RBL Bank Business Loan


RBL Bank offers loans for small and medium businesses. These loans can be secured or unsecured and start at 14% interest per year for up to 7 years. They help businesses with their day-to-day expenses and also provide funds for buying machinery, doing repairs, or expanding. The bank tries to give a decision on loan applications within about 15 days of receiving all the necessary paperwork. Additionally, women borrowers may get lower interest rates on certain types of loans.

RBL Bank Business Loan Highlights
Interest Rate
  • Small business loan: 20% to 26% p.a.
  • Business loan: 17.50% to 21.00% p.a.
  • MSME Loans: 21% to 25% p.a.
  • Small ticket secured business loans: 14% to 21% p.a.
  • Small ticket unsecured business loans: 24% to 26% p.a.
Loan Amount
  • Business loan: Up to Rs 35 lakh
  • Secured small business loan: Up to Rs 20 lakh
  • Unsecured small business loan: Up to Rs 10 lakh
Loan Tenure
  • Business loan: Up to 3 years
  • Secured small business loan: Up to 7 years
  • Unsecured small business loan: Up to 5 years

*Terms and conditions apply.

Table of Contents
RBL Bank Business Loan Interest Rates
Fees & Charges
Types of RBL Bank Business Loan
Eligibility Criteria
Documents Required
FAQs

RBL Bank Business Loan Interest Rates

RBL Bank offers business loans with interest rates ranging from 14% to 26% per annum. Here are the interest rates for various business loan schemes provided by RBL Bank:

Business loans

  • Up to Rs 25 lakh: 20.50%
  • Above Rs 25 lakh and up to Rs 35 lakh: 19.50%
  • Above Rs 35 lakh: 18.50%
  • Business loans for doctors: 17.50%
  • Business loan MCA (Merchant Cash Advance) above 15 lakh: 21%

MSME loans

For women borrowers:

  • Up to Rs 2.5 lakh: 23%
  • Above Rs 2.5 lakh and up to Rs 5 lakh: 22%
  • Above Rs 5 lakh and up to Rs 10 lakh: 21%

For other borrowers:

  • Up to Rs 2.5 lakh: 25%
  • Above Rs 2.5 lakh and up to Rs 5 lakh: 24%
  • Above Rs 5 lakh and up to Rs 10 lakh: 23%

Small business loans / Self-employed personal loans:

  • For loan amount less than Rs 5 lakh: 26%
  • For loan amount of Rs 5 lakh and above: 22.50%
  • Business instalment loans for doctors: 20%
  • For MCA of up to Rs 5 lakh: 25%
  • For MCA above Rs 5 lakh and below Rs 15 lakh: 21.50%

Small ticket unsecured business loans

For women borrowers:

  • Up to Rs 2.5 lakh: 25%
  • Above Rs 2.5 lakh and up to Rs 5 lakh: 24%

For other borrowers:

  • Up to Rs 2.5 lakh: 26%
  • Above Rs 2.5 lakh and up to Rs 5 lakh: 26%

Small ticket secured business loans – liquid collateral and property

For women borrowers:

  • Rs 5 lakh to Rs 10 lakh: 19%
  • Above Rs 10 lakh and up to Rs 15 lakh: 18%
  • Above Rs 15 lakh and up to Rs 20 lakh: 17%
  • Above Rs 20 lakh and up to Rs 25 lakh: 15%
  • Above Rs 25 lakh and up to Rs 35 lakh (Top up): 15%
  • Above Rs 25 lakh and up to Rs 50 lakh (Micro LAP): 14%

For other borrowers:

  • Rs 5 lakh to Rs 10 lakh: 21%
  • Above Rs 10 lakh and up to Rs 15 lakh: 20%
  • Above Rs 15 lakh and up to Rs 20 lakh: 19%
  • Above Rs 20 lakh and up to Rs 25 lakh: 17%
  • Above Rs 25 lakh and up to Rs 35 lakh (Top up): 17%
  • Above Rs 25 lakh and up to Rs 50 lakh (Micro LAP): 15%

Also read: Best Business Loan Interest Rate

 

Fees and Charges for Business Loans from RBL Bank

Here are the fees and charges associated with availing RBL Bank Business Loans:

Business Loans and Small Business Loans

Particulars Concessions
Processing Fees
  • 2.5% of Loan amount for Business Loans (loan amount greater than Rs 25 lakh)
  • 3% of Loan amount for small business Loans (Rs 5 lakh to Rs 25 lakh)

(No processing fee applicable for small business loans below Rs 5 lakh)
Documentation charges Rs 7,000 for small business loans below Rs 5 lakh
Charges for late payment of EMI 2% additional interest per month on overdue EMI amount
Issue of duplicate interest & principal certificate Rs 250 per instance
Cheque swapping charges Rs 250 per instance
Bounce cheque charges Rs 250 per instance
NACH bounce charges for EDI (Equated Daily instalment) products Rs 50 per instance
Charges for CIBIL report Rs 50 per instance
Foreclosure charges (EMI based product)
  • No foreclosure permitted before repayment of 6 EMIs
  • On payment of 7 to 18 EMIs – 5% of principal outstanding
  • On payment of more than 18 EMIs – 3% of principal outstanding

Note: The foreclosure charges are not applicable for facility sanctioned to MSMEs with floating interest rate loans and for fixed interest rate loans with loan amounts of up to Rs 50 lakh
Foreclosure charges (EDI based product)
  • No prepayment or foreclosure permitted before payment of 180 EDIs
  • On payment of 181 to 550 EDIs – 5% of principal outstanding
  • On payment of 550 EDIs – 3% of principal outstanding

Note: The foreclosure charges are not applicable to facility sanctioned to MSMEs with Floating interest rate loans and fixed interest rate loans with loan amounts of up to Rs 50 lakh

Also read: Best Business Loan EMI Calculator

Types of Business Loans provided by RBL Bank

RBL Bank Business Loan

Purpose: This unsecured loan assists business units in securing funds for their working capital needs and financing their business expansion efforts.

Loan Amount: Rs 10 lakh to Rs 35 lakh

Loan tenure: 1 to 3 years

RBL Bank Secured Small Business Loan

Purpose: RBL Bank offers secured loans to individuals, proprietors, and partnership firms to fulfill their working capital requirements, purchase machinery, and undertake repairs or renovations for existing business units. The bank accepts residential and commercial properties as collateral. Business assessments are conducted based on bank statements, income tax returns (ITR), value-added tax (VAT) payments, and official bills.

Loan amount: Up to Rs 20 lakh

Loan tenure: 1 to 7 years

RBL Bank Unsecured Small Business Loan

Purpose: RBL Bank offers collateral-free loans to individuals, proprietors, and partnership firms to assist them with their credit needs.

Loan amount: Up to Rs 10 lakh

Loan tenure: 1 to 5 years

RBL Bank Working Capital Finance

Purpose: RBL Bank offers working capital finance loans to business units, enabling them to manage their daily expenses and monthly commitments such as salaries and utility bills. The bank provides various facilities including cash credit, overdraft, export credit, bank guarantee, buyer’s credit, and letter of credit as part of this business loan facility.

RBL Bank Business Loan Eligibility Criteria

Eligibility criteria for this business loan variant are as follows:

  • Age: 27 years (at the time of loan application) to 65 years (at loan maturity).
  • Minimum 5 years of experience required in the same line of business with a minimum of 3 years of business establishment & operation in the same city. Self-employed professionals need a minimum of 4 years of post-qualification experience.
  • Self-employed individuals & professionals, sole proprietorships, partnership firms, and private limited companies (including closely-held public limited companies) with a profitable business for the past 3 years are eligible.
  • The minimum business turnover required for this unsecured business loan is Rs 1 crore. The loan applicant’s gross receipts for the professional or service sector should be at least Rs 60 lakh.
  • The ownership of the residence/office should be in the individual applicant’s name or jointly with family members, or the applicant should reside in the residence owned by an immediate family member.

Also read: Best Business Loan Eligibility

Documents required for RBL Bank Business Loan

The documents required for availing different types of RBL Bank business loan schemes are as follows:

RBL Bank Business Loan

  • Passport size photographs of all applicants and co-applicants.
  • PAN Card: For individual, partnership firm, or company.
  • Identity proof (any one): Voter ID, Driving License, Passport, Aadhar Card, etc.
  • Address proof (any one): Voter ID, Passport, telephone/electricity bill, registered lease deed or sale agreement, bank statement, Driving License, etc.
  • Ownership proof of residence/office in the name of the loan applicant or jointly with family members.
  • Proof of business continuity: Any one document dated 5 years old (bank statement, sales tax challans, Income Tax Returns (ITR), Shops & Establishment certificate, Certificate of Incorporation or Partnership Deed).
  • Letter certifying the end use of the business loan funds on business letterhead.

For self-employed individuals/professionals and sole proprietorships

  • Last 6 months bank statements from the borrower’s main account/s and last 3 months bank statements of all other bank accounts mentioned in the Balance Sheet.
  • Latest audited Income Tax Returns (ITR) and financials of the last 2 years (Profit & Loss A/c., Balance Sheet, and computation of income along with all schedules).
  • Professional certificate of qualification and degree certificate for doctors, architects, Chartered Accountants, etc. (for self-employed professionals only).

For partnership firms/private limited companies

  • Memorandum of Association (MOA), Articles of Association (AOA), Certificate of Incorporation (COI), and Board Resolution from the company.
  • Latest shareholding patterns for private/public ltd. companies.
  • Latest audited Income Tax Returns (ITR) and financials of the last 2 years (Profit & Loss A/c., Balance Sheet, computation of income along with all schedules).
  • Bank statements from the main account/s for the last 6 months and 3 months of all other bank accounts mentioned in the Balance Sheet.
  • Partnership authority letter and partnership deed for partnership firms.

Also Read :  Best Business Loan Documents Required

Frequently Asked Questions

Yes, it's possible to get your bike financed even as a student if you meet the specific eligibility criteria set by the lenders.

The best loan for financing your bike or scooter is the one with the lowest interest rate. This way, you'll have to pay less in monthly installments (EMIs) throughout your loan term.

To get financing for your motorcycle, bike, or scooter, you can easily apply for the loan online from home. Or, if you prefer, you can go directly to a bike shop and apply for the loan there by giving them the documents they need

You can check your loan status online through internet banking. Another option is to visit the closest branch of the bank or financial institution that's providing the loan.

Many lenders consider a credit score of 620 and above to be good when giving out loans for motorcycles, superbikes, or scooters. However, if your credit score is lower than 620, you can still find lenders who may be willing to give you a loan, although they might charge a higher interest rate.

Banks allow you to make prepayments after successfully paying 3-6 EMIs. Depending on the number of EMIs you've already paid, there might be a small fee applicable on the outstanding amount when you choose to prepay.