Business loan Interest Rate - HDFC, SBI, Bajaj, ICICI Bank, All Banks

Business Loan Interest Rates in India

Last Updated 24th Jan 2017
  • 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 Jan 2017, Best rates

Bank Business Loan Interest Rates* Lowest EMI per lakh for max tenure
Allahabad Bank
0/5
0 votes
11.10% - 15.55% Rs. 1,718 for 84 months Explore More
Andhra Bank
0/5
0 votes
15.75% - 16.00% Rs. 2,419 for 60 months Explore More
Bajaj Finserv
0/5
0 votes
14.00% - 20.00% Rs. 2,733 for 48 months Explore More
Bank of Baroda
0/5
0 votes
14.10% - 14.10% Rs. 3,423 for 36 months Explore More
Bank of Maharashtra
0/5
0 votes
14.50% - 15.50% Rs. 3,442 for 36 months Explore More
Capital First
0/5
0 votes
16.00% - 24.00% Rs. 3,516 for 36 months Explore More
Corporation Bank
0/5
0 votes
13.55% - 14.55% Rs. 2,304 for 60 months Explore More
Development Credit Bank
0/5
0 votes
10.70% - 18.00% Rs. 1,118 for 180 months Explore More
Dhan Laxmi Bank
0/5
0 votes
13.15% - 13.40% Rs. 2,283 for 60 months Explore More
Fullerton India
0/5
0 votes
20.00% - 33.50% Rs. 3,043 for 48 months Explore More
HDFC Bank
3.8/5
3 votes
16.25% - 19.75% Rs. 3,528 for 36 months Explore More
ICICI Bank
0/5
0 votes
16.85% - 0.00% Rs. 2,035 for 84 months Explore More
IDBI Bank
0/5
0 votes
13.00% - 14.00% Rs. 2,275 for 60 months Explore More
Indian Overseas Bank
0/5
0 votes
14.90% - 15.25% Rs. 2,374 for 60 months Explore More
IndusInd Bank
0/5
0 votes
14.00% - 23.00% Rs. 2,327 for 60 months Explore More
Kotak Bank
0/5
0 votes
16.00% - 19.99% Rs. 2,432 for 60 months Explore More
OBC
0/5
0 votes
11.95% - 11.95% Rs. 1,763 for 84 months Explore More
PNB
0/5
0 votes
12.60% - 15.60% Rs. 2,255 for 60 months Explore More
SBI
3.3/5
2 votes
11.20% - 16.30% Rs. 2,594 for 48 months Explore More
Syndicate Bank
0/5
0 votes
14.45% - 14.45% Rs. 2,350 for 60 months Explore More
Tamilnad Mercantile Bank
0/5
0 votes
13.40% - 14.40% Rs. 2,296 for 60 months Explore More
United Bank of India
0/5
0 votes
14.15% - 14.15% Rs. 2,335 for 60 months Explore More

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 Reviews
3.8/5  by 6 customers
Interest Rate
  3.7/5
Fees & Charges
  3.8/5
Pre - Sales Service
  3.7/5
Post - Sales Service
  4/5
Customer Reviews
Suresh gamare, Mumbai
Reviewed on 05th Apr 16
4 / 5 stars
Review
HDFC Bank Business Loan Availed in Mar-16
excellent and fast loan proessing with no hidden charges More
Sachin Deshpandey, Mumbai
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
Suneel Singh, Delhi
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
Deepak Parmar, Pune
Reviewed on 02nd Apr 16
3.5 / 5 stars
Nice
HDFC Bank Business Loan Availed in Jan-16
Took loan for my business. Overall experience was good More
Yogendera Rawat, Delhi
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
Anuj Goenka,
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
Business Loan News - Jan 2017
24th Jan 17 Indian NBFCs raises Rs. 29, 000 crore via NCDs during FY 17
Indian NBFCs have raised a total funding of Rs. 29, 000 crore via non convertible debentures (NCDs) in the current fiscal year. Under the arrangement, DHFL raised funds worth Rs. 14, 000 crore through NCDs in the current financial year. The funds will be utilised for financing expansion plans, retiring debt, supporting working capital requirements and for other corporate investments. NCDs are loan linked bonds that are not convertible into stock and carry higher rate of interest than that of convertible debentures.
23rd Jan 17 Utkarsh Micro Finance to launch its small bank on 23rd January, 2017
Utkarsh Micro finance is set to initiate its banking operations from 23rd January, 2017. The new small bank expects to set up 490 branches by March, 2018. Utkarsh is the third company to start its banking operations with a small bank license.
21st Jan 17 Panel of 12 members to promote growth of MSME sector in Andhra Pradesh
District administration of Andhra Pradesh has set up a committee of 12 members to promote the growth of MSME sector. The plans to hold discussions with representatives of large industries to identify the measures required to promote MSMEs growth in the state of Andhra Pradesh.
20th Jan 17 Pay Pal enables MSMEs to expand their overseas business and launches PayPal Entrepreneur contest
PayPal, a leading online payment platform enables MSMEs to extend their business operations overseas through its web portal. The medium and small enterprises can register their business along with their bank accounts on the PayPal portal to perform transactions with different sellers. Under the arrangement, PayPal has also launched a PayPal Entrepreneur Contest for MSMEs.
19th Jan 17 Government to increase the corpus of MSE credit guarantee fund
Central government of India is likely to augment the corpus of Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE) by Rs. 5, 000 crore. Under the scheme, the business loan limit will increase from Rs. 1 crore to Rs. 2 crore. The scheme is likely to be extended to loans offered by NBFCs. Currently, it is available only on loans offered by banks. The CGTMSE trust provides fund to banks for lending to MSMEs and is funded by Central Government of India.
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