Top Business Loans in India: Compare Features, Interest Rates, and Eligibility

Business Loans in India

When it comes to starting or expanding the business, securing adequate financing is often a crucial step. In India, entrepreneurs and business owners use business loans to expand and start new businesses. There are many banks, non-banking financial companies (NBFCs), and other financial institutions in India which offer business loans to the companies at a good rate of interest. These loans are used for different business needs like for working capital requirements, expansion plans, purchasing equipment, or funding new business or plans. However, choosing the best business loan in India is very overwhelming because there are many lenders and loan providers available in the market. Today, we bring you a list of top business loans in India which you can opt for. Now details of business loans highlighting their features, eligibility criteria, interest rates and other important factors to help you make the right decision for your company.

1. State Bank of India (SBI) Business Loans:

 State Bank of India (SBI) Business Loans: State Bank Of India offers various kinds of business loans. They are designed to meet the diverse needs of entrepreneurs and businesses across different sectors. SBI business loans come with various features and benefits which attract small companies as well as large companies. SBI Business loans fulfil a wide range of business requirements like working capital, equipment purchasing, business expansion or introducing various new projects.

Key Features of SBI Business Loan

  • Loan Amount: SBI provides business loans ranging from a minimum of Rs 50,000 to a maximum of Rs 20 crore, depending on the financial requirement of the company as well as its history.

  • Interest Rate: SBI provides a different range of interest rates on business loans, varying from 10% to 21%. Its interest rate attracts most companies.

  • Flexible Repayment Options: SBI offers flexible repayment options from 1 to 5 years, according to your company’s choice. It allows businesses to select their tenure based on their flexibility and financial capabilities.

  • Minimal Documentation: SBI has a simplified documentation process to provide easier and quicker loans to businesses.

  • Eligibility Criteria: SBI business loans are available to various entities such as sole proprietorships, partnerships, limited companies, and so on.

2. HDFC Bank Business Loan:

HDFC Bank offers personal as well as business loans. They fulfil the financial needs of every Indian. They provide various loan options for specific business needs like working capital, term loans, equipment purchasing, etc.

Key features of HDFC Bank Business Loan

  • Loan Amount: HDFC Bank can provide business loans up to Rs 50 lakhs, even Rs 75 lakhs at selected locations. They provide loans without any collateral, guarantee and security. You can use HDFC loans for various purposes like business expansion or personal needs.

  • Flexible Tenure: HDFC Bank Business Loan tenure from 12 to 48 months. They provide flexibility to business owners to repay the loan.

  • Eligibility Criteria: To get the HDFC business loan, they have pre-fixed criteria. To get a business loan, the company has to show a turnover of 40 lakh at minimum, 3 years of operational work, profitability of the past 2 years and minimal annual income of Rs 1.5 lakh. In Addition, the business owner must be between 21 to 65 years old.

  • Easy Apply: Companies can apply for the HDFC Bank Business Loan on the website. After submitting the application form, a person from the bank will coordinate with the company.

  • HDFC Bank Loan provide convenient borrowing options, credit protection, and quick eligibility checks

3. ICICI Bank Business Loan:

 ICICI Bank business loan fulfils the financial needs of self-employed people, professionals, new businesses and businesses without audited financials, which means they provide loans to everyone.

Key features of ICICI Bank Business Loan:

  • Loan Amount & tenure: ICICI Bank can provide business loans up to 2 crore with a repayment tenure of 7 years. The tenure period is also important for the business owner.

  • Eligibility Criteria: To qualify for a business loan, the candidate must meet specific age, turnover, and profit. In Addition, it needs proof of business stability.

  • Interest Rate: The interest rate of ICICI Bank loans varies from 12.90% to 16.50%. The rate of interest is determined by the loan amount, CIBIl score, and tenure period. There is also an option to pay the remaining loan amount at once after 6 months of EMI.

  • Required Document: The candidate has to submit a PAN card, Identity Proof like an Aadhar card, address proof, business plan, bank statement, ITR file and many more.

  • ICICI Business Loan has an overdraft facility and no requirement for a guarantor or security.

4. Axis Bank Business Loan:

Axis Bank offers business loans to companies and firms at the minimal documentation and attractive interest rates. They provide loans to individuals, partnerships, sole proprietorships, Limited Liability Partnerships, Private limited companies as well as trusts and societies.

Key features of Axis Bank Business Loan

  • Loan Amount: Axis Bank can provide loans from 3 lakh to 50 lakh for the small business.

  • Tenure: they provide a tenure period of a minimum of 12 months to a maximum of 36 months, depending on the candidate’s CIBIl score and loan amount.

  • Rate of Interest: They have a Floating Rate: of 11.05% to 17.75% and a Fixed Rate: of 14.25% to 20% per annum with 2% of processing charges and 2% of part payment charges.

  • Age Requirement: There is an age required to get a loan from Axis Bank, which is 21 to 65 years

  • Document Requirement: You have to submit proof of Rs. 2,50,000 (as per ITR for the last 2 years) for individual loans and a Minimum Cash Profit of Rs. 3,00,000 (as per ITR for the last 3 years), for non-individual loans. In addition, you must have proof of your owned property or r minimum of 12 months stability in rented space

  • Easy Apply: Candidates can check eligibility online and submit a request for the business loan easily on the Axis Bank’s website.

5. Bajaj Finserv Business Loan:

Bajaj Finserv various types of loan products to individuals or companies to fulfil their financial needs. They also work on minimal documentation. flexible repayment tenure. It is a private company that offers personal loans as well as business loan

Key Features of Business Loan

  • Loan Variant: There are three business loan variants- Term, Flexi Term, and Flexi Hybrid. All provide a good loan amount and repayment tenure.

  • Loan Amount: Bajaj Finserv provides loans up to Ra 80 lakh, according to various factors like turnover, credit score, etc.

  • Repayment Tenure: They provide extremely high repayment tenure from 1 year to 8 years in the business loan.

  • Interest rate: The interest rate varies from 9.75% to 39% per annum according to the loan amount and credit score with processing fees up to 3.54% of the loan amount

  • Eligibility Criteria: To apply for a Bajaj business loan, the candidate must be Indian with 3 years of business history, a 685 or above CIBIl score and be 24 to 80 years old.

  • Bajaj Finserv does not require any collateral or security like property, gold, etc.

  • Document: Candidates have to submit the KYC documents, PAN card, business proof, and other financial documents.

6. Tata Capital Business Loan:

 Tata Capital Business Loan is a competitive loan to provide financial support to small and medium-sized companies. Their competitive interest and flexible features are famous among Indians.

Key features of Tata Capital Business Loan-

  • Loan Amount: Candidates can get up to 90 Rs Lakh under Tata Capital Business Loan. There is no requirement for collateral or security in it.

  • Repayment Tenure: Tata Capital Business Loan provides a flexible tenure period to the client that is 12 to 60 months. It varies with the loan amount and interest rate. Fixed EMI plans are provided which is very easy for the candidate to pay.

  • Interest rate: Tata Capital Business Loan provides 12% per annum for professional loans and 15% per annum for non-professional loans.

  • Documents: The required document for Tata Capital Business Loan is a KYC document, business proof, income proof, six-month bank statement, 650 or more CIBIL Score, 3 years of profitability and 2 years of business stability.

  • Easy Apply: You can easily apply for the Tata Capital Business Loan. Visit their website and submit your details.

  • Age Required: Candidate must be 21 to 60 years old to get a Tata Capital Business Loan.

7. Kotak Mahindra Bank Business Loan:

Kotak Mahindra Bank provides business loans to small, medium and large companies. Their business loans offer financial help to companies which are Sole Proprietor, Private Ltd Co., Partnership firms, Trust, or LLP.

Key features of Kotak Mahindra Bank Business Loan

  • Age: The candidate’s age must be a minimum of 25 years and a maximum of 65 years old.

  • Loan Amount: Candidates can get 3 lakhs to 75 lakhs under Kotak Mahindra business loan.

  • Repayment Tenure: Flexible tenure provided with Kotak Bank, which is 48 months and easy EMI.

  • Interest Rate: Starting at 16% per annum is the interest rate of Kotak Mahindra Bank for business loans. Moreover, up to 2% of the loan amount is a processing fee and 5-6% is foreclosure charges.

  • Required Document: The candidate needs to submit the Identity proof, address proof, and Ownership proof. Business proof and firm constitution like GST registration certificate. Moreover, candidates at least have 3 years of business and a minimum of Rs 40 lakh turnover with 1 year of profit.

8. IDFC First Bank Business Loan:

IDFC First Bank provides business loans structured to meet various financial needs. It offers an amount ranging from RS. 1 lakh to Rs. 75 lakh. The interest rates are quite competitive starting from 14%. Documentation process is very simple with quick fund disbursal. It covers a wide spectrum of business loans. IDFC loans allow entrepreneurs to grow and take their business to new heights. 

Key features of IDFC First Bank Business Loan:

  • Loan Amount: IDFC First Bank offers business loans ranging from a minimum of Rs 1 lakh to a maximum of Rs 75 lakhs.
  • Interest Rate: The interest rates for IDFC First Bank business loans start from 14% onwards.
  • Flexible Tenure: The tenure for repayment ranges from 12 months to 84 months, giving borrowers ample time to repay the loan according to their financial capabilities.
  • Minimal Documentation: IDFC First Bank follows a simplified documentation process, ensuring quick disbursal of loans to businesses.
  • Eligibility Criteria: Eligibility criteria include factors such as business vintage, turnover, profitability, credit score, and others, which may vary based on the specific loan product.

9. PNB Business Loan

Punjab National Bank (PNB) caters to the personal and the business proprietor’s financial needs with a wide range of loan options. PNB provides Business loans on MSME loan interest rates. However interest rates may vary according to the loan amount, occupation, loan tenure, type of loan and individual’s credit history. 

Key features of PNB Business Loan:

Loan Amount: Punjab National Bank (PNB) offers business loans ranging from Rs 50,000 to Rs 10 crores, catering to the diverse financial needs of businesses.

Interest Rate: PNB offers competitive interest rates on business loans, making it an attractive option for borrowers.

Flexible Repayment Options: PNB provides flexible repayment options, allowing borrowers to choose a repayment tenure that suits their financial situation.

Minimal Documentation: PNB follows a streamlined documentation process, ensuring a hassle-free experience for borrowers applying for business loans.

Eligibility Criteria: Eligibility criteria for PNB business loans may include factors such as business vintage, turnover, credit score, and others, which may vary based on the specific loan product.

10. IndusInd Bank Business Loan

IndusInd Bank gives unsecured business loans at fixed interest rates of 13% – 22%. It provides loans for various purposes such as business expansion, working capital requirements for medium and long term etc. The interest rates are competitive and repayments are flexible with increased affordability and convenience. Application process is very easy. It covers a wide range of businesses to make them Excel in their fields. 

Key features of IndusInd Bank Business Loan:

Loan Amount: IndusInd Bank provides business loans starting from Rs 1 lakh up to Rs 50 lakhs, depending on the specific requirements of the business.

Interest Rate: The interest rates for IndusInd Bank business loans are competitive and vary based on factors such as loan amount, tenure, and credit profile of the borrower.

Flexible Tenure: IndusInd Bank offers flexible repayment tenure options, ranging from 12 months to 60 months, enabling borrowers to choose a tenure that suits their repayment capacity.

Easy Application Process: Businesses can easily apply for IndusInd Bank business loans online or by visiting a branch, making the process convenient and accessible.

Eligibility Criteria: Eligibility criteria for IndusInd Bank business loans may include factors such as business vintage, turnover, profitability, credit score, and others, which may vary based on the specific loan product.

FAQ(Frequently Asked Question) Business Loan

  • Which type of loan is best for business in India?
    Term loans are the best for business in India. This loan can be unsecured and secure. tenure will be fixed from 1-5 years.
  • Which Indian bank is best for business loans?
    HDFC Bank, Axis Bank, ICICI Bank, etc are the best for business loans in India. They have low interest rates, and offer good loan amounts without any collateral and security. The application process is also minimal.
  • Which loan is best to start a business?
    Working Capital Loan is the best way to start a business. Well, you can ask HDFC Bank, Axis Bank, and ICICI Bank too.
  • Can I get 50 lakh loan for business?
    Yes, you can get a 50 lakh loan for business easily. Many banks provide business loans easily like SBI Bank, HDFC Bank, ICICI Bank, etc.
  • Which loan is cheaper?
    It is said that Secured loans are good and affordable. They do not require collateral and offer low-interest rates with good loan amounts.
  • What is 50 lakh EMI for 5 years?
    If we assume an interest rate of 9% for 50 lakh for 5 years, then your EMI will be Rs 1,03,792. Well, there are many EMI Calculations online. You can check your EMI there easily.
  • What is the cibil score for 50 lakh loan?
    For a good loan amount, your CIBIl score should be 750 or more. Well, the requirement for CIBIl score varies from bank to bank.

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