Importance of Business Loans
Funding is very important for the smooth functioning of any business, irrespective of whether it is a small enterprise, medium enterprise or a large one.
Free flow of cash is an important thing to maintain and run a business. Money is required as working capital, for purchasing inventory on the other hand it is equally important to scale and grow your business.
Hence, raising funds for a business is an ongoing process as it is very important for its survival. Even when you successfully set up your business without any funding issue, still money is required for its smooth functioning.
However, there are a number of funding options available for a business. Among all, banks are considered the most convenient and reliable source which can provide you financial support as per your requirement. Talking about the banks there are various banks providing business loans. These loans are available easily and can help you get out of your financial worries by providing you funds.
In India, all the top banks provide business loan facility. As such, there is a huge competition among them to provide more benefits so that they have more customers.
However, this is also tough for consumers to choose the best business loan provider for them.
Worry not, in this article, we’ll take a look at the Top 3 business loan providers in India which offer the lowest business loan rates.
Top 3 Lenders with Lowest Business Loan Rates
HDFC Bank
A Business Loan from HDFC Bank is the perfect solution to all your financial business problems. It provides financial support to your business which helps it to grow and flourish.
HDFC trust you to scale new heights! And hence finances all your business requirements.
HDFC Bank Business loan can be used to transform your business the way you want.
HDFC Business Loan has minimal eligibility criteria to be fulfilled and comes along with lots of benefits. Funds can be availed for any type of business need from purchasing inventory to expanding business or from maintaining the capital flow to purchase outlet area.
Eligibility Criteria to Apply for HDFC Bank Business Loan
- Your age should be at least 21 years at the time you apply for the loan and it should be not more than 65 years at the time of loan maturity.
- Self-employed individuals, Private Ltd. Co. and Partnership Firms involved in the business of Manufacturing, Trading, Services, and Proprietors are eligible for this loan.
- To be eligible for HDFC loan your business should have a minimum turnover of ₹ 40 lakhs.
- An Individual should have been in the current business for a minimum of 3 years, with 5 years of total business experience to qualify for this loan.
- Your business should have been making profit from the last two years.
- To qualify for HDFC business loan, your business should have a Minimal Annual Income (ITR) of ₹ 1.5 lakhs.
Documents Required
Identity Proof: Aadhaar Card / Passport / Voter ID Card / PAN Card / Driving License
Address Proof: Aadhaar Card / Passport / Voter ID Card / Driving Licence
Business Documents: Audited Proof of continuation (ITR / Trade license / Establishment / Sales Tax Certificate / Other authorized business licenses.
Income Proof: Last 6 months Bank statement / Latest ITR documents along with computation of income / Balance Sheet and Profit & Loss account of last 2 years
HDFC Business Loan Details:
Interest Rate Range: 15.65% to 21.20%
Loan Processing fees: Up to 2.50% of the loan amount, which can be a minimum of ₹ 2359 and up to a Maximum of ₹ 88500.
Prepayment: Prepayment not permitted until the repayment of 6 EMIs.
Prepayment charges:
- During 7 months to 24 Months at 4% of Principal Outstanding amount.
- During 25 month to 36 Months at 3% of Principal Outstanding amount.
- After 36 Months at 2% of Principal Outstanding amount.
Axis Bank
Axis bank is also one among the top providers of business loan in India. The loan can be availed to fulfil any type of business requirement. It can be for paying your staff or to fulfil your need for working capital. Axis bank business loan is one answer to all your business needs. The most important point of Axis Bank business loan which can be in your favour is the flexibility on the Interest rate, here the interest rate is negotiable and totally depends on your eligibility and on your personal & business profile.
Eligibility Criteria to Apply for Axis Bank Business Loan
• Salaried Individuals
- Anyone who is in permanent service in a reputed company or in government are eligible for this loan.
- The applicant’s age should be more than 24 years at the time of applying for the loan and it can be 60 at the time of loan maturity.
• Professionals
- Professionals such as doctors, architects, engineers, chartered accountants, company secretary, cost accountants, and management consultants are also eligible for this loan.
- The applicant’s age should be more than 24 years at the time of applying for the loan and it can be a maximum of 65 years at the time of loan maturity.
• Self-employed Individuals
- Anyone filing Income Tax returns is eligible.
- The applicant’s age should be more than 24 years at the time of applying for the loan and it can be a maximum of 65 years at the time of loan maturity.
Axis Bank Business Loan Details:
Processing fees: up to 2% + taxes applicable
Loan Amount: up to ₹50 lakhs
Loan Tenure: From 12 to 36 months
Interest Rate: Depends on the applicant’s profile and financial history.
Documents Required
Address Proof: Utility bills such as – Electricity bills / water bill / telephone bills / Bank Statement 6 Months
ID Proof: Passport / Voters ID card / Driving License and Pan Card
Proof of Continuity of Business: Business licence and ownership documents
CA Certified or Audited profit and loss Statement and schedules of P&L along with Balance Sheet – for last 2 years
Address Proof of Residence or Office (any)
Latest ITR of both applicants and co-applicants for the last 2 Years
Tata Capital
Money is required at each and every step of a business in terms to make it grow and to scale large. Tata Capital understands this and offers business loans at affordable rates to the entrepreneurs who have their own business. The bank offers lots of benefits along with flexible repayment options to its customers making it more preferable one for the business owners.
The Documents Required by Tata Capital
- KYC documents for both applicants and co-applicant.
- Passport Size photo of each applicant and co-applicant.
- For income proof, you need to show ITR, audited balance sheet and profit and loss statement for the last two years along with the bank statements for the last six months.
- For business proof, you need the last year provisional and sundry creditors and debtors list.
- For business proof, Partnership deed / MOA and AOA / License issued under shops and establishments act.
Tata Capital Business Loan Details:
Loan Amount: up to ₹ 50 lakh
Tenure Period: from 12 months to 36 months
Processing fees: Depends on the loan amount
Interest rate: 19% and onwards
Eligibility Criteria to Apply for Tata Capital Business Loan
To get qualified for this loan an applicant should have a minimum age of 24 years and he / she can be a maximum of 65 years at the time of loan maturity.
The individual should have been running the business from at least 3 years ago.
One should have all the required documents
