Business loan Interest Rate - HDFC, SBI, Bajaj, ICICI Bank, Others

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Business Loan Interest Rates in India Oct 2016

Last Updated 21st Oct 2016

  • Compare and get best offers for self employees from banks
  • Maximum loan tenure upto 5 years
  • Flexi loans, nil prepayment charges options
  • Apply business loan Online without any security or collateral
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Business Loan Interest Rates Comparison, Lowest EMI Oct 2016, Best rates

Bank, Click for More Details Interest Rates* Lowest EMI per Rs. one lakh
Allahabad Bank
0 votes
10.05% - 15.55% Rs. 1,663
Andhra Bank
0 votes
15.75% - 16.00% Rs. 2,419
Bajaj Finserv
0 votes
14.00% - 20.00% Rs. 2,733
Bank of Baroda
0 votes
14.10% - 14.10% Rs. 3,423
Bank of Maharashtra
0 votes
14.50% - 15.50% Rs. 3,442
Capital First
0 votes
16.00% - 24.00% Rs. 3,516
Corporation Bank
0 votes
13.55% - 14.55% Rs. 2,304
Development Credit Bank
0 votes
10.70% - 18.00% Rs. 1,118
Dhan Laxmi Bank
0 votes
13.15% - 13.40% Rs. 2,283
Fullerton India
0 votes
20.00% - 33.50% Rs. 3,043
3 votes
16.25% - 19.75% Rs. 3,528
0 votes
16.85% - 0.00% Rs. 2,035
0 votes
13.00% - 14.00% Rs. 2,275
Indian Overseas Bank
0 votes
14.90% - 15.25% Rs. 2,374
IndusInd Bank
0 votes
14.00% - 23.00% Rs. 2,327
Kotak Bank
0 votes
18.00% - 24.00% Rs. 2,539
0 votes
11.95% - 11.95% Rs. 1,763
0 votes
12.60% - 15.60% Rs. 2,255
2 votes
11.20% - 16.30% Rs. 2,594
Syndicate Bank
0 votes
14.45% - 14.45% Rs. 2,350
Tamilnad Mercantile Bank
0 votes
13.40% - 14.40% Rs. 2,296
United Bank of India
0 votes
14.15% - 14.15% Rs. 2,335

Unsecured Business Loan

Parameter Description
Eligible Entities Self proprietorships, partnership firms, private limited companies, doctors, self employed professionals with a minimum annual turnover of Rs 25 lakh for manufacturers and Rs 50 lakh for traders
Minimum Loan Amount Rs 5 lakh
Maximum Loan Amount Up to Rs 1 crore, in select cases up to Rs 5 crore
Interest Rate 14-22%, floating rate of interest
Loan Tenure 1-3 years. Few lenders offer loans of up to 5 years in select cases
Processing Fees 2-3%
Prepayment Penalty As per the loan agreement
Loan Amount Eligibility
    Lenders use multiple ways to estimate the eligibility
  • Turnover product, where an industry margin of up to 15% is applied on the turnover to estimate the income of the borrowers
  • DSCR product where eligibility is estimated using the debt repayment capacity of the borrower
  • Other Surrogate income products for loan amount of less than Rs 10 lakh
Documents Required
  • Last two years Income Tax Returns that have been filed on time
  • Bank Statements of last six months
  • VAT number, registration certificate etc
  • Professional degree and registration number

Business Loan

Compare Unsecured Business Loan Rates

  • Business Loan processing fees – Most banks charges minimum processing fees of Rs. 999 to upto 2% on Business Loans. To get lowest fee, comparison of business loan rates, offers and cashback applying online through MyLoanCare.
  • Business Loan insurance premium - Since Business loans are unsecured loans, it is advisable to take an insurance policy when availing a loan. However, the premium varies from bank to bank depending upon the risk coverage under various policies. So, check the loan sanction letter carefully to know the coverage and premium.
  • Business Loan prepayment and foreclosure – Nobody wants to keep paying interest on a loan when you have surplus money available to repay it. When you want to repay your loan partially before time, its called part prepayment. In case you decide to pay the entire loan amount before time, it is called foreclosure. Banks typically levy prepayment or foreclosure charges in such situations and these can range from nil to eve upto 5%. So, check carefully if the low rate of interest you are getting comes with high prepayment or foreclosure charges. Note that some Business loans cannot be repaid before time.

Lowest Business Loan Rate Online

How to get and apply online?
  • Offer based on loan amount – You may be surprised to know that in some cases rate of interest on say, a Rs. 20 lakh loan, may be lower than that on a Rs. 19 lakh business loan. This is due to different pricing grids of banks and discounts for higher loan amounts that are offered from time to time.
  • Discount for tenures – Banks may offer lower rates on business loan for certain tenure and it may be useful to check these carefully.

Best Business Loan

How to get best business loan interest rates?
  • Do not apply with multiple banks – Remember that every loan application is recorded in your CIBIL report. Too many Business loan applications at the same time can hurt your chances of getting a loan and even lead to an increase in rate of interest. Multiple applications signal desperation to get loan on the part of the customer.
  • Do not fall for marketing gimmicks – It is common for loan agents and DSA’s to lure customers by quoting a lower rate of interest knowing very well that the final rate will be higher. Always check with authorized representatives and get the rates in writing before giving your documents for processing.

Business Loan Apply Online

Documents for Business Loan Application
Signed Application Form
Identity Proof (PAN)
Residential Address Proof
Last 3 years ITR (self and business), profit and loss account, balance sheets certified/audited by a CA.
Last 12 months bank account statement (self and business)
Certificate and Proof of Business Existence
Business Profile
Office address - ownership/ lease / rent agreement/ utility bill

Typically Accepted Proofs

Individuals Firms, Partnerships
Identity Proof PAN card, Passport, Driving License, Aadhar Card, Voter id, Govt issued i-card
Certificate and Proof of Business Existence PAN , sales tax/ excise/ VAT/ service tax registration, Copy of partnership deed, Trade license, certificate of practice, registration certificate issued by RBI, SEBI
Address Proof Passport, Driving License, Election ID card, Electricity/ Telephone/ Mobile bill/ bank statement (not more than 3 months old) Bank statement, utility bill, Registry copy, lease or rent agreement, TAN allotment letter

Business Loan Interest Rate in India

Frequently Asked Questions

What should be the borrower’s age to apply for business loan?

Borrower should be atleast 21 years old and not more than 65 years of age.

Does no CIBIL history affect business loan?

Yes, banks may reject your loan application if you do not have a CIBIL history or poor CIBIL. In that case, you have to opt for a business loan with high rate of interest. Banks consider you to avail gold loan or credit card to build some CIBIL history before you apply for a loan.

What factors affect my business loan interest rate?

Business loan interest rate can be affected by 3 main factors:
  • Higher the loan amount, lower will be the rate of interest
  • Higher the revenue, lesser will be the business loan interest rate
  • Longer time in business can avail you loan at lower rates

Can I reduce EMI on business loan?

You can reduce your business loan EMI if the bank offers part prepayment or full prepayment. Most banks allow prepayment after repayment of 6-12 EMI’s and some banks allow after 1 EMI only. So, opt for prepayment of loan if you have surplus amount and want to lower your burden of EMI.
Business Loan @ 13.50%* Cashback Upto Rs. 2,500

Compare SBI, PNB, ICICI Bank, HDFC, Axis Bank, Bajaj Finserv, Kotak Bank, Fullerton India and others online.

Business Loan Reviews
3.8/5  by 6 customers
Interest Rate
Fees & Charges
Pre - Sales Service
Post - Sales Service
Customer Reviews
Reviewed on 05th Apr 16
4 / 5 stars
HDFC Bank Business Loan Availed in Mar-16
excellent and fast loan proessing with no hidden charges More
Reviewed on 04th Apr 16
3.5 / 5 stars
SBI business loan
SBI Business Loan Availed in Apr-16
Bank kept to its promise in terms of interest rate and sanctioning timeline. Overall a good expereince More
Reviewed on 03rd Apr 16
3 / 5 stars
SBI is good
SBI Business Loan Availed in Dec-16
It was a good experience to take loan from SBI More
Reviewed on 02nd Apr 16
3.5 / 5 stars
HDFC Bank Business Loan Availed in Jan-16
Took loan for my business. Overall experience was good More
Reviewed on 01st Apr 16
4 / 5 stars
Good experience
HDFC Bank Business Loan Availed in Feb-16
Got loan with best rates and processing fee. Bank people kept their promise More
Reviewed on 22nd May 15
4.8 / 5 stars
FD OD for Businessmen
Yes Bank Business Loan Availed in Mar 2015
Excellent service and competitive rates More
*My Finance Care Advisors Pvt. Ltd., or is a bank neutral multi bank platform that helps borrowers and bank customers compare loans and deposits of all banks in India at one place. Information carried at this website is based on perusal of public sources and should not be construed as an offer or solicitation or invitation to borrow or lend. The Company does not assure as to the correctness of information carried at the website. Lenders/ banks/ other parties may contact us at to provide corrections or updates. We may act as and/ or be associated with channel partners of banks and other sellers of financial products.
Business Loan News - Oct 2016
08th Oct 16 Small Scale Industries - RBL Bank, NeoGrowth and OPIC sign pact to finance SME in India
RBL Bank, Neo Growth Credit Pvt. Ltd and Overseas Private Investment Corporation (OPIC), the U.S. Government development finance institution have jointly committed to provide financing for small and medium enterprises (SMEs) in the Indian retail space. RBL Bank loan will allow Neo Growth to provide loans ranging from Rs. 200,000 to 7,500,000 to the retail SMEs.
04th Oct 16 Axis Bank sells Rs 1000 cr of Essar Steel debt to Edelweiss ARC
Axis Bank sold its loans to Essar Steel worth Rs. 1000cr to Edelweiss Asset Reconstruction Company at the discount of 45 per cent. Axis becomes the forth bank after HDFC( 550cr), ICICI( 1,600cr) and Federal bank( 70cr) to sell its loans to Essar steels raising the total amount of funds to Rs. 2,220 cr.
18th Sep 16 Haryana to give startups collateral-free loan up to Rs 1cr: CM Manohar Lal Khattar
On the occasion of Haryana golden jubilee year the Chief Minister has set up a Rs 1,000 crore corpus for the industry sector, particularly MSME sector. Under the provision for start ups collateral free loans up to Rs 1 crore will be given to entrepreneurs. In the scenario where the cost of capital is 16 percent, the startup fund is a welcome move.
17th Sep 16 SBI eyes 12 per cent SME loan growth in FY17
State Bank of India (SBI) is targeting12 percent growth in SME loans in the current financial year. This target is set in line with a massive growth of SME sector and muted demand for corporate loans. The bank is switching from balance sheet-based financing for SMEs to cash flow-based financing.
04th Sep 16 PNB current a/c holders to pay more for not having minimum balance - 04 Sept
Punjab National Bank will charge fine from October on current general account and PNB Smart Banking current account holders for not upholding the quarterly average balance as per the revised tariff. The charges for PNB Smart Banking silver account holders (QAB - Rs 1 lakh) hiked to Rs 500 per quarter. For gold account holders (QAB - Rs 2 lakh), the charges increased to Rs 1,000 and diamond account holders (QAB - Rs 5 lakh) will have to pay Rs 2,000 if their balance fall below Rs 5 lakh. Platinum account holders will have to pay Rs 4,000 if they fail to maintain Rs 10 lakh balance per quarter. For current general accounts, the bank has raised the initial deposit requirement as well as QAB for rural, semi urban and urban sectors.