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

Business Loan Interest Rates in India

Last Updated 09th Dec 2016
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Business Loan Interest Rates Comparison, Lowest EMI Dec 2016, Best rates

Bank Business Loan Interest Rates* Lowest EMI per lakh
Allahabad Bank
0/5
0 votes
10.05% - 15.55% Rs. 1,663 Explore More
Andhra Bank
0/5
0 votes
15.75% - 16.00% Rs. 2,419 Explore More
Bajaj Finserv
0/5
0 votes
14.00% - 20.00% Rs. 2,733 Explore More
Bank of Baroda
0/5
0 votes
14.10% - 14.10% Rs. 3,423 Explore More
Bank of Maharashtra
0/5
0 votes
14.50% - 15.50% Rs. 3,442 Explore More
Capital First
0/5
0 votes
16.00% - 24.00% Rs. 3,516 Explore More
Corporation Bank
0/5
0 votes
13.55% - 14.55% Rs. 2,304 Explore More
Development Credit Bank
0/5
0 votes
10.70% - 18.00% Rs. 1,118 Explore More
Dhan Laxmi Bank
0/5
0 votes
13.15% - 13.40% Rs. 2,283 Explore More
Fullerton India
0/5
0 votes
20.00% - 33.50% Rs. 3,043 Explore More
HDFC Bank
3.8/5
3 votes
16.25% - 19.75% Rs. 3,528 Explore More
ICICI Bank
0/5
0 votes
16.85% - 0.00% Rs. 2,035 Explore More
IDBI Bank
0/5
0 votes
13.00% - 14.00% Rs. 2,275 Explore More
Indian Overseas Bank
0/5
0 votes
14.90% - 15.25% Rs. 2,374 Explore More
IndusInd Bank
0/5
0 votes
14.00% - 23.00% Rs. 2,327 Explore More
Kotak Bank
0/5
0 votes
16.00% - 19.99% Rs. 2,432 Explore More
OBC
0/5
0 votes
11.95% - 11.95% Rs. 1,763 Explore More
PNB
0/5
0 votes
12.60% - 15.60% Rs. 2,255 Explore More
SBI
3.3/5
2 votes
11.20% - 16.30% Rs. 2,594 Explore More
Syndicate Bank
0/5
0 votes
14.45% - 14.45% Rs. 2,350 Explore More
Tamilnad Mercantile Bank
0/5
0 votes
13.40% - 14.40% Rs. 2,296 Explore More
United Bank of India
0/5
0 votes
14.15% - 14.15% Rs. 2,335 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 - Dec 2016
09th Dec 16 MSME ministry to consider increasing cash withdrawal limit for micro units
Ministry for Micro, small and Medium Enterprises (MSME) is planning to increase the cash withdrawal limit for MSMEs to Rs. 2 lacs per week. MSMEs in India are significantly dependent on cash transactions and hence any efforts to move them towards digitisation have to be a gradual process. The main objective of government is to boost the growth of MSMEs in digitisation but without any irregularities in cash availability.
02nd Dec 16 Credit deployment to MSME sector falls in October, 2016
Credit deployment of banks to industry including micro, small and medium enterprises has fallen by 4.6 percent during March to October, 2016 period as compared to 0.3 percent during the same period previous year. Key industry sectors such as infrastructure, food processing and gems and jewellery and basic metal products have witnessed significant credit contraction.
24th Nov 16 Microfinance lenders to suffer short term hit due to demonetization
Indian economy is suffering from its biggest currency denomination that affected various micro finance lenders. Shares of Satin Creditcare Networks (micro finance Company) fell by 36 percent. Micro finance companies take a serious short term hit because their operations are largely based on cash that have been severely affected.
23rd Nov 16 Aye Finance raises 10.3 million dollars to provide micro finance to small companies in India
Aye Finance, a two year old start up that provides micro finance to small companies, raised 10.3 million dollars from its own investors SAIF Partners and Accion. Funds were raised to provide micro finance to the small companies in India. Aye Finance operates a network of 31 branches across seven states in northern India.
21st Nov 16 NBFCs, Micro Finance Institutions await RBI directive on old currency
NBFCs and MFIs are waiting for directions from central bank to accept old currency notes after demonetization. Customers are required to pay 20 percent of business finance in advance and rest 80 percent is financed by lenders. Since NBFCs and MFIs have stopped accepting old notes after the currency ban, customers are facing difficulty in financing the required amount that is affecting the business badly.
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