Business Loan

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Unlock Best Business Loan Offers From 30+ Lenders


Banks and NBFCs provide two types of Business Loans: secured and unsecured. These loans help MSME borrowers, self-employed individuals, and professionals finance their business activities. MybankingTips lets people compare features and interest rates from top lenders. Applicants can easily apply online for the best-suited options based on their credit profiles.

The interest rates for business loans can vary from one lender to another. This depends on factors like the applicant's credit history, the chosen loan type, the type of business, and the collateral provided. Here are the interest rates offered by popular business loan lenders.

Comparison Table of Business Loan Interest Rates offered by MybankingTips Partners:

Bank/NBFC/Fintech Interest Rate
SBI Bank 9.10% p.a. Apply Now
HDFC Bank 10.00% - 22.50% p.a. Apply Now
Kotak Mahindra Bank 16% p.a. onwards Apply Now
RBL Bank 14%-26% p.a. Apply Now
ICICI Bank Up to 17% p.a. Apply Now
Axis Bank 10.75% p.a. Apply Now
IDBI Bank 8.05% to 13.45% p.a Apply Now
Bank Of Baroda 10% to 15% p.a Apply Now
Ujjivan Small Bank Up to 2.50% Apply Now
Bajaj Finserv 9.75% - 25% p.a. Apply Now
IIFL Finance 12.75% - 44% p.a. Apply Now
FlexiLoans 1% per month onwards Apply Now
ZipLoan 1% - 1.5% per month (Flat) Apply Now
Indifi Finance 1.5% per month onwards Apply Now
Five Star Business Finance Up to 2% Apply Now
Lendingkart Finance 1.25% per month onwards Apply Now
Tata Capital Finance 12% p.a. onwards Apply Now
NeoGrowth Finance 15% p.a. onwards Apply Now
Hero FinCorp Up to 26% p.a. Apply Now
Aye Finance Up to 2.5% Apply Now
Clix Capital Up to 3% Apply Now
Protium Finance Up to 1.5% Apply Now
HDB Finance 8% - 26% p.a. Apply Now
U GRO Capital Up to 9% p.a. Apply Now
Mcapital Business Up to 2% p.a. Apply Now

Note: Business Loan Interest Rates are updated as of January 2024.

Also read: Best Business Loan Interest Rate

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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.

Interest Rate 10% p.a. onwards
Loan Amount Up to Rs 3 crore
Tenure Up to 7 years
Processing Fee Up to 2% of loan amount

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.

Interest Rate 16% p.a. onwards
Loan Amount Based on the applicant’s credit profile
Tenure Up to 7 years
Processing Fee Up to 2% of loan amount

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.

Interest Rate Up to 17% p.a.
Loan Amount Up to Rs 10 crore
Tenure Up to 7 years
Processing Fee Up to 2% of loan amount

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.

Interest Rate 10.75% p.a. onwards
Loan Amount Up to Rs 10 crore
Tenure Up to 15 years
Processing Fee Up to 2% of loan amount
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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.

Interest Rate 12% p.a. onwards
Loan Amount Up to Rs 2 crore
Tenure Up to 9 years
Processing Fee Up to 2.75% of loan amount

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.

Interest Rate 1.25% per month onwards
Loan Amount Up to Rs 2 crore
Tenure Up to 3 years
Processing Fee 2%-3%

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.

Interest Rate 10.50% p.a. onwards
Loan Amount Depending on the applicant’s profile
Tenure Up to 20 years
Processing Fee Up to 3.5%

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.

Interest Rate 9.75% to 30% p.a.
Loan Amount Up to Rs 80 lakh
Tenure Up to 12 years
Processing Fee Up to 2.95%
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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.

Interest Rate 8%-26% p.a.
Loan Amount As per applicant’s profile
Tenure Up to 5 years

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.

Interest Rate 9% to 36% p.a.
Loan Amount Up to Rs 5 crore
Loan Tenure Up to 10 years
Processing Fee Up to 4% of loan amount sanctioned

  • 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

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  • 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

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  • 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

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  • 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.

1. What are the loan schemes initiated by the Government of India?

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

2. How to choose the ideal repayment tenor for business loans?

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.

3. What are the pre-closure and part-prepayment charges in business loans?

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.

4. What is the minimum turnover requirement for a loan to start a business?

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

5. What is the impact of GST on business loans for new businesses?

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.

6. What is a good credit score to get instant business loans?

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.

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