20 Best Banks for Business Loan in India

20 Best Banks & NBFCs for Business Loan in India

Finance is called as the lifeblood of business. Adequate funds are required to sustain a healthy business. In the absence of adequate owner’s funds or retained earnings, one can easily opt for a business loan. It is an easy and quick way to acquire funds in needy times. In this article, we will discuss various business loan interest rate details and explore the top 20 banks and NBFCs providing business loans in India.

Top 20 Banks & NBFCs for Business Loan in India

Fees or Charges on Business Loans 

The description of charges associated with business loans along with their details are mentioned below:

1. Processing fees: These are the charges imposed as the charge of processing your business loan in India. This fee is up to 2% of the facility amount plus the taxes applicable.

2. Interest rates: The interest rates applicable are –

  • For secured facilities, the rate is up to I-MCLR-6M + 4.75%.
  • For unsecured facilities which are not under the CGTMSE cover, the rate is up to I-MCLR-6M + 8.50%
  • For facilities that are backed by the CGTMSE, the rate is up to I-MCLR-6M + 4.0%
  • The rate of interest is ascertained based on the business loan amount, financials, and tenure of the loan.

3. Stamp duty and Other Statutory charges: According to the applicable State law of the commission on Letters of credit and Bank Guarantee, the commission is charged up to 2.5% per annum on a pro-rata basis as per the amount and tenure of the facility availed on a non-fund basis.

4. Commitment fees: The average usage of about <50% – 0.50% p.a on the difference between actual utilization and average quarterly utilization of 50%. The charges will be levied quarterly and will be applicable mainly for OD/CC facility.

5. Foreclosure charges: Foreclosure charges are charged up to 4% of entirely limit set-up in the system, in case the facilities are taken over during the loan contract by different banks. Such charges are only applicable in the case of Balance Transfers (BT).

Working Capital facilities either pre-paid or the closed ones via own sources, for these foreclosure charges will not be payable.

Business Loans Interest Rates in India

No matter how big or small your business is, to carry out all operations, funds procurement is necessary. Funds are not just required as a one-time investment but also at regular intervals in the form of working capital. Not everyone has money every time to invest in the business whenever required. Sometimes, there is a great need for money, and sometimes there is no need at all. Everybody will be happy to avail of a business loan with low-interest rates.

Some information regarding business loans and their interests in India:

Interest rates on business loans are mainly of two types reducing or diminishing rate of interests and a flat rate of interest. Both of these are explained below:

a) Reducing or diminishing rate of interest

The reducing or diminishing balance rate means the interest rate will be calculated on the remaining loan amount each month. Under this method, the EMI is inclusive of the principal of repayment along with the interest that is payable on the outstanding amount of loan for every month. After the payment of each EMI, the outstanding amount of loan gets reduced. Thus, the amount of interest for the following month will be calculated only on the outstanding amount of loan.

The formula for calculating the reducing balance interest is Interest Payable per month = {Interest rate per payment * remaining loan amount} / 100

For example, if a person has taken a loan of Rs 1,00,000 with a reducing rate of interest method of 10% for a period of 10 years. Then, the EMI would diminish after each monthly repayment. In the first year, the borrower has to pay Rs 10,000 as interest, while in the second year, it will decrease to Rs 8,000 on the reduced principal of Rs 80,000 and so on. In the final year, the borrower will just have to pay Rs 2,000 as interest. This method is entirely the opposite of the fixed interest payment method.

b) Flat rate of interest

Flat or Fixed rate of interest means the interest will be calculated on a fixed rate on the full amount of loan during the course of the loan period without gradually decreasing the principal amount on each interest payment. Hence, the effective interest rate is noticeably higher than the nominal flat rate of interest.

The formula for calculating the flat or fixed rate of interest is Interest Payable per month = { Principal loan amount * No. of years * Rate of Interest p.a.} / total no. of payments.

For example, If a borrower has taken a loan amounting to Rs 1,00,000 with terms of fixed rate of interest of 10% p.a. for a period of 5 years, then he would have to pay Rs. 20,000 as principal repayment on amount of (1,00,000 / 5) + Rs 10,000 as the interest @ 10% on Rs 1,00,000 equals to total of Rs 30,000 to be paid year after year or Rs 2500 monthly. Till the end of the loan period, the borrower will conclude paying up Rs 1,50,000 (2500* 5* 10).

The interest rate on business loans widely ranges from 15% to 25% per annum. The ascertainment of the final rate of interest depends on the profile of the borrower, CIBIL score, financials, business stability, existing leverages, industry trends, and several other risk assessment criteria.

Factors determining Business Loans Interest Rates in India

There exist some major factors that decide the interest rate. Four main among them are described below:

1. Credit score: All applicants with a handsome credit score can approach the bank to avail of a business loan. The better score you have, the better benefits you will receive, and the interest rate will also vary as per that.

2. The existing time period of Business: No matter what type of business you run, a minimum operation period of two or more years is mandatory. The longer a business has been in existence, the better chances of getting a loan are there.

3. Monthly income or revenue: Returns or earnings are always a major factor for availing any kind of loan. For a business loan, consistency is a pivotal factor. All businesses earn different revenues at different time periods, yet having consistency in earning is crucial. Banks analyze the average daily balance to determine the amount of loan and repayment capacity.

4. Collateral: Collateral is the security that is pledged with the bank to get a loan. The more the collateral value is, the better benefits you will receive. This gives a sense of security to banks to offer larger amounts as the risk involved is low. Various types of collaterals that can be pledged to avail of a loan are deposits, home equity, real estate, investments, and equipment.

Things to compare before applying for a Business Loan

1. Monthly EMIs: Not only the current status but the records of financial stability also play a vital role in determining the borrower’s capacity to pay EMIs per month. Having good financial records is the key to success in all the fields. This can decide the loan amount, duration of the loan period, and rate of interest while applying for a new loan. Always make sure that you are making EMI payments from the excess funds without affecting your basic needs or requirements. It is necessary to ensure that such EMI payments are made without any default, as it will influence your CIBIL score. Maintaining a good CIBIL score is necessary.

2. Processing fees: This is a one-time payment made towards the bank to make them process your loan. It is an additional cost incurred in terms of service charge. This fee is non-refundable, and no interest will be provided on it. Irrespective of what kind of loan you are looking towards, this charge is not avoidable and is supposed to be paid at the beginning.

3. Prepayment: During the loan period, if there a situation arises to pre-close the loan amount before the terminating period, it can be done with some additional prepayment charges. The bank calculates such charges on balance outstanding to check the service charges and other factors.

Best Way to Compare Business Loans in India

Before the final selection of your business loan lender, make sure the various crucial factors are compared with that of other Banks and NBFCs. The major factors which should be taken into account are the interest rates, processing fees, and other charges, Easy Monthly Installments (EMIs), type of interest rate method available, what are eligibility criteria, Is there any collateral requirement or not, how reliable the bank is, etc.

20 Best Banks and NBFCs for Business Loans in India

Let’s compare the top 20 Business Loan Lenders – Eligibility and Interest Rates in India. 

1. Axis Bank

Axis Bank Business Loan Details

Axis Bank gives business loans against the property as collateral. Among the most influential features of the loan are the competitive interest rates and doorstep service. It offers business loans with a duration of 15 years. You can avail a maximum of Rs. 50 lakh business loan with no collateral from Axis Bank.

Axis Bank Business Loan Details

  • Interest Rate: 10.75% to 21% per annum
  • Processing Fees & Charges: Up to 2.0% + GST as applicable
  • Minimum Loan Amount: Rs 50,000
  • Maximum Loan Amount: Rs 50 Lakhs
  • Minimum Tenure Period: 1 year
  • Maximum Tenure Period: 15 years

Documents required

  • Identity proof (Voter’s ID / Driving licence / Permanent Account Number card/ Aadhar card / Passport)
  • Address proof ( current bill of utilities / ration card / passport)
  • Income proof ( Last 6 months’ salary slip/bank statement of 6 months / current year’s form 16).
  • All lease documents, if in case applicable.

Eligibility criteria 

  • The applicant should have a minimum age of 24 years.
  • Turnover – Minimum Rs. 30 Lakhs
  • The business should up & running for a minimum of 3 years
  • The salaried applicants should be an employee of a government firm or reputed private firm.
  • Any self-employed person filing his income tax returns is eligible.

2. Capital First

Capital First Business Loan Details

Capital First is the prime place for you if you are looking for flexible terms of processing and documentation. The bank has offered the highest loan amounting to 75 lakhs, which is a huge amount when we talk about other banks and financial institutions. While applying for this loan, no guarantor is required.

Capital First Business Loan Details

  • Interest Rate: 16.00% – 24.00% per annum
  • Processing Fees & Charges: Up to 2.0% + GST as applicable
  • Minimum Loan Amount: Rs 50,000
  • Maximum Loan Amount: Rs 75 Lakhs
  • Minimum Tenure Period: 1 year
  • Maximum Tenure Period: 5 years

Documents required

  • Filled Application form
  • Valid ID proof (Voter’s ID / Driving licence / Permanent Account Number card/ Aadhar card / Passport)
  • Valid Address proof ( current bill of utilities / ration card / passport)
  • Financial documents such as income tax returns and last 2 years’ profit & loss and balance sheet, bank statement of last 6 years, and business proof.
  • The latest performance report and projected turnover on the company’s letterhead.

Eligibility criteria

  • The applicant should be a minimum of 24 years of age, and the maximum age of the applicant should not be more than 65 years.
  • The business should be earning profit for the previous 1 year.
  • The latest business should be operating for at least 48 months.
  • The applicant should have business experience of at least 60 months.

3. Citi Bank

Citibank Loan Details

Citibank offers loans to business people and self-employed in the trading, manufacturing, or service industry. Citi Bank has distinctive loan approval and disbursement procedure. They sanction loans within 48 hours and provide a repayment duration of 10 years. CitiBank does not disclose the loan amount, rate of interest and the tenure upfront on its website.

Documents required

  • Filled Application form
  • 2 Passport size photographs
  • Valid ID proof (Voter’s ID / Driving licence / Permanent Account Number card/ Aadhar card / Passport)
  • Valid Address proof ( current bill of utilities / ration card / passport)
  • Valid Proof of Age ( Photo PAN card / Passport /Voter’s identity card)
  • Financial documents: income tax return, and last 2 years’ profit & loss and balance sheet, bank statement of last 6 months & business proof.

Eligibility Criteria:

  • The minimum age for a self-employed person is 21 years, whereas for salaried people the minimum age is 26 years.
  • The maximum age limit salaried applicant is 60 years, whereas the maximum age limit for self-employed applicants is 65 years.
  • The applicant should have at least ₹30,000 monthly earnings.

4. ICICI Bank

ICICI Bank Business Loan Details

ICICI Bank is among the leading private sector banks of India. It takes care of the business needs of individuals as well as business people by providing business loans with interest rates starting from 16% p.a. The bank offers customized business loans to SMEs with the effortless loan procedure.

ICICI Bank Business Loan Details

  • Interest Rate: 12.9% – 16.65% per annum
  • Processing Fees & Charges: Up to 2.0% + GST as applicable
  • Minimum Loan Amount: Rs 1,00,000
  • Maximum Loan Amount: Rs 40 Lakh
  • Minimum Tenure Period: 1 year
  • Maximum Tenure Period: 5 years

Documents required

  • Filled Application form for a personal loan
  • 2 passport sized photographs
  • Valid Identity proof (Voter’s ID / Driving licence / Permanent Account Number card/ Aadhar card / Passport)
  • Valid Address proof ( current bill of utilities / ration card / passport)
  • Financial documents such as income tax returns and last 2 years’ profit & loss and balance sheet, bank statement of last 6 years, and business proof.
  • Performance of the latest year and projected turnover on the company’s letterhead.

Eligibility criteria

  • The applicant should be a minimum of 25 years of age, and the maximum age of the applicant should not be more than 65 years.
  • The business should be earning profit for the previous 1 year.

5. IndusInd Bank

IndusInd Bank Business Loan Details

IndusInd Bank offers various financial products and services that serve the corporate banking. It provides business loans for new MSMEs, corporates, and other businesses. No collateral is required for the loan, and loan processing is fast and easy.

IndusInd Bank Business Loan Details

  • Interest Rate: 10.6% -18% per annum
  • Processing Fees & Charges: Up to 2.5% + GST as applicable
  • Minimum Loan Amount: Rs 10 lakh
  • Maximum Loan Amount: Rs 50 Lakh
  • Minimum Tenure Period: 1 year
  • Maximum Tenure Period: 3 years

Documents required

  • Valid Identity proof (Voter’s ID / Driving licence / Permanent Account Number card/ Aadhar card / Passport)
  • Valid Address proof ( current bill of utilities / ration card / passport)
  • Salary slip of last 3 months, bank statement of last 3 months, and Form 16 are required for salaried person and income tax returns and last 2 years’ profit & loss and balance sheet for a self-employed person.
  • Certified copy of Partnership Deed / Certified copy of MOA, AOA & Board resolution / Declaration of Sole proprietorship. In case of income earned from a partnership firm, B/S and P&L a/c of the latest 2 years of the partnership firm with all schedules certified by a CA for self-employed persons.

Eligibility criteria

  • The applicant should be a minimum of 25 years of age.
  • The maximum age for the applicant should not be more than 65 years.
  • The business should be earning profit for the previous 2 years.

6. HDB Bank

HDB Bank details

Housing Development Board (HDB) is a subsidiary of HDFC Bank that offers business loans at competitive interest rates in India. They provide loans amounting max up to ₹30 lakhs, and the loan repayment tenure is up to 5 years. No collateral required. They render special offers for self-employed doctors.

Documents required

  • Valid ID proof (Voter’s ID / Driving licence / Permanent Account Number card/ Aadhar card / Passport)
  • Valid Address proof ( current bill of utilities / ration card / passport)
  • Valid Proof of Age ( Photo PAN card / Passport /Voter’s id card/ Marksheet of 10th or 12th)
  • Financial documents such as the latest income tax returns and last 2 years’ profit & loss and balance sheet, certified by a CA.
  • Bank statement of the last 3 months or the passbook of the last 6 months.

Eligibility criteria

  • The minimum age of the applicant should be 22 years, and the maximum age to apply is 65 years.
  • The applicant should be in the current business for the last 3 years.
  • The Minimum Annual Income should be ₹1 Lakh in the case of metro cities and ₹ 75,000 for other cities.

7. Tata Capital Business Loan

Tata Capital Business Loan Details

Tata capital provides tailor-made business loans to cates the needs of businesses. They require no collateral and minimal documentation. They provide loans from ₹5 lakhs to ₹50 lakhs with repayment tenure of 12 to 36 months.

Tata Capital Business Loan Details

  • Interest Rate: 19 – 21% per annum
  • Processing Fees & Charges: Up to 2.7% + GST as applicable
  • Minimum Loan Amount: Rs 5 lakh
  • Maximum Loan Amount: Rs 75 Lakh
  • Minimum Tenure Period: 1 year
  • Maximum Tenure Period: 3 years

Documents required

  • 2 passport size photographs
  • Valid Identity proof (Voter’s ID / Driving licence / Permanent Account Number card/ Aadhar card / Passport)
  • Valid Address proof ( current bill of utilities / ration card / passport)
  • Salary slip of last 3 months, bank statement of last 3 months, and Form 16 are required for salaried person and income tax returns and last 2 years’ profit & loss and balance sheet for a self-employed person.
  • Certified copy of Partnership Deed / Certified copy of MOA, AOA & Board resolution / Declaration of Sole proprietorship. In case of income earned from a partnership firm, B/S and P&L a/c of the last 2 years of the partnership firm with all schedules certified by a CA for self-employed persons.

Eligibility criteria

  • The applicant should be a minimum age of 25 years in the case of a salaried person. The maximum age limit for the is 65 years for self-employed.
  • The business should be earning profit for the last 3 years.
  • The business should be making a turnover of ₹4 million, and it should be expanding throughout time.
  • Income tax return of at least ₹300,000 should be filled by the firm.

Also Read: Instant Payday Loans Within 24 Hours In India

8. HDFC Bank

HDFC Bank Business Loan Details

HDFC Bank is one of the leading private commercial banks in India. The bank offers a wide range of services at attractive interest rates. The bank offers flexible short-term and long-term business loans with the interest rate starting from 15.65%. They provide doorstep service with facile documentation and quick loan amount disbursal within 48 hours.

HDFC Bank Business Loan Details

  • Interest Rate: 15.65% to 21.20% per annum
  • Processing Fees & Charges: Up to 2.50% + GST as applicable
  • Minimum Loan Amount: Rs 50,000
  • Maximum Loan Amount: Rs 50 Lakhs
  • Minimum Tenure Period: 1 year
  • Maximum Tenure Period: 4 years

Document required

  • PAN card
  • Valid Identity proof (Voter’s ID / Driving licence / Permanent Account Number card/ Aadhar card / Passport)
  • Last 6 months bank statements.
  • Financial documents such as the latest income tax returns and last 2 years’ profit & loss and balance sheet, certified by a CA.
  • Business existence or constitution Proof such as a certified copy of Partnership Deed / Certified copy of MOA, AOA & Board resolution / Declaration of Sole proprietorship.
  • ITR, Trade license, Establishment, Sales Tax Certificate.

Eligibility criteria

  • The age limit of the applicant should be a minimum of 21 years and a maximum of 65 years.
  • The minimum turnover should be of ₹40,00,000.
  • The applicant should be in the current business for the last 3 years and should have 5 years of overall business experience.
  • The business should be earning profit from the last 2 years.
  • The Minimum Annual Income (ITR) should be ₹1,50,000 p.a.

9. Standard Chartered Bank

Standard Chartered Bank Business Loan Details

Standard Chartered Bank is among the most customer-friendly and trusted banks. This is India’s largest international bank. The application process of the Standard Chartered business loan is straightforward and quick. The bank gives collateral-free instalment loans up to INR 7.5 million, with maximum loan duration up to 36 months.

Standard Chartered Bank Business Loan Details

  • Interest Rate: 13.5% – 20% per annum
  • Processing Fees & Charges: Up to 2.0% + GST as applicable
  • Minimum Loan Amount: Rs 10 Lakhs
  • Maximum Loan Amount: Rs 50 Lakhs
  • Minimum Tenure Period: 1 year
  • Maximum Tenure Period: 5 years

Documents required

  • ID proof (Voter’s ID / Driving licence / Permanent Account Number card/ Aadhar card / Passport).
  • Address proof ( current bill of utilities / ration card / passport).
  • In the case of salaried persons, the latest monthly salary slip.
  • Latest year’s bank statements, income proof, form 10 and form 11.
  • Filed GST returns or Income tax returns.
  • Business existence or constitution Proof such as a certified copy of Partnership Deed / Certified copy of MOA, AOA & Board resolution / Declaration of Sole proprietorship.

Eligibility criteria

  • The applicant should have experience of at least 3 years in the current business.
  • The turnover should be a minimum of ₹12 million.
  • All proprietorship firms, Partnership firms, Pvt. Ltd Companies, Closely held Public-limited companies, Professionals such as doctors, chartered accountants, architects, business consultants are eligible for the loan.

10. Fullerton India

Fullerton India Business Loan Details

Fullerton India offers business loans to business people and self-employed to meet the financial requirements of the business. No collateral or guarantor required. They have easy approval with minimal documentation.

Fullerton India Business Loan Details

  • Interest Rate: 13% – 21% per annum
  • Processing Fees & Charges: Up to 2.0% + GST as applicable
  • Minimum Loan Amount: Rs 10 Lakhs
  • Maximum Loan Amount: Rs 50 Lakhs
  • Minimum Tenure Period: 1 year
  • Maximum Tenure Period: 5 years

Documents required

  • Recent passport size photographs
  • Identity proof (Voter’s ID / Driving licence / Permanent Account Number card/ Aadhar card / Passport).
  • Address proof ( current bill of utilities / ration card / passport).
  • Certified bank statements and income proof.
  • Filed GST returns or Income tax returns.
  • Business existence or constitution Proof such as a certified copy of Partnership Deed / Certified copy of MOA, AOA & Board resolution / Declaration of Sole proprietorship.

Eligibility criteria

  • The applicant should be between the age limit of 25 to 65 years.
  • The applicant should be in the current business for the last 3 years, and the overall business experience of 5 years is required.
  • The business should have a minimum turnover of ₹10 Lakhs.
  • The business should be generating profits for the past 2 years.
  • The business should have a Minimal Annual Income (ITR) of 2 Lakhs per year.

11. RBL Bank Ltd.

RBL Bank Business Loan Details

RBL Bank provides loans to business people and self-employed persons for financing business expansions and working capital requirements. Flexible repayment options are there, and no collateral or guarantor required.

RBL Bank Business Loan Details

  • Interest Rate: 16.00% – 21.00% per annum
  • Processing Fees & Charges: Up to 2.0% + GST as applicable
  • Minimum Loan Amount: Rs 10 Lakhs
  • Maximum Loan Amount: Rs 35 Lakhs
  • Minimum Tenure Period: 1 year
  • Maximum Tenure Period: 3 years

Documents required

  • Valid Identity proof (Voter’s ID / Driving licence / Permanent Account Number card/ Aadhar card / Passport)
  • Valid Address proof ( current bill of utilities / ration card / passport)
  • Bank statement of last 6 months
  • Business existence proof such as a certified copy of Partnership Deed / Certified copy of MOA, AOA & Board resolution / Declaration of Sole proprietorship.
  • Copy of Income Tax PAN for 24 months

Eligibility criteria

  • Business Loans is offered for self-employed, sole proprietorships, private limited companies, and partnership firms with at least 3 years of a profitable business.
  • The minimum age is 25 years and a maximum of 65 years.
  • At least 5 years of experience required in the same business-line. For self-employed professionals, the post-qualification experience of at least 4 years is mandatory.
  • Minimum turnover should be ₹10 million for business, and for Professionals, gross profit should be at least ₹6 million.
  • Applicants should have an office or residence in their name or jointly with family members compulsorily.

12. Kotak Mahindra Bank

Kotak Mahindra Bank Business Loan Details

Kotak Mahindra Bank offers a range of personalized business loans without the need of any collateral, as per your distinct needs. Loans are offered ranging from ₹3 lakhs to ₹75 lakhs, with flexible repayment modes. They have quick loan disbursal with minimum paperwork.

Kotak Mahindra Bank Business Loan Details

  • Interest Rate: 16.00% to 19.99% per annum
  • Processing Fees & Charges: Up to 2.0% + GST as applicable
  • Minimum Loan Amount: Rs 3 Lakhs
  • Maximum Loan Amount: Rs 75 Lakhs
  • Minimum Tenure Period: 1 year
  • Maximum Tenure Period: 4 years

Documents required

  • Identity proof (Voter’s ID / Driving licence / Permanent Account Number card/ Aadhar card / Passport).
  • Address proof ( current bill of utilities / ration card / passport).
  • Business existence or constitution Proof such as a certified copy of Partnership Deed / Certified copy of MOA, AOA & Board resolution / Declaration of Sole proprietorship.
  • Proof of continuation of business such as ITR/Trade license/Establishment/Sales Tax Certificate.
  • Ownership proof such as Copy of agreement, Bill of utilities, Municipal tax bill, share certificate.

Eligibility criteria

  • The applicant should be between the age limit of 25 to 65 years.
  • Sole proprietorship, Partnership firm, Private Limited Company, LLP, Trust engaged in the manufacturing, trading or services sector business.
  • The business must be in existence for the last 3 years and should have a minimum turnover of 40 lakhs.
  • The business must be earning profit for at least 1 year.

13. Aditya Birla Finance Ltd.

Aditya Birla Finance Business Loan Details

There are several NBFCs offering business loans in India but Aditya Birla Capital is one of best NBFCs in the list. No income proof is required for self-employed people, and the loan is sanctioned within 5 minutes.

Aditya Birla Finance Business Loan Details

  • Interest Rate: 16.85% – 17.85% per annum
  • Processing Fees & Charges: Up to 2.0% + GST as applicable
  • Minimum Loan Amount: Rs 50,000
  • Maximum Loan Amount: Rs 15 Lakhs
  • Minimum Tenure Period: 1 year
  • Maximum Tenure Period: 3 years

Documents required 

  • For self-employed persons without income proof
  • Passport size photographs
  • PAN Card
  • Address proof of Office
  • Address proof of Current Residence
  • Business Registration Proof
  • For a self-employed person with income proof
  • Application form with the latest photograph
  • Valid ID proof (Voter’s ID / Driving licence / Permanent Account Number card/ Aadhar card / Passport)
  • Valid Address proof ( current bill of utilities / ration card / passport)
  • Valid Proof of Age ( Photo PAN card / Passport /Voter’s identity card)
  • Last 6 years’ Bank statement and Proof of business existence.
  • Audited financial statements and Income Tax Returns of the last two years

Eligibility criteria

  • The minimum age limit is 25 years, and the maximum age limit is 55 years.
  • A business loan can be availed by a sole proprietorship, partnership firm, private limited companies, closely-held publicly listed companies, and well known and trusted societies and trusts.
  • The business must be earning profit for the last 3 years.
  • The applicant is required to present authentic financial documents, i.e., balance sheets and statement of profit & loss of the last 2 years along with the required tax audit reports.

Also Read: How to Apply for MUDRA Loan in India

14. Bajaj Finserv

Bajaj Finserv Business Loan Details

Bajaj Finserv is one of the leading NBFCs providing business loans in India. Availing a loan from Bajaj Finserv is an effortless and smooth procedure along with 24*7 customer support.

Bajaj Finserv Business Loan Details

  • Interest Rate: 18% – 30% per annum
  • Processing Fees & Charges: Up to 2.0% + GST as applicable
  • Minimum Loan Amount: Rs 1 Lakh
  • Maximum Loan Amount: Rs 20 Lakhs
  • Minimum Tenure Period: 1 year
  • Maximum Tenure Period: 5 years

Documents required

  • Valid ID proof (Voter’s ID / Driving license / Permanent Account Number card/ Aadhar card / Passport or any other valid documents)
  • Valid Address proof ( current bill of utilities / ration card / passport / lease agreement or trade licence)
  • Proof of business ownership
  • Last 6 years’ Bank statement, Audited financial statements, and Income Tax Returns of the last two years.

Eligibility criteria

  • The age limit to apply for the business loan is 25 to 55 years.
  • The business must be operating for at least 3 years.
  • Filed Income Tax Returns of the business of a minimum of 1 year.

15. IDFC First Bank

IDFC First Bank Business Loan Details

IDFC First Bank provides loans ranging from ₹ 3lakhs to ₹75 lakhs for all types of business, and no security or collateral is required for obtaining a business loan. They have a flexible loan tenure and door to door service across 50 cities of India.

IDFC First Bank Business Loan Details

  • Interest Rate: 11.69% – 15% per annum
  • Processing Fees & Charges: Up to 1.5% + GST as applicable
  • Minimum Loan Amount: Rs 1 Lakh
  • Maximum Loan Amount: Rs 40 Lakhs
  • Minimum Tenure Period: 1 year
  • Maximum Tenure Period: 5 years

Documents required

  • Valid ID proof with photo (Voter’s ID / Driving license / Permanent Account Number card/ Aadhar card / Passport or any other valid documents)
  • Valid Address proof (current bill of utilities / ration card / passport / lease agreement or trade licence)
  • Proof of business ownership
  • Income proof such as the last 6 years’ Bank statement, Audited financial statements, and latest Income Tax Returns.

Eligibility criteria

  • The minimum age to apply is 28 years, and the maximum age limit is 68 years.
  • Businesses must be operating for at least 3 years.
  • Businesses must be making a profit from the last 2 years, at least.
  • The turnover of the business must be more than ₹1 crore.

16. Lendingkart Finance

Lendingkart Finance Business Loan Details

Lendingkart offers business loans if the amount ranges from Rs.50,000 to Rs.2 Crores. The interest rate starts from 1.25 % monthly. No collaterals are required to avail a business loan. They provide fast and direct loan processing within 72 hours.

Lendingkart Finance Business Loan Details

  • Interest Rate: 18% – 27% per annum
  • Processing Fees & Charges: Up to 2.0% + GST as applicable
  • Minimum Loan Amount: Rs 50,000
  • Maximum Loan Amount: Rs 2 crore
  • Minimum Tenure Period: 1 year
  • Maximum Tenure Period: 4 years

Documents required

  • Passport size photos
  • Valid ID proof with photo (Voter’s ID / Driving license / Permanent Account Number card/ Aadhar card / Passport or any other valid documents)
  • Last 6 years’ certified Bank statement.
  • Business proof such as a certified copy of Partnership Deed / Certified copy of MOA, AOA & Board resolution / Declaration of Sole proprietorship, income tax returns, P&L a/c and Balance sheet of latest 2 years

Eligibility criteria

  • The applicant should be within the age limit of 21 to 65 years.
  • For loans over 15 lakhs, the business must be earning profit from the last 3 years.
  • For self-employed persons, the necessary skills and qualifications are required. For sole proprietorship, partnership and companies, profit and loss statements are required.
  • The business should be making a profit from the last 2 years.
  • A balance sheet is required to be audited by a registered Chartered Accountant.

17. Magma Fincorp Ltd.

Magma Fincorp Business Loan Details

Magma Fincorp Ltd offers loans to small and medium scale enterprises indulged in trading or manufacturing. Loans are available without collateral amounting from Rs.3 lakhs to Rs.2 crores. The interest rates vary from 17% p.a. to 21% p.a. Loan tenure is limited to 48 months.

Magma Fincorp Business Loan Details

  • Interest Rate: 17% – 21% per annum
  • Processing Fees & Charges: Up to 2.0% + GST as applicable
  • Minimum Loan Amount: Rs 3 lakhs
  • Maximum Loan Amount: Rs 10 lakhs
  • Minimum Tenure Period: 1 year
  • Maximum Tenure Period: 3 years

Documents required

  • KYC documents and Proof of address, age, and signature.
  • Statement of loan obligation along with Banking and Loan payment history
  • Property Ownership proof and Proof of factory and/or office address.
  • Financial statements for the last 3 years and Bank statements for the last 6 months.
  • Documents of incorporation or Validation Proof and tax receipts for the current year’s turnover.

Eligibility criteria

  • The business should be in existence for the last 5 years.
  • The business should be making profits from the last 2 years.
  • The business should have positive net worth and visible growth in turnover.
  • The minimum turnover for the service industry is ₹15 lakhs, and for manufacturing and trading industries is ₹40 lakhs.
  • Default proof loan history

18. Yes Bank

Yes Bank Business Loan Details

Yes, Bank provides unsecured business loans up to ₹50 lakhs for business expansion and working capital requirements of their customers.

Yes Bank Business Loan Details

  • Interest Rate: 13.25% – 19.99% per annum
  • Processing Fees & Charges: Up to 2.5% + GST as applicable
  • Minimum Loan Amount: Rs 1 lakh
  • Maximum Loan Amount: Rs 50 lakhs
  • Minimum Tenure Period: 1 year
  • Maximum Tenure Period: 5 years

Documents required

  • PAN card for individual/ firm/ company
  • Valid ID proof with photo (Voter’s ID / Driving license / Permanent Account Number card/ Aadhar card / Passport or any other valid documents)
  • Valid Address proof ( current bill of utilities / ration card / passport / lease agreement or trade licence)
  • Latest ITR with income evaluation, Profit & loss a/c and Balance sheet of last 2 years, certified by an auditor.
  • Proof of continuation of business (ITR/Trade license/Establishment/Sales Tax Certificate).

Eligibility criteria

  • The applicant should be a minimum of 21 years of age, yet not older than 65 years.
  • The loan can be availed by the self-employed, partnership firm, or company, engaged in manufacturing, trading, and service industry.

19. Neo Growth

Neo Growth Business Loan Details

Neo Growth is among leading NBFCs providing unsecured business loans up to ₹75 lakhs to MSME, SME, and business people. The loan tenure ranges from 18 to 36 months. For loans up to 15 lakhs, no ITR is needed. They offer quick loan disbursal and flexible modes of repayment.

Neo Growth Business Loan Details

  • Interest Rate: 12% – 36% per annum
  • Processing Fees & Charges: Up to 2.0% + GST as applicable
  • Minimum Loan Amount: Rs 5 lakhs
  • Maximum Loan Amount: Rs 75 lakhs
  • Minimum Tenure Period: 1.8 year
  • Maximum Tenure Period: 3 years

Documents required

  • PAN Card and Passport size photo
  • Valid Proof of business ( current bill of utilities/ration card/passport/lease agreement or trade license)
  • Proof of registration of business (Trade license/GST registration/ Establishment Certificate/ Sales Tax Certificate).
  • Income tax returns (for loan above 15 lakhs) and bank statements.

Eligibility criteria

  • For Retail Businesses:
  • A Retail Business with POS (EDC) machine
  • Usage of POS (EDC) machine for the last 6 months.
  • Minimum Average Card Sale of Rs.1 lakh for the last 6 months
  • Usage of POS (EDC) machine 14 days in a month, at least.
  • Business existence of at least 2 years
  • For Vendors of Large Corporate:
  • Aggregate receipts from large corporates (with a turnover of more than ₹100 crores) per month should be more than Rs. 5 lacs in the last 6 months.
  • The business should be operating for the last 3 years.

Recommended: 10 Best Government Business Loan Schemes For MSMES And Startups

20. India Infoline

India Infoline Business Loan Details

India Infoline (IIFL) provides business loans in India to meet the financial needs of your business. They provide loans without collateral and for a period ranging from 12-48 months. They provide fast loan approval and flexible repayment alternatives.

India Infoline Business Loan Details

  • Interest Rate: 18% – 25% per annum
  • Processing Fees & Charges: Up to 3.0% + GST as applicable
  • Minimum Loan Amount: Rs 1 lakh
  • Maximum Loan Amount: Rs 50 lakhs
  • Minimum Tenure Period: 1 year
  • Maximum Tenure Period: 3 years

Documents required

  • Application form with the latest photographs
  • KYC Documents as per RBI guidelines. (PAN card/ voter ID/ driving licence / passport/ Aadhar card)
  • Financial Statements for the last 2 years.
  • Income tax returns and bank statements for the last 6 months.

Eligibility criteria 

  • Businesses must be in existence for the last 3 years.
  • Businesses must have a positive net worth.
  • Applicants should have a default-free credit history.

We hope this article was helpful and you were able to decide to apply for the Best Banks & NBFCs for Business Loan in India. But if you still have any queries or suggestions then feel free to reach out using the comment section.

0 Shares:
Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like