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Business Loan Interest Rates updated Mar, 2019

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Comparison of Business Loan Interest Rates from Top Providers

Business Loan Interest Rates Comparison of Top Banks/NBFC (updated 23 Mar,2019)

Bank/NBFC Institution Type Minimum Loan Amount Maximum Loan Amount Minimum Tenure Maximum Tenure APR Fees & Charges
Axis Bank Bank ₹50,000 ₹50,00,000 1 Year 15 Years  Custom Up to 2% + GST as applicable
Aditya Birla Finance Ltd. NBFC ₹50,000 ₹15,00,000 1 Year 3 Years 16.85% - 17.85% Up to 2% + GST as applicable
Arohan Financial Services Ltd. NBFC ₹5,00,000 ₹75,00,000 9 Months 2 Years 20.70% - 26.99%  1% + GST as applicable
Bajaj Finserv NBFC ₹1,00,000 ₹30,00,000 1 Month 8 Years 18% - 40% Up to 3% + GST as applicable
Capital First NBFC ₹10,00,000 ₹75,00,000 1 Year 5 Years 16.00% - 24.00% Up to 2% + GST as applicable
Clix Capital Services Pvt. Ltd. NBFC ₹10,00,000 ₹50,00,000 1 Year 3 Years 12% - 15% Up to 2% + GST as applicable
Deutsche Bank Bank ₹ 10,00,000 ₹50,00,000 2 Year 4 Years 24% Up to 3% + GST as applicable
Edelweiss Financial Services Ltd. NBFC ₹3,50,000 ₹25,00,00,000 4 Years 10 Years 20.50% 2% - 3.5% + GST as applicable
Equitas Small Finance Bank Bank ₹5,00,000 ₹75,00,000 1 Year 5 Years 18% 2% + GST as applicable
Fortune Financial Services - Kapital Tech NBFC ₹2,00,000 ₹150,00,000 3 Months 2 Years 15% - 24% 1.5% - 2% + GST as applicable
Fullerton NBFC ₹10,00,000 ₹50,00,000 1 Year 4 Years 13% - 16%  Up to 6.5% + GST as applicable
HDB Financial Services Ltd. Bank ₹ 1,00,000 ₹30,00,000 1 Year 5 Years 12% - 36% 2% + GST as applicable
HDFC Bank Bank ₹50,000 ₹50,00,000 1 Year 4 Years 15.65% to 21.20% Up to 2.50% + GST as applicable
ICICI Bank Bank ₹1,00,000 ₹10,00,00,000 1 Year 5 Years 12.9% - 16.65% Up to 2% + GST as applicable
IDFC Bank Bank ₹1,00,000 ₹40,00,000 1 Year 5 Years 11.69% - 15% 1.5% + GST as applicable
India Infoline NBFC ₹1,00,000 ₹50,00,000 1 Year 5 Years 18% - 25% Upto 3% + GST as applicable
IndusInd Bank Bank ₹1,00,000 ₹15,00,000 1 Year 5 Years 10.6% -18% 0.5% + GST as applicable
Kotak Mahindra Bank Bank ₹3,00,000 ₹2,00,00,000 1 Year 3 Years 16.00 % to 19.99% Up to 3% + GST as applicable
Lendingkart Finance Ltd. NBFC ₹50,000 ₹100,00,000 1 Month 1 Year 18% - 27%* 2% + GST as applicable
Magma FinCorp Ltd. NBFC ₹3,00,000 ₹2,00,00,000 1 Year 4 Years 17%  - 21% 2% + GST as applicable
Neo Growth NBFC ₹2,00,000 ₹75,00,000 6 Months 2 Years 12% - 36% 2% + GST as applicable
RBL Bank Ltd. Bank ₹10,00,000 ₹35,00,000 1 Year 3 Years 16.00% - 27.00% 2% + GST as applicable
Standard Chartered Bank Bank ₹10,00,000 ₹75,00,000 1 Year 5 Years 13.5% - 20% Up to 2% + GST as applicable
Tribe Tech Private Limited NBFC ₹1,00,000 ₹20,00,000 1 Year 3 Years 12% - 36% 2% + GST as applicable
Yes Bank Bank ₹20,00,000 ₹400,00,000 1 Year 5 Years 13.25% - 19.99% Up to 2.5% + GST as applicable
Business Loan Interest Rates Details

Factors Deciding Business Loans Interest Rates

There are main factors that determine the business loan interest rate. However, the top 4 among the list are mentioned below:

  • Credit Score: All applicants who have good credit score can walk into any bank to get a business loan. The better you score is you can avail more benefits and the interest rate will also depend on the same.
  • Time in Business: Irrespective of what type of business it is, the minimum operation period is of two years or more. The longer a business has been in existence the more is the probability of getting a loan.
  • Monthly Revenue: Return or income is always a key factor for any type of loan. For business loan the consistency is a main factor. All business has different revenue at different period, but having a consistency is crucial. The average daily balance is analyzed by banks to determine the loan amount and repayment capability.
  • Collateral: It is the security that is pledged with a bank to avail loan, the more the collateral value is, the benefits are more. This gives a security for the banks to offer bigger amount as the risk is low. The different types of collaterals are deposits, home equity, investment real estate and equipment.

Things to Compare Before Applying for a Business Loan

  • Per Month's EMI: For this factor, not just present status is considered, the past records of financial stability holds lot of value in deciding the capacity to pay per month EMI. It is a key to success in all fields if you have good financial records, this can decide the interest rate percentage, loan amount and tenure when applying for new loan. Make sure you are paying your EMI with the excess fund that is not affecting your basic needs requirements. It is essential to make sure this payment is made without any default as it will affect the CIBIL score.
  • Processing Fee: It is a onetime payment made to the bank to get them to process the loan amount. It’s the additional cost incurred for the service charges. This is not refundable and no interest will be provided on the same. No matter what loan you are looking for, this charge is unavoidable and is expected to be paid at the initial stages.
  • Prepayment: If ever there of a chance to pre close the loan amount before its tenure, it can be done so with an additional prepayment charges. This is calculated on the outstanding balance by the bank to check the service charges and other factor.
    Make use of the business loan option to start your journey towards your dream. Money should never be a show-stopper to start any business in this era when there are ample options available.

Best Way to Compare Business Loans

Before making the final decision on your business loan provider, make sure the various factors are compared with other banks and NBFCs. The factors that should be considered are interest rate, processing fee and other charges, EMI, which type of interest rate method is used, what are eligibility criteria, is there a need for collateral or not. How reliable the bank is, what minimum requirement criteria are and so on.

ReviewsView All

Narayan Rao

5 / 5

Fast processing ever!! I opted Bajaj Finance from Finance Buddha portal for my Business loan. And I got a quick response from them. Ever there were time to time follow up by the Finance Buddha team of executives. There was a good support from the bank staff as well.
Varun Kashyap

5 / 5

I went with Bajaj finance for my Business Loan. They provided me the loan at an interest rate of 16% p.a. and the processing fee was 2%. The processing was on time and I got the business loan approved just in 18 working days. I am really very happy with their service.
Amit Sahu

5 / 5

Good interest rates and a very good follow up by the bank executives. Will recommend it to others also.
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