If you wish to commence a new business, expand the current project or buy new equipment but have limited or no funds, business loans can be one of the best options for you. It is an excellent way of increasing financing towards multiple business requirements. Business loans are created to aid small businesses and entrepreneurs in meeting their capital needs.
Few banks offer higher loans without any pre-approved offers and collateral. This is the cost that is paid with a particular rate of interest and for a definite period. It has become tough to get a business loan with the recent banking situation, but various banks offer this facility with ease.
A lot of banks offer loans up to 30 lakhs with and without collateral with pre-approved offers; you would just have to pay a fixed percentage of interest. But, choosing the right bank as per your requirements can be challenging, don’t worry; here in this blog, you would be able to know about the top Business Loan providers in India that would make it easy for you to pick.
Best Banks for Business Loan in India
Purpose of Getting a Business Loan
Different people have different reasons for taking a business loan, let us have a look at the primary reasons-
- For expansion business
- For expanding business location
- For starting a new venture
- To collate credit for future needs
- To buy equipment for Business
- For purchasing more inventories
- For getting new employees to the Business
Types of Business Loan
There are various types of business loans, depending on your requirements. Some of the significant ones are:
1) Term Loans: If the borrower opts for term loans, they have two options: secured and unsecured loans:
- Secured loans- These are loans taken against some type of personal guarantee or any valuable asset as a Mortgage.
- Unsecured loans- Businessmen usually prefer taking unsecured loans because no collateral is required as they are short-term loans that range from 5 to 15 days.
2) Overdraft facility: When you talk about a business loan in India, this is one of the first options that come to their mind. In this type of loan, businessmen can get a considerable amount of money than the amount present in their account as a loan for meeting their business requirements. The sum you can withdraw, interest rate, and span would depend on a mutual consensus between the bank and borrower.
3) Demand loans: If the businessman takes a demand loan for financial requirements, he would have to repay the amount whenever the bank or non-banking financial company (NBFC) asks for it. They can be both secured and unsecured loans. Demand Loans are best for meeting short-term financial needs as the maximum term for this loan type is 12 months; the merchant can also get it reviewed if the bank agrees.
4) Letter of credit facility: You can apply for this financing scheme based on the bank’s creditworthiness; this arises when the buyer and seller do not know each other, such as international trade transactions.
5) Loan against securities: As the name suggests, you can get a loan against financial securities that are authorized by the bank, such as mutual funds, property, gold, insurance policies, maturity plans, Demat shares, savings bonds, etc.
6) Cash credit facility: It is an overdraft loan that businessmen can get to finance the requirements of working capital by providing its current assets like inventory, receivable, etc., as collateral. The amount you would get would depend on the stock margins fixed by the bank and the tenure time is 12 months that can be renewed if the bank agrees.
7) Business loans for women entrepreneurs: For supporting women empowerment, many banks and NBFC’s provide distinctive loan schemes for existing and potential women entrepreneurs. Women can avail of many benefits and discounts on the interest rate, security, and time from these existing schemes. But these loans are only for females who hold over 50% of the shares of the company.
8) Bank guarantee: You can get this pre-approved secured loan by giving residential, commercial, or industrial property as a guarantee, whether you hold a public/private limited company or proprietorship/partnership firm. With the help of this loan, companies get down loans, purchase equipment if required, and cover any additional expenses that would aid the business is flourishing.
In a bank guarantee, the merchant vows to pay the guaranteed business’s stakeholders in case it defaults.
These were some of the loan types, and you can get them from the best banks for business loans in India.
Also Read: 10 Best Demat and Trading Account in India
Features of business loans
Before applying for a business loan, it is paramount for you to know the features:
1) The approval of the business loan depends on multiple factors such as the revenue that it makes yearly, an estimate of the business, and the number of years it has been operational.
2) If you need to obtain a business loan, it is essential for you to examine all your options and then pick one.
3) Banks and financial institutions that grant business loans render their customers with the extensibility of doorstep service. Furthermore, numerous top business loan providers in India mostly don’t demand any deposit, guarantor, or collateral from the appellant.
4) Unsecured business loans offer businesses to finance their specific necessities and pay their loan value in easy monthly installments. You can avail of these loans for a plethora of purposes, including but not confined to business extensions, working capital, etc.
5) Business loans appear with the numerous advantages of services that you should always double-check before applying for the loan, such as SMS, Web Chat, Phone Banking, etc. Moreover, a lot of banks have even extended to exquisite higher loan amounts for their self-employed customer base.
6) Nowadays, many banks give their customers the facility of getting business loan eligibility in just a couple of minutes. They can apply for the loan either online or in any of their nearest branches. Quick approvals ensure that customers don’t spend time waiting to get a reply from banks about the situation of their loan requests.
|Interest Charged||Monthly in arrears|
|Interest Rate||Fixed or variable|
|Interest Only Option||Yes|
|Maximum Loan||80% of the 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|
|Internet Banking Access||Yes|
Benefits of Business Loan
Undoubtedly, business loans offer numerous benefits to people who need funds for different business requirements. The reason why people should choose this option is that:
1) Accessible & Convenient: One of the best features of banks is that they are accessible. It is an important factor, plus you would require regular conversions, depositing savings, and withdrawals. These days online banking is also available, which has made things even simpler. You can submit your documents online, make transfers and get the EMI direct debit from your account.
2) Various loan options: Top business loan providers in India offer multiple types of programs and schemes for motivating business people to use them for their various requirements. You can opt for any options that you think are best as per your business needs as the banks are keener on checking your financial background; if you pass the credit test, you would get the loan within a couple of minutes.
3) Non-Profit sharing: Venture capitalists and angel investors consent to grant a loan with the deal of having partial ownership of the business. This means that they will get some right to powers of the business and in decision-making; furthermore, they will share the business’s profits.
On the contrary, a few banks don’t get involved in your business money; all the money you make through business is entirely yours. The bank would have no share in profits or loss of the business. Banks approve a loan for getting their interest and partial loan-payment installments.
4) Lower Rates of Interest: Banks have relatively lower interest rates than other lending agencies, using credit cards, etc.
5) Tax Benefits: Businesses that opt for loans also get tax benefits as a portion of the revenue you earn is used for repaying the loan; hence you get a rebate in tax.
6) Business loan comparison from different banks: Before deciding to choose the bank, always compare it with other banks and NBCFs. The other factors you should look upon are interest rate, processing fee, EMI, eligibility criteria, minimum requirement criteria, etc.
Things to Consider When Applying for a Business Loan
Before applying for a business loan, you should consider a few things about your business needs and banks. Here are some of the significant factors that you should always check on before applying for the loan:
1. Calculate the business requirements: Before applying for the loan, always check and calculate your funding requirements and then apply for a loan. It is better not to borrow a loan for more than what you require, as it becomes tough at the time of repayment.
2. Research: Always do proper research on the types of business loans available and see which one suits your business needs. Check the repayment options, tenure, interest rate, EMI options, etc., and then choose accordingly.
3. Credit Score: Always check your credit score before applying, as it would clearly show you your creditworthiness. If you have a great credit score, it raises the possibility of your loan getting passed and vice versa. For example, it is advisable to have a credit score of 750 to get the loan approved; this score would also help get the loan for a more considerable amount. So, check the score and take steps to make it better.
4. Repayment terms: When you take a loan, you would have to repay it through EMI’s; thus, you should always take repayment capacity into account and then choose the loan tenure and the amount of EMI. Ensure that you never miss out on paying any EMI, as that can lead to a decline in your credit score.
5. Charges: A few changes are levied when you take business loans, such as interest rate, processing fee, default fee, documentation charges, pre-closure fee, etc., so examine all the charges and see how they change the cost of your loan.
These were some of the important factors that you should always check on before taking a business loan in India.
Also Read: List of Nationalized Banks in India
Factors that affect Business Loan Interest Rates
You might have seen a lot of times that the interest rate on business loans varies from Business to Business. Do you know why? Here is a brief explanation for you:
1. Nature of Business: When you apply for a loan, most banks classify loans under the Priority and Non-Priority Sector. Loans that come under the Non-Priority sector have to pay a high-interest rate compared to the Priority Loans.
2. Business Existence: If your Business has been in the market for more than 10 years, it can be of enormous benefit as the longer your existence, the better it is for you. But, for getting a business loan, the minimum operation of 2 years is essential.
3. Monthly Turnover: After looking at your monthly turnover, banks or the shareholders can gauge whether you are making profits or losses. This is the important constituent for deciding your eligibility to avail of a business loan. Therefore, maintaining consistency is very important as it would help determine the loan amount, interest rate, and repayment terms.
4. Credit Score: As mentioned above, a credit score would tell your creditworthiness as it is based on your credit history. For example, if you previously took a loan and paid all the EMI and amount in time, you will have a good credit score, and your new loan would also get approved quickly. Also, a good credit score helps to lower your interest rate and to get flexible repayment terms.
5. Collateral: In a few bank loans, you would have to put some security for getting the loan. So, the more the collateral value, the more are the chances of getting a loan at a lower interest rate.
6. Type of Lender: Interest rates also vary from lender to lender. But, it has been observed that banks offer business loans at relatively lower interest rates than NBFC’s and other financial institutions.
Business Loan Eligibility Criteria
It is substantial for you to check the eligibility criteria of the bank before applying for the business loan:
|Age Criteria||Min. 18 years and Max. 65 years|
|Eligible Entities||Individuals, SMEs, MSMEs, Sole Proprietorship, Partnership firms, public and private limited companies, limited liability partnerships, retailers, traders, manufacturers engaged in only services, trading, and manufacturing sectors|
|Business Vintage||Min. 2 years and in profit|
|Business experience||Min. 2 years, business location to remain same|
|Annual Turnover||Min. Rs. 10 lakh and above for existing enterprises|
|CIBIL Score||700 or above|
|Nationality||Indian citizens, should not have defaulted on any previous loan(s)|
|Additional Criteria||Applicant must own either a residence, office, shop, or go down.|
- Partnership or Proprietorship Firm must have a minimum stake of 25%
- Chartered Accountant / Self Employed Individual must have a diploma or degree in any discipline
- Self-employed professionals comprise doctors, chartered accountants, company secretaries, architects, etc. This is directed to the applicants who have proof of qualifications and also are practicing their profession.
- Self-employed non-professionals comprise traders, manufacturers, etc.
- Entities encompass partnerships, private limited companies, limited liability partnerships, closely-held limited companies, etc.
- The Income Tax Return for the last 1 year should have been filed.
- Banks may offer business loans to only certain cities and towns.
Documents required for applying for a Business Loan
The banks do document verification to ensure that the customers meet the business loan eligibility criteria stated by the respective bank. To apply for a business loan, you will need the following documents:
- Identity Proof- Copy of Aadhar Card, Passport copy, Driving License, and Voter’s ID copy
- PAN card for company, firm, or individual
- Duly filled application form with Passport-sized Photographs
- Resident Proof- Utility Bills of the last 3 months
- Bank statement of the last 6 months
- Proof of stability of the business for self-employed individuals
- Salary slip of the last 3 months for salaried individuals
- Latest ITR along with the computation of income, Balance Sheet, Income & Profit & Loss a/c for the last 2 yrs. (All financials must be CA certified or audited)
- Sole Proprietorship Declaration or a Certified true copy of Memorandum & Articles of Association of Business Ownership
- Any other document required by the lender
How to apply for a Business Loan?
These days applying for a loan have become pretty quick and easy. If you submit the documents and meet the eligibility criterion, the amount will be credited to your account within a couple of days. Here are a few steps on how to apply for a business loan in India:
1) You can apply for the loan in both ways, i.e., online and offline. There are a lot of well-known banks that give the option of applying for the loan straight away from their official website. For applying for the loan online, go to the website of the bank from which you wish to take the loan, click on the tab loan and select the option “Apply Now.”
2) It will redirect you to another webpage, where you would have to fill the application form. You would have to fill in your name, age, phone number, city of your residence, details about your Business, email address, etc.
3) Once you fill in the required information, enter the submit button for submitting the application form. Within 2 to 3 days, a representative from the bank will contact you with your request.
4) You can also go to the nearest bank or financial institution branch if you wish to apply offline. In this case, you would have to provide the loan application form and the needed supporting papers at the branch.
5) As soon as the bank confirms your loan application and documents, the loan amount will be transferred to your account within a couple of days.
The loan application process has become straightforward nowadays, so you can use this facility if your business needs funds. But, the point is which bank to choose as all of them claim to be the best.
Also Read: List of Commercial Banks in India
11 Best Banks for Business Loans in India
After doing a lot of research, this list of best banks in India for a business loan has been made so that it becomes easier for you to pick one:
1) HDFC Bank Business Loan
It is one of the best banks in India; they provide business loans for up to Rs.40 lakhs without any collateral, guarantor, or need of security. They have an easy and quick approval method, plus they also provide attractive offers for its customer.
- A loan balance transfer facility is granted.
- Pre-payment of the loan is permitted after 6 EMIs are paid.
- Their interest rate ranged from 15.00% to 21.20% yearly
- You can check eligibility either online or at an HDFC Bank branch in just a couple of seconds.
- The last two years of the business must be the profit-building years
- 1.5 lakhs must be the minimum annual income of the business as per ITR
- Gives a repayment period of 12 months – 48 months.
- Minimum Loan Amount:₹ 50,000
- Maximum Loan Amount:₹ 5,000,000
- Minimum Tenure Period:1 year
- Maximum Tenure Period:4 year
- Minimum experience of individuals in business must be 5 years, with 3 years in the current business.
- Late EMI interest: 2% per month on the delayed amount and a minimum fee of Rs.200
- Processing Fees & Charges: Up to 2.50% + GST as applicable
- Pre-payment charges: 2% when the loan is settled after 36 months.
- Stamp duties:
- ₹550 is charged when a check is bounced.
- Cheque swapping charges: Rs.500
- Pre-payment charges of 4% if the loan is closed between 7 months – 24 months
- Pre-payment charges of 3% if the loan is closed between 25 months – 36 months
- Amortization schedule charges: Rs.200
2) SBI Simplified Small Business Loan
It is the largest public sector bank in India that has more than 24000 bank branches and over 59000 ATMs across the country. Their primary aim behind offering business loans is to support small businesses create their current assets and fixed assets.
- Business owners, professionals, and self-employed individuals can apply for this loan
- A minimum amount of loan that MSME can take is Rs.10 lakh, and the maximum is Rs.52 lakhs
- They need
- a minimum 40% of the collateral and the interest of it is combined to the Marginal Cost of Funds based Lending Rate)
- You should have a minimum of 5 years of business existence
- It is a mandate to have a current account at any bank for the last 2 years
- You should show a minimum average monthly balance of Rs. 1 Lakh
- Repayment Tenure- 5 years to 15 years
- The repayment duration of SBI simplified small business loans is up to 60 months.
- Processing Fee: 1% of the loan amount, max up to Rs 10 Lakh
- Interest Rate: 9.05% – 16.30% (Linked to MCLR)
- The entire fee for processing fees, inspection charges, documentation charges, remittance charges, and commitment charges is just Rs.7,500.
3) ICICI Bank Business Loan
It is one of the biggest Private Banks in India and can be an excellent option for loan seekers. Their loan structure is made in such a way that it is convenient for choosing the option that suits the business needs effectively for customers.
- ICICI Bank obeys an excellent documentation method making repayment manageable and straightforward
- The business loan from ICICI could be availed as working capital, term loans, or composite loan
- They provide a loan of up to ₹2 Crore
- Minimum Loan Amount: Rs 1 Lakh and maximum loan amount is Rs.40 lakhs
- The maximum duration in which you have to repay the business loan is 7 years
- Dedicated relationship managers to give comprehensive financial solutions
- You also get an overdraft facility under this scheme
- An ICICI business loan conditions include the last one-year income tax return, audited financials of the last 3 years, and current year performance and turnover. Plus, you also need to provide the bank statements for the latter 6 months
- Quick and trouble-free renewals with minimum documentation
- It charges an interest rate based on the repo rate. The current repo rate is 4%, which means the rate of interest is 10% to 11.10%
- Processing fee: Up to 2% on the loan amount
- Guarantee fee: 0.75% – 0.85% for women enterprises in the North Eastern Region and 15 for others
- Foreclosure Charges- To be priced as per the terms and conditions mentioned in the sanction letter.
Also Read: Different Types of Banks in India
4) Axis Bank Business Loan
They offer loans at competitive interest rates and are well-known for their convenient services. They render business loans to professionals like engineers, doctors, CA’s for practicing their service, office space, or purchasing equipment.
- For getting the business loan from Axis Bank it is mandated to have a minimum annual turnover of 30 Lakhs
- It is essential to have a business running experience of a minimum of 3 years
- The repayment period is a maximum of 15 years
- The business must be a partnership, proprietorship, LLP, Pvt. Ltd, Company business.
- You can get a loan from Rs.50000 to a maximum amount of Rs 50 lakhs
- The bank determines the interest rate based on your business profile, financial assessments, former track record, and tenure.
- You must be of the age group 21 to 65 years to take a business loan.
- Equitable Mortgage of the goods to be funded by way of payment of title deeds
- Balance Transfer facility is given with extra finance.
- Processing fee: 1.25% – 1.50%.
- ₹500 as cheque bounce charges plus applicable taxes
- A penal interest rate of 2% on the current rate of interest.
- Minimum login charges of Rs 4000 will be charged
- Their interest rate starts from 15%
- No collateral is required.
5) Citi Bank Business Loans
It is one of the top Business Loan providers in India that provides you with a plethora of business loans for efficient working capital management. This loan is best suited for you when business operations happen overseas as they have a network in more than 100 countries.
- You can avail of overdrafts, working capital loans, short-term and long-term loans.
- You can get a minimum loan amount of Rs1000000 and a maximum amount of Rs. 15000000
- The tenure period ranges from 12 months to 120 months
- The best part is that you can get a loan within 48 hrs with them
- No collateral or guarantor required
- CitiBank does not reveal the loan amount, rate of interest, and tenure on its website. However, this will be unveiled to you at the time of applying.
- Conditional pre-closure and part payment options are available after 12 months.
- Pre-payment charges are 4%.
- Processing fee: 2% on the loan amount sanctioned
- Renewal fees: It is 2% associated with the business loan
- APR:49% – 20.75%
6) IDFC First Bank Business Loans
It is an excellent bank that offers business loans for you to purchase equipment, do business upgrades, or for any other business requirement. While taking a loan from IDFC Bank, you need to keep in mind that you would have to pay it back in equal installments with fixed monthly intervals.
- The Business Installment Loans is available for businesses plus professionals and non-professionals as well
- You can get a business loan from ₹1 Lacs to ₹9 Lacs
- It is an unsecured loan where you need not provide any collateral or security.
- You need to repay the business loan in 4 years
- The loan amount in IDFC first bank would solely depend on the nature of business, repayment capacity, and income
- You can also get comprehensive loan insurance on the approved amount
- Your business must be of 3 years for getting a BIL loan from IDFC bank
- You need not go to the bank to submit the documents as a doorstep pickup option is available with IDFC Bank.
- The rate of interest is around 16% to 24% per annum
- The processing fee is 2.49% of the loan amount
- The foreclosure fee is 5% of the principal amount that is remaining
Also Read: Loan under Pradhan Mantri Jan Dhan Yojana (PMJDY)
7) Kotak Bank Business Loan
It is the fourth-largest private bank in India, started in 1985, and is relatively new from the others on the list. However, they have proliferated and have more than 650 branches all over the country. You can rely on Kotak Bank to take a business loan as they offer competitive prices and transparent policies.
- You can avail of a loan starting from ₹3 Lacs to ₹75 Lacs
- They have flexible and easy repayment options
- The lender needs minimal documentation to process this loan
- They provide business loans without collateral
- The good part is that they have customized offers for corporate & women professionals.
- Manufacturers, self-employed business persons, and service providers can apply for this loan.
- The repayment tenure is 48 months
- Online loan application option is also available
- If the applicant submits all the needed documents, then the bank confirms the business loan within 72 hours.
- The business vintage time must be 3 years.
- They charge around 18% to 23% p.a rate of interest.
- Processing fee charges: Up to 2%
- Documentation charges: Maximum of Rs.10,000 plus taxes
- Their cheque dishonor charges are Rs.750 plus taxes per occurrence
- They charge for copies of reports; it is Rs.500 plus taxes per instance
- Rs.500 plus taxes for repayment mode/Account swap charges
- If you want to get a duplicate NOC, you would have to pay Rs.500 plus taxes
- Concluding charges are 5% or 6% of the running limit.
8) Standard Chartered Bank
People like this bank because the loan application process is very simple and quick, making it the best option for beginners. You can opt for this bank for a business loan because it is a perfect combination of thorough local knowledge along global expertise.
- You can take the Business Installment Loan for a period of up to 36 months
- No collateral/security is required to get this loan
- Tenure lies between 3 to 5 years
- You can get the loan if you need finance for business extension or working capital needs
- Cash security is basically between 30% to 50% of the total loan amount. You can prepay the loan after 1 year of the loan term
- A minimum of 3 years experience in the current business is expected, and 5 years of total business experience is required
- Appellants should be between 25 years to 55 years
- Banks may render business loans to only selective cities and towns
- The business should be making a profit for the last 2 years.
- For the business, installment loan interest rate begins from 17.5% per year
- For getting a loan against property, the rate of interest would be around 10.75%
- To get a loan against the property home saver variable, the interest commences from 11%
- Pre-closure charges- 5% of the outstanding amount.
9) Tata Capital
This is another best bank for a business loan in India as they provide custom-built business loans at competitive interest rates. The loan amount starts from Rs 5lakhs and goes up to Rs75 lakhs. The good part is that no collateral or security is required on most of the loans they offer.
- Multiple Loan Programs
- The interest rate of Tata capitals business loans begins at 19%, with a repayment period of 12 to 36 months.
- Hassle-Free Loan Disbursal
- For a business loan, they need the balance sheet to be audited by a registered CA.
- Flexi EMIs
- It is easier to avail of the loan if you have a cibil score of 700 or above.
- No security needs to be provided to avail of this loan
- The other nice thing about Tata capital’s business loan is that it helps you plan repayment as per your cash flows.
- Individuals between 25 years and 65 years of age can avail of this loan.
- Its PDC charges are Rs.850
- Bounce charges are Rs.450
- Cancellation charges are 2% of the borrowed loan amount or Rs.5,750, whichever is higher
- Duplicate NOC is Rs.550
- Swapping charges are Rs.600
- Fore-closure charges are 5% of the outstanding loan amount plus GST
- Duplicate Repayment Schedule charges are Rs.550
10) IndusInd Bank
This bank is a one-stop solution for all your banking requirements. You can get the lowest interest rates with IndusInd Bank, along with privacy and transparency in their operations. They have more than 380 branches nationwide where entrepreneurs or business owners can apply for a business loan.
- Round the clock customer support
- You can borrow up to Rs.1,500,000 for any business requirement
- They render personalized loan quotations as per different business needs
- They have flexible repayment options, starting from 12 months to 60 months
- You have the option to instantly check whether you are eligible for a loan or not
- They collect the documents required from your given address
- Online loan request option available
- Low-interest rate
- Quick loan disbursal
- Processing Fee- 0.5%-2%
- Pre-payment charges- 4% post 12 EMI clearance
- Interest Rate- 14%-23%
Also Read: List of Banks in India
Comparison of Business loan between Banks
|Lender||Interest Rate||Loan Amount||Loan Tenure|
|HDFC Bank||15.65% p.a. to 21.20% p.a. (Rack interest rate)||Rs.50,000 to Rs.50 lakh||12 months to 48 months|
|FL||18% p.a. to 25% p.a.||Rs.1 lakh to Rs.50 lakh||12 months to 48 months|
|Fullerton India||13% p.a. to 16% p.a. (floating)||Up to Rs.50 lakh||12 months to 48 months|
|DHFL||As per the lender’s terms and conditions||Up to Rs.20 crore||Up to 5 years|
|Magma Fincorp||As per the lender’s terms and conditions||Rs.2 lakh to Rs.2 crore (will vary based on the scheme type)||12 months to 60 months (will vary based on the scheme type)|
|Kotak Mahindra Bank||13% p.a. onwards||Rs.3 lakh to Rs.2 crore||12 months to 60 months|
|Karnataka Bank||10.3% p.a. onwards||Up to Rs.500 lakh (will vary based on the type of scheme)||Up to 120 months (will vary based on the type of scheme)|
|Tata Capital||19% p.a. onwards||Rs.5 lakh to Rs.50 lakh||12 months to 36 months|
|State Bank of India (Simplified Small Business Loan)||8.25% p.a. onwards||Rs.10 lakh to Rs.25 lakh||Up to 60 months|
|Mahindra Finance (Unsecured Business Loans for SME)||17% to 19% p.a. onwards||Rs.1 lakh to Rs.5 lakh||Up to 12 months|
|Federal Bank (Asset Power Scheme – Business Loans for Professionals)||12.3% p.a. to 15.35% p.a.||Up to Rs.2 crore||Up to 84 months|
|Standard Chartered Bank (Business Installment Loan)||17.25% p.a. onwards||Rs.10 lakh to Rs.75 lakh||Up to 60 months|
Taking a loan can be very helpful for people who need funds to expand their business, start a new venture, or for buying equipment, etc., but only those people get successful who use this facility of loan very wisely. Taking a business loan in India has become pretty easy, but it depends on how you use it.
There are a lot of examples in front of you who used this facility irresponsibly and have proven to be a curse for them, such as Nirav Modi, Vijay Mallya, Subrata Roy, and many more.
Recommended: 10 Best Savings Bank Accounts For Children In India
You can take a business loan from any bank mentioned above as all of them are reliable, well-known, and offer excellent services. So take this as a blessing and use vigilantly do not misuse this amount.