Business Loan

HDFC Bank Business Loan

HDFC Bank provides business loans that can be secured or unsecured, starting from 10% per annum. You can borrow up to Rs 3 crore for a period of up to 7 years. This is available for self-employed individuals and businesses.

Kotak Mahindra Bank Business Loan

Kotak Mahindra Bank provides different types of business loans, such as Healthcare Finance Solutions, Commercial Vehicle Loans, Construction Equipment Loan, Farm Equipment Loan, Loan Against Property, and more. They also have various working capital business loan options to help finance the needs of businesses.

ICICI Bank Business Loan

ICICI Bank provides secured and unsecured business loans for importers, exporters, new entities, and businesses without audited financials. The business loan interest rates at ICICI Bank start from 17% per annum, and you can choose a tenure of up to 7 years.

Axis Bank Business Loan

Axis Bank offers business loan interest rates starting from 10.75% per annum, and you can choose a tenure of up to 15 years. Business loan applicants from Axis Bank can borrow amounts of up to Rs 10 crore. Additionally, the bank provides bills of exchange and Letter of Credit services to its business loan applicants.

Tata Capital Business Loan

Tata Capital provides different business loan products for self-employed individuals and businesses, offering flexible tenures of up to 9 years. The NBFC offers business loans with a hassle-free process with quick approval, minimal documentation, and swift disbursal of business loans.

Lendingkart Finance Business Loan

Lendingkart provides business loans starting from 12% per annum to meet the financial needs of its applicants. The NBFC uses machine learning tools and proprietary big data to determine business loan interest rates. Lendingkart also employs data technology tools and business analytics to assess the applications of its business loan applicants.

IDFC First Bank Business Loan

IDFC First Bank provides business loans for up to 20 years to support the business and working capital needs of self-employed individuals, professionals, hospitals, diagnostic centers, MSMEs, traders, and manufacturers. The bank also has a special Gold Card Working Capital Loan Scheme lasting up to 3 years, offering easy access to export credit, automatically renewed each year.

Bajaj Finance Limited Business Loan

Bajaj Finance provides both secured and unsecured loans for financing different business activities such as buying machinery, restocking inventory, renovating office space, expanding the business, and meeting working capital needs. The NBFC also offers pre-approved business loans to both existing and new customers.

HDB Financial Services Business Loan

HDB offers unsecured business loans starting from 8% per annum to support various business-related activities. The lender extends these loans to Doctors, MSMEs, medical practitioners, chartered accountants, sole proprietors, partners, directors in manufacturing, trading, service businesses, and private companies or partnership firms.

U GRO Capital Limited Business Loan

U GRO Capital provides secured and unsecured business loans for micro, small, and medium enterprises. The NBFC offers business loans starting from 9% per annum, with a tenure of up to 10 years.

• Banks and NBFCs provide secured and unsecured business loans.
• Some banks and NBFCs allow existing business loan customers to get extra funds through top-up loans.
• Business loan interest rates depend on the applicant's credit profile, nature of business, type of loan, and collateral.
• Quick approval, minimal paperwork, and swift disbursal are key features when applying for business loans online.
• Many lenders offer overdraft facilities to existing business loan customers.
• Both existing and new customers can apply for pre-approved business loans with quick disbursal and less paperwork.
• Some lenders offer special, lower interest rates for women borrowers.
• Applying for business loans online is easy, with quick approval and minimal documentation.

Also read: Best Business Loan EMI Calculator

• Age - 21 years at the time of loan application and 65 years at the time of loan maturity (may vary across lenders).
• Minimum Business Vintage - 3 years (may be 5 years for some lenders).
• Minimum Business Turnover - Rs 90,000 to more than Rs 250 crore.
• Credit Score - 750 or above (some lenders may offer business loans to applicants having lower credit scores).
• Minimum Income - Rs 1 lakh p.a.
• Eligible Entities - Proprietors, Limited Liability Partnership firms, Private Limited Companies, Public Limited Companies, self-employed individuals, self-employed professionals (doctors, CA, CS, architect, etc.) individual corporations, MSMEs etc.

Also read: Best Business Loan Eligibility

• PAN Card for partnership firms, individuals, and companies
• ID Proof - Passport, Aadhar Card, Voter ID, Driving License
• Age Proof - Aadhar card, PAN card, Passport, Birth certificate, etc.
• Address Proof - Telephone/electricity bill, Voter ID, Passport, Bank Statement, Driving License, registered lease deed or sale agreement, NREGA Card
• Ownership proof of residence or office
• Business continuity proof
• Business registration proof
• Copy of company’s PAN card
• Latest GST returns
• Bank statement for the last 6 months
• Latest ITR along with income computation, B/S, P&L account for the last 2 years certified by a CA
• Sole proprietor declaration or certificate
• Partnership deed copy
• Certified copy of MOA, AOA, and Board Resolution
• Passport size photographs

Also Read :  Best Business Loan Documents Required

• Secured Term Loans- Secured Term Loans are loans that need something valuable as a guarantee, like mortgage of immovable property, business assets, or financial securities, from the person applying for the loan.
• Unsecured Term Loans- Lenders offer Unsecured Term Loans to MSMEs to meet their business requirements, such as expansion of operations, technology upgradation and meeting the cash flow requirements, without any collateral/security
• Secured Overdraft Business Loans- Banks give a special type of loan called Secured Overdraft Business Loans to their customers who already have accounts with them. These loans help businesses with their daily expenses and money needs. The credit line facility is offered against industrial property, /residential/commercial financial securities like LIC Policies, KVP/NSC, Mutual Funds, Fixed Deposits etc.
• Unsecured Overdraft Business Loans- An Unsecured Overdraft Business Loan is a type of loan that doesn't require any collateral. It allows business owners to withdraw money from their current business accounts up to a set limit, even if the account balance is zero.
• Professional Business Loans- Business loans for self-employed professionals, like doctors, architects, and accountants, are available to help them with various business needs. Whether it's expanding their practice, buying office space, getting new equipment, or stocking up on supplies, these loans cater to the financial requirements of self-employed professionals.
• Machinery Finance- Machinery finance is a type of loan that enables individuals to buy machinery and equipment for their business needs.
• Purchase Financing- Lenders provide purchase finance to help manufacturers, traders, and service providers pay for the raw materials and goods they buy from suppliers.
• Merchant Cash Advance/Point of Sales- This type of loan is designed for small and medium-sized businesses involved in online sales or using Point of Sale (POS) machines. Repayments are automatically deducted from their online sales or transactions made through POS machines.
• Working Capital Loans- Lenders provide working capital loans to support the everyday needs of businesses, such as buying raw materials and covering wage payments.
• Letter of Credit- A Letter of Credit (LC) is a payment assurance provided by a lender, helping businesses involved in international trade reduce their credit risk.
• Bill Discounting- Bill discounting helps businesses get quick cash for their unpaid bills. When a business gives its invoice to the lender, the lender pays a certain amount upfront after taking a small fee. Later, the lender collects the full payment from the business's customer on the due date. If there's any delay, the business or the customer may need to pay an agreed-upon interest to the bank or NBFC.

Several popular loan schemes are available, such as MUDRA Yojana under PMMY, SIDBI loan, Startup India, CGTMSE, PMEGP, Standup India, psbloansin59minutes.com, NSIC, NABARD, and more.

If you're getting a short-term loan, it's best to aim for a repayment within 12 months. But if you need a larger loan, you can extend the repayment period up to 5 years, depending on your business needs.

Pre-closure and part-payment charges differ among lenders. Some banks may have no charges, while others could go up to 5% of the loan amount. Make sure to verify these terms with your specific lender.

Lenders set the minimum annual turnover criteria, and these requirements differ from one bank to another.

GST (Goods and Services Tax) is crucial when applying for business loans. Paying higher GST indicates a larger business volume. Therefore, it becomes easy for banks to rely on such applicants or borrowers that pay their GST.

If your credit score is 750 or higher, financial institutions see it as good. The highest possible score is 900, and lenders like scores closer to that the most.