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Lowest Interest Rate Business Loan

Banks with lowest Business Loan Rates

Last Updated 23rd Sep 2020

Currently, UCO Bank offers the lowest business loan interest rate of 10.70% and hence, is one of the best banks for business loan. The bank charges a processing fee of Upto 0.50%; Max Rs. 20,000. In addition, UCO Bank business loan can be availed for a maximum tenure of 60 months.

Banks Interest Rate Processing Fees Loan Tenure
UCO Bank 10.70% Upto 0.50%; Max Rs. 20,000 60 Months
SBI 11.20% From 2% to 3% 48 Months
IDBI Bank 12.25% 1.00% 60 Months
OBC 12.65% 0.50% of Loan Amount 84 Months
PNB 12.65% 1.8% + taxes 60 Months

Best Banks for Business Loan

A business loan is a popular loan facility that is offered by a number of leading banks and NBFCs. It is availed by business owners to add more to their business enterprises and can be used for different purpose. A business loan is ideal for funding day-to-day expenses of business, purchasing plant & machinery, or building infrastructure amongst other reasons. Thereby, one must access various parameters to choose a business loan that best fits his or her business needs.

The parameters on which the loan must be accessed are interest rates, loan tenure, processing fee, customer service and product features such as loan amount, min ITR requirements, business turnover, overdraft facility. Making a comparison on such parameters across different business loan lenders will help one brag the best business loan.

Banks offering high value loans

Business loans are offered by various Government banks and Non-Banking Financial Companies (NBFCs) at varying terms and conditions. Amongst all business loan lenders some offer discounted interest rates for high value business loans above ₹ 20 Lakh. The list of top ten lenders that offer the lowest business loan interest rates on loan amount above ₹ 20 Lakh are listed below:

Bank name Interest Rate Processing Fee Loan Amount
SBI 11.20% From 2% to 3% ₹ 1,00,00,00,000
Corporation Bank 13.55% 1.5%, Min Rs. 500 ₹ 5,00,00,000
Dhan Laxmi Bank 12.90% Nil ₹ 5,00,00,000
UCO Bank 10.70% Upto 0.50%; Max Rs. 20,000 ₹ 2,00,00,000
Lendingkart 18.00% 2% of loan amount ₹ 1,00,00,000
Kotak Bank 16.00% Upto 2% ₹ 75,00,000
IDFC First Bank 22.00% 2.00% ₹ 75,00,000
Yes Bank 16.25% Up to 2% ₹ 50,00,000
HDFC Bank 15.65% Starting from 0.99%, Max 2.50% ₹ 50,00,000
Tata Capital 21.00% From 1.50% to 2.50% ₹ 50,00,000

Thus, on the basis of the loan amount, SBI offers the lowest business loan interest rate of 11.20% for high value loans above ₹ 20 Lakh.

Banks offering Loans at Low Turnover

A number of business loan lenders offer customized loans to small business owners who own a business unit with a minimum turnover of ₹ 6 Lakh and above. So, even when your business is set up on a small scale, you can reach new heights and enhance the business development by opting a lender that understand your financial standing. Some of the lenders offering lowest interest to businesses with low turnovers are listed as follows:

Bank Interest Rates Minimum Turnover
Lendingkart 18.00% ₹ 6,00,000
IDFC First Bank 22.00% ₹ 12,00,000
Bajaj Finserv 18.00% ₹ 12,00,000

Lendingkart offers the lowest business loan interest rate to small business owners starting from 18.00%. The bank charges a processing fee of 2% of loan amount and allows borrowing the fund for a maximum tenure of 3 years.

Banks offering Loans at High Turnover

While there are some business loan lenders that provide loans even at low business turnover, some lenders prefer lending business loans only to business units that hold a turnover above ₹ 50 Lakh. So, if you are business loan borrower with a high business turnover above ₹ 50 Lakh, some of the banks offering the lowest interest rates are as follows:

Bank Interest Rates Minimum Turnover
HDFC Bank 15.65% ₹ 1,00,00,000
Yes Bank 16.25% ₹ 1,00,00,000
Tata Capital 21.00% ₹ 1,00,00,000
ICICI Bank 16.49% ₹ 60,00,000

Currently, HDFC Bank offers the lowest business loan interest rate of 15.65% to business units with high turnover above ₹ 50 Lakh.

Banks offering Business Loan to Low Business Experience

Most of the business loan lenders ensure the stability of a business by taking in consideration the business experience of minimum three years. However, there are various lenders that offer business loan to existing business with a vintage of below three years. Some of the banks that offer business with minimum business stability are listed as follows:

Bank Interest Rates Processing fee Minimum Business Existence
Corporation Bank 13.55% 1.5%, Min Rs. 500 1 Years
Lendingkart 18.00% 2% of loan amount 1 Years
Neogrowth 19.50% 2.5% of loan amount 1 Years
IndusInd Bank 14.00% 2.50% 2 Years
UCO Bank 10.70% Upto 0.50%; Max Rs. 20,000 2 Years

Thus, Corporation Bank offers the lowest interest rate of 13.55% to existing businesses with low business experience of 1 Years.

Banks offering Business Loans based on ITR

Business loan lenders consider and evaluate the ITR in order to access the profitability of the business unit and the savings and investments portfolio. Thus, ITR is an important eligibility parameter for availing a business loan and most lenders seek a minimum ITR of two years. However, some lenders even lend business loan with a minimum ITR of one year or more. They are listed as follows:

Bank Interest Rates Processing fee Minimum ITR
Allahabad Bank 14.50% Rs. 229 - per lac, Min Rs. 2,038 Max Rs. 22,928 12 Months
RBL Bank 16.25% 1.80-2.20% of loan amount 12 Months
SBI 11.20% From 2% to 3% 24 Months
IDBI Bank 12.25% 1.00% 24 Months
OBC 12.65% 0.50% of Loan Amount 24 Months

Thus, Allahabad Bank is the best bank for new business owners, who have there ITR filled for only 12 year. The bank offers business loan at the lowest interest rate of 14.50%.

FAQs

Which bank is best for lowest business loan interest rates?

As per the current rates, UCO Bank is offering the lowest interest rate on business loan starting at 10.70% and is one of the best banks for business loan.

Which bank is best for business loan based on low turnover?

Lendingkart is the best bank to take a business loan as it offers business loan at a minimum turnover of ₹ 6,00,000.

Which bank is best for business loan?

UCO Bank, SBI, IDBI Bank, OBC, PNB are considered as the best banks for business loan as they are highly customer focussed and offer easy process and quick turn around on business loan.

What is the lowest rates on business loan overdraft facility?

Bajaj Finserv offers lowest business loan rates on overdraft facility starting at 18.00%.


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