Feb 6, 2026
•5 min read
Collateral vs. Unsecured Loans: Which One Fits Your Business Rhythm?
Choosing the right finance is about more than just getting the money; it’s about how that money affects
your daily “kaam”. While both types of loans look at your business performance, the way they are
structured is very different.
At Quince Capital, we specialize in SME LAP (Loan Against Property). We believe in unlocking the
value of your property to fuel your business dreams with capital that is both affordable and flexible.
Let’s look at the differences and why a property-backed loan is often the smarter move for growth.
1. The Reality of Unsecured Loans
Unsecured loans don't require property, but they come with a "hidden" cost to your business rhythm.
- High Pressure: Because there is no collateral, lenders charge much higher interest rates to cover their risk
- Short Leash: You often get a smaller amount with a very short repayment time, which can squeeze your monthly cash flow
- Rigid Terms: These loans are often "one-size-fits-all" and don't care if your business has a slow month
2. The Quince Advantage: SME LAP
SME LAP is about using what you already own to get a loan that actually supports you.
- Lower Cost, Higher Growth: By providing property as security, you unlock much lower interest rates compared to unsecured finance.
- More Room to Breathe: You get access to larger loan amounts from ₹3 lakh up to ₹75 lakh with longer repayment tenures that match your actual pace
- Flexible Repayments: We build repayments that follow your cash flow whether that is weekly, fortnightly, or monthly
- Safe and Transparent: You get a corporate-style loan with fast, transparent digital processing, even if you are a micro-entrepreneur
The Comparison at a Glance
| Feature | Quince SME LAP | Unsecured loan |
|---|---|---|
| Main Requirement | Property + Business Performance | Business Performance only |
| Cost of Capital | Lower & Affordable | Usually very high interest |
| Loan Amount | Up to ₹75 Lakh | Limited and smaller |
| Repayment Plan | Matches your rhythm – weekly, fortnightly, monthly | Often rigid and aggressive |
| Best For | Sustainable, long-term growth | Very small, short-term gaps |
Why LAP is the better choice for your rhythm
If you own a shop, office, or residence, letting that asset sit idle while you pay high interest on an unsecured loan doesn't make business sense.
A Quince SME LAP gives you the "Big Business" advantage: more money, lower rates, and a partner
that understands your timing. We focus on the capital, so you can focus on your craft.
Stop waiting. Unlock your property's value and start growing today.
