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Business Loan Details

Company Details

Turnover

Net Profit After Tax

Depreciation

Director/Partner Salary

(Not Applicable for Proprietorship Firm)

Personal Details

Comparison of Best Business Loan Offers from Top Providers

Business Loans Interest Rate Comparison of Top Banks/NBFC (updated @today)

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
Rate of Interest is high ?
Rate of Interest is high ?

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Not getting the desired Loan Amount?
Not getting the desired Loan Amount?

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Have multiple existing loans?
Have multiple existing loans?

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Business Loan Details

Business Loans in India

Business Loan is one the great way to increase financing towards various business needs. There are many banks that offer loan upto 30 lakhs with and without collateral with pre-approved offers. It is the money that is credited to your account with certain percentage of interest and fixed tenure for repayment. This amount can be used for expansion of existing business or the start a business from the scratch. According to the needs of the business, the loan amount will be approved by each bank.

Purposes of a Business Loan

The main purposes of opting for a business loan are listed below:

  • To expand the business
  • To expand business location
  • To start a whole new business
  • To build credit for future requirements
  • To purchase equipment for business
  • To purchase more inventories
  • To bring in fresh talents to the business

Types of Business Loans

The different types of business loans a business owner can get are mentioned below. Main use of this list to choose the best one that serves your purpose.

  • Line of Credit Loans
  • Installment Loans
  • Balloon Loans
  • Interim Loans
  • Secured And Unsecured Loans
  • Letter of Credit
  • Alternative Financing

Different Business Loans You can get in India

Business Loans for Start-ups and New Businesses

Many people who are planning for a business wonder do banks provide loan for new business- the answer is yes, it does. Every new business can apply for loan for working capital as per their requirements. Loan is for provided for startups for research and development of technology, for buying equipment and technology, for stocking inventory with and without collateral or security. There are even specific schemes and offers provided by banks for new businesses.

  • Banks are more approachable than venture capitalists
  • Banks don’t require equity dilution
  • Banks have structured framework for funding various requests
  • Banks don’t need any share of your profits/ loss

Business Loans for Bad Credit

Are you concerned about bad credits? It is not a show-stopper for availing a bank loan for your business. There are banks that are ready to offer banks loan even if the credit rating is poor. This is possible with your revenue status, the type of business, loan requirement as compared to the assets of the company- if the assets of the business have more value than your loan requirement; you have good probability to get a loan.

Business Loan for Women Entrepreneurs

In the last few decades, women owned businesses have increased in India. The growth and emergence of these women-owned companies have greatly funded towards economic development of India. Here most women-owned companies are connected with the service sectors.

Women-owned companies have not only created a way for economic individuality but similarly, have created infinite job openings for everyone. Small business and Enterprises development programs have an important role in economic development of the women in our country. But, it is a fact that women businesspersons have faced a lot of problems with regard to funding. A female businessperson should have detailed knowledge about the funding arrangements and sources while deciding to secure a business-loan. Investment is the support of a business, lack of sufficient financial support puts the business to difficult situations. Some schemes exclusively for women for business loans are Annapurna scheme, Stree Shakthi Scheme, Bharatiya Mahila Bank, Dena Shakti Scheme, Udyogini Scheme, Cent Kalyani Scheme, Mahila Udyam Nidhi Scheme, etc.

Business Loan for Expansion or Working Credit

Has your small new business had a ‘eureka’ moment which has excited you to expand it? Is funding an issue for growing your business? Make use of business loans for expanding your business. A good credit score, revenue details and other documentation will help you get the money you are in need of. Make use of the online services to compare facilities offered by different banks for expanding your business and choose a best one that has good features like low interest rate, maximum tenure, no hidden charges, and low processing fees and so on. Depending on the expansion requirement it is the duty of the borrower to decide whether they should go for a short term loan for a year or a long term loan that last for more than 3 to 5 years.

Features of Business Loans

Some important features of business loan are listed below:

Features Business Loan
Interest Charged Monthly in arrears
Interest Rate Fixed or variable
Interest Only Option Yes
Maximum Loan 80% of value (less existing debt)
Minimum Loan Term Fixed for fixed rate term
Maximum Loan Term 15 years
  25 years (residential security)
Repayment And Access Types Business Term Loan
Repayment Type Principal & interest or interest only paid in arrears
Repayment Frequency Yearly, monthly
Additional Repayments Yes
ATM Access No
Internet Banking Access Yes

Benefits of Business Loan

Accessible and Convenient – Accessible is the best feature of banks, it is very essential factor as well as there will be a need for regular conversations, depositing savings or any withdrawals. After being customer for a specific bank for years, the customer gains trust on the bank and simultaneously a good track record will help bank to be lenient with its customers too. This familiarization helps in having personalized services.

Multiple Loan Options – All banks promote various types of programs and schemes to encourage businesspersons set ups to make use of these. The actual earnings for all bank is from the rate of interest charges on loans. Few options offered are standard business loans, term loans and others as per the need.

Non Profit Sharing – Angel investors and venture capitalists agree to offer a loan with the agreement of having partly ownership on the business, they will thus get the right to powers of the business and in decision makings also they will share the profits of the business along with the business owner. On the flip side banks don’t put their hands into business money, everything you earned through your business is all yours. There is no share of profits or loss. Banks sanction a loan with the intention of getting their interest and partial loan-payment installments.

Lower Rates of Interest – Rate of interest in banks is low as compared to those of the lending agencies and few finance instruments such credit cards, etc.

Business Loans Offer Tax Benefits – Businesses taking bank loan can enjoy tax benefits, since the ratio of profits is used to pay the loan amount; it is exempted from tax calculations.

Business Loan Comparison from Different Banks/NBFCs 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, which type of interest rate method is used, processing fee and other charges, EMI, 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.

Business Loan Requirements

  • Documents required for a business loan in India are mentioned below. Each of these are essential for applying a business loan:
  • Address Proof: Electricity bills, water bill, telephone bills etc
  • Bank Statement 6 Months
  • ID Proof: Passport, Voters ID card, Driving License and Pan Card
  • Proof of Continuity of Business
  • ITR & Statement Of Computation of Income – up to 2 Years
  • Board Resolution (If pvt ltd co. is Partnership Authorization Letter/ co-borrower {if partnership firm just co-borrower}
  • CA Certified or Audited P/L Acc Statement and schedules of P&L along with Balance Sheet – for last 2 years
  • Ownership Proof of Residence or Office
  • Latest ITR of the Co-Applicants – For last 2 Years

Top Business Loan Providers in India

1.    HDFC Business Loan

HDFC Bank business loan is quick, easy and provides attractive offers to its customers as well. One can use the online business loan EMI calculator present on the Finance Buddha website to know the approximate EMI which you need to pay against your business loan. HDFC bank gives fast approval and is ideal for a business loan. One can get a business loan up to ₹ 5,000,000 but it will totally depend on the borrower's eligibility.

HDFC Bank provides a business loan to expand your business, upgrade the equipment, purchase inventory, and pay your staff and many more. Business loan processing with HDFC is totally a hassle-free and quick process, which is enough to boost your business.

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

2.    IndusInd Bank Business Loan

IndusInd Bank is one solution for all your financial business needs. A business loan from IndusInd Bank has the capacity to boost your business and give it a new shape which can take it to the next level. The bank offers the lowest interest rates to the borrowers. The service provided by the bank is fast, flexible which is followed by speedy disbursal of the loan amount. The customer support system of the bank is very responsive and provides quick answers to all your queries.

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

3.    IDFC Bank Business Loan  

IDFC Bank offers a high loan amount business loan to its customers which starts from ₹ 100,000 and can go up to ₹ 4,000,000. The interest rate at which loan is offered is also lower than the other banks comparatively. It offers Comfortable tenure of 1 year to 5 years which makes it more comfortable for the applicants to borrow. The process is fast smooth and hassle-free.

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

4.    ICICI Bank Business Loan

ICICI Bank comes among the top provides of the business loan. It provides competitive interest rates and offers which makes it more e favourable for the borrowers. Convenience to the borrowers it the topmost priority for this bank and hence they have designed their system likewise.

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

5.    Axis Bank Business Loan

Axis bank offers business loan at attractive interest rates. The bank has different schemes for different group of people which helps the existing enterprises to grow. In the case of professionals, it offers collateral-free business loan whereas for SMEs it has different offers which help them to flourish. This loan contains flexible repayment option and Competitive pricing.

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

Pre-requisites of a Business Loan

The major 5 pre-requisites for applying for a business loan are mentioned below. Ensure you are eligible per each of these before applying.

#1 Good Personal Credit:

The credit worthiness of a person is evaluated per the CIBIL score, the higher the score is, the more worth and eligible the person.

#2 Good Business Credit:

For an existing business, the years of operation, the revenue pattern, credit worthiness is evaluated before considering for processing. Independent credit score for a company that is associated with the tax ID number and legally incorporated name is considered.

#3 Large Asset Base:

Having a collateral or security will help in easy processing of the loan, the lesser the risk is, faster will be the processing of loans by banks.

#4 Solid Business Plan:

Even if there is no existing business, having a great business plan with execution blue-print will be legally considered and scrutinized by the banks for offering a business loan.

#5 Industry Experience:

Though it’s rare to get loan for a business that has no experience, having industry experience will serve the purpose. Having ample knowing and experience in the industry is more than sufficient by banks.

How to Select the Right Business Loan?

The best 6 step of finding the right business loan is mentioned below:

Step 1: Complete all paper work well in advance.

Step 2: Draw an estimate of how much money is required now and how much is need for future.

Step 3: Seek for experts help.

Step 4: check for what is the fee, interest rates and other charges for each bank.

Step 5: Decide whether you need a long term business partner or just quick capital.

Step 6: Ask the right questions without hesitation.

How to Get Business Loan Online? 

It is not just helpful in getting a loan but you can simply compare between various banks and what it offers. Giving few basic details like name, contact details, loan amount, type of business and income from business will give you a list of banks that can offer business loan, use this information to compare and apply. The application will be processed by banks and will contact you to the request to next level of processing.

How to Apply For Business Loan Online at Finance Buddha?

One of the easiest and smart ways to apply for a business loan through online is Finance Buddha, a one-stop solution provider for all business loan requirements is Finance Buddha. Finance Buddha has a mission to make digital borrowing experience streamline and hasslefree one. As such we have a very simple, short and easy to fill online application. Here are simple steps to apply for business loan online.

  1. Check for the best offers and best suitable bank for you.
  2. Fill up the Business loan application form completely available on the website.
  3. Submit the filled application form along with the documents required.
  4. Payout the Business Loan Processing Fees.
  5. Sign the loan agreement and Acceptance.
  6. Your Business loan will be sanctioned and disbursed.

Here the details that you would need to provide in your  business loan application:

  • Borrower name
  • Company name
  • Year of Incorporation
  • Loan amount
  • Turnover
  • Choose the city
  • Net profit after tax
  • Mobile number
  • Depreciation
  • Email ID
  • Partner salary

Why Apply for a Business Loan Online with Finance Buddha?

Here are a few reasons for you to choose Finance Buddha for online business loans:

  1. Finance Buddha is the largest DSA for loans in India and is partner with all the top banks and NBFCs in India.
  2. At Finance Buddha portal one can compare different Business Loan offers and the interest rate at which loan is offered from various banks.
  3. No need to visit any lending institution. The entire process is completed while sitting at home.
  4. The website is user-friendly and provides you with complete information regarding business loan offerings from top banks and NBFCs in India .
  5. One can easily compare offers and other eligibility criteria with different banks to choose the right bank for themselves.
  6. At Finance Buddha, interest rates and offers by the different bank are totally genuine.
  7. One can check business loan eligibility before applying for the business loan easily on the finance Buddha website, and can get to know whether he/she is eligible for a business loan or not, using the business loan eligibility calculator.
  8. One can also get to know the EMI of their business loan before availing it using a business loan EMI calculator.
  9. One can easily apply online for a business loan product directly through the Finance Buddha website in no time.
  10. Finance Buddha team provides to you end to end assistance along with doorstep service with a dedicated customer care team for smoother processing and disbursal of your business loan.

Do’s & Don’ts of Business Loan

There are always dos and don’ts for anything and everything, when it comes to applying a loan especially for your dream business, you should be extra vigilant. Here are few Do’s and Don’ts of business loan:

Do’s:

  • Provide all necessary documentation related to the loan requirement, if you have any existing business, includes it P&L and balance sheet statements
  • Keep all original documents handy like revenue slips, bank statements, tax payment receipts and other financial documents.
  • Keep a close watch on your credit rating and the business’ rating!
  • Don’t apply for too many loans, limit it as per the necessity
  • Ensure to make payment on all outstanding debt obligations and be aware of the penalties

Don’ts:

  • Don’t ask lender the income requirement, check these details well in advance through other sources
  • Huge purchases and outstanding debts will impact the loan approval, thus avoid the same.
  • Changing company legal name, partners’ details at the last minute will impact the approval of the loan and creates unnecessary complications
  • Don’t borrow from lenders, credit cards or other banks during the business loan approval process

There is nothing wrong in consulting a lawyer anytime you feel there is need for more personalized information. However do keep in mind there are lots of only service providers who can provide the same information at free of cost!

Business Loan Frequently Asked QuestionsView All

What is a Business loan?

Business loan is a 1-3 year unsecured loan given by banks, NBFC’s (Non Banking Finance Companies) or P2P lending platforms without asking for any collateral, guarantor or hypothecation of any assets. Entities like proprietorship, partnership, private limited company or public limited company are eligible for this type of borrowing. The usage of a business loan is left to the discretion of the borrower and can be used for working capital purposes, meeting short term cash flow requirements, investments into plant and machinery etc.

How is my loan eligibility calculated?

Loan eligibility is dependent on primarily the following factors:
  1. The credit score of the entity and/or the partner/director/proprietor of the borrowing entity as reflected in your CIBIL or Equifax report or any other credit bureau. Having a good credit score is a necessary but not a sufficient criteria. If the credit score is a border line case then the bank may take a subjective call to limit the loan amount.
  2. The last 2 year financials of the borrowing entity. Factors like turnover, partner/director salary, depreciation, interest cost, net profit after tax are some of the key parameters that goes into deciding the loan amount.
  3. Ability to service the EMI for the current loan be requested as depicted by the Debt service coverage ratio (DSCR). Banks generally ask for a DSCR of 1.0 to 1.5 depending on case to case basis.

Pre Closure vs part- prepayment?

Pre closure means that a customer wants to close the entire principal outstanding amount at one go. Whereas part payment means that a customer wants to repay only a certain portion of the outstanding amount. Please ask our advisor for more details on this when your loan is being processed.

ReviewsView All

Arulraj Bhusaheb

5 / 5

Great service provided by HDFC. I have my Business loan with them. Processing was smooth nad rate and charges were nominal. I got it approved within 15 days.
Umang Parmar

5 / 5

My business loan amount was for Rs 15 lacs and it got approved on a nominal interest rate for a tenure period of 7 years. My loan is with ICICI and they handled it well.
Kumar Shiva

4 / 5

My experience with Standard Chartered Bank for a Business loan was good. The process was completed smoothly and i received my loan amount on in just 18 days. Customer service is quite appreciable as their response was on time.
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