Getting the right funding for your business is very important. It’s not always an easy task to select the best one when a number of options are available in the market. While there are plenty of lenders and business loans in the market, the best one for you depends on a number of factors. These factors are important to consider as they can save you a lot of money. Choosing the best business loan for your business can definitely help you grow your business.

It’s also an important factor to consider lenders who can lend the type of loan you need. Your repayment capacity, your annual revenue, your personal and business credit score, and your required funding time are also too important to consider before you apply for a business loan with a particular lender. The business loan applicant should calculate business loan EMI, before opting a loan.

To save you time and effort, we’ve brought together a list of things you should check to get the best funding for your business.

Best Business Loans Providers in India 2019

HDFC Bank Business Loan Details

Interest Rate: 15.65% to 21.20% per annum

Processing Fees & Charges:  Up to 2.50% + GST as applicable

Minimum Loan Amount: ₹ 50,000

Maximum Loan Amount: ₹ 5,000,000

Minimum Tenure Period: 1 year

Maximum Tenure Period: 4 years

IndusInd Bank Business Loan Details

Interest Rate: 10.6% -18%

Processing Fees & Charges: 0.5% + GST as applicable

Minimum Loan Amount: ₹ 100,000

Maximum Loan Amount: ₹ 1,500,000

Minimum Tenure Period: 1 year

Maximum tenure Period: 5 years

IDFC Bank Business Loan Details

Interest Rate: 11.69% – 15% per annum

Processing Fees & Charges: 1.5% + GST as applicable

Minimum Loan Amount: ₹ 100,000

Maximum Loan Amount: ₹ 4,000,000

Minimum Tenure Period: 1 year

Maximum Tenure Period: 5 years

ICICI Bank Business Loan Details

Interest Rate: 12.9% – 16.65%

Processing Fee & Charges: Up to 2% + GST as applicable

Minimum Loan Amount:  ₹ 100,000

Maximum Loan Amount: ₹ 100,000,000

Minimum Tenure Period: 1 year

Maximum Tenure Period: 5 years

AXIS Bank Business Loan Details

Interest Rate: The interest rates are based on the assessment of business profile, financial assessment, past business record, loan amount as well as on the tenure period.

Processing Fees & Charges: Up to 1.25% + ST

Minimum Loan Amount: ₹ 50,000

Maximum Loan Amount: ₹ 15,000,000

Minimum Tenure Period: 1 year

Maximum Tenure Period: 3 years

How to Know Which Business Loan is Best for You

Requirement of borrowers always differ and according to the requirement, only one can decide the best business loan for them.

For example – Your business is a small scale business and your loan requirement is for a low amount say ₹50,000. In this case, Axis Bank and HDFC bank will be the best option for you as they start offering business loan from a low amount of ₹50,000. Where when your loan requirement is of a huge amount say, 10,00,000 and you want to repay this loan in just 2 years. In this case, you have to consider the maximum and minimum tenure period of the lender instead of checking for the loan amount.

How to Find the Best Business Loan

1. Be Prepared with the Paperwork

Once you are sure that you need a business loan, your first step should be to gather all the needed documents for the loan. This involves bringing together essential papers such as your tax bills, business credits, business profit and loss statement, and other associated legal documents such as business license and all. Keeping these documents handy helps you get the best of the business loan available followed by faster processing of the business loans.

2. Figure out the Appropriate Amount you Need

Try to figure out the average amount that you need for your business. look for all the possible requirements and then decide the amount you need to borrow. Make sure that that the value you decide is 99% accurate. As borrowing less and more both can cause trouble for you. Borrowing more will lead to the burden of repayment along with the interest. Whereas by borrowing less, your business need cannot be fulfilled.

3. Ask for Help from Experts if you are in a Doubt

Searching and opting for the best business loans at times is not an easy task. Here experience and competence of professionals count. Taking help from experts will help you compare various business loans that you come across in the market.

Understanding your requirements and needs, clear most of the queries. This helps you to get the business loan faster.

4. Verifying the Funding Sources

You should never count on brokers. When you go for a loan, you should be always clear about all the charges involved. This is very important because there are times when people tend to overlook most of their hidden charges. And this adds to the expenses of business loan. So, have a clear idea of the fees and other services that you will be charged and then opt for the best.

5. Check for the Interest Rate

Interest rate is one of the most important factors to consider when you are looking for a business loan. For this, you can compare online among all the business loan providers available in the market. Interest rate is very important as the total cost of your business loan depends on it.

6. Checking for the Repayment Options

Repayment option is the yet another thing which has lots of significance when you opt for a business loan. There are different types of repayment option which includes increasing and decreasing EMI options, pre-closure, pre-payment and all. Hence it becomes more important to select the best one for you, depending on your requirements.

To Conclude

You may feel that you have less time to consider these points, but it’s ok to slow down a bit in order to succeed. The best thing you can do is not to rush to any conclusion. Be patient and carefully analyse all of your options before proceeding for a particular one.