Lowest Interest Rate Business Loan

At present, SBI offers the lowest rates on business loans starting at 11.20%. To get the lowest business loan interest rate in India, you must compare the business loan rates of top banks. Along with that, you must also make a detailed comparison of various other business loan charges, including processing fees, prepayment & foreclosure charges. The loan amount sanctioned under business loan can be used for day-to-day funding expenses of the business, purchasing plant & machinery, or building infrastructure, amongst other reasons. The table below mentions the top 10 Banks/NBFCs with the lowest business loan rates.

Bank/NBFC	Rate of Interest	Processing Fees	Prepayment & Foreclosure Charges
DCB Bank	9.25 % -16.00%	Upto 2% of the loan amount	Allowed after 6 EMI's, 7-36 Months: 4%, >36 Months: 6%
Dhan Laxmi Bank	10.50 % -13.10%	Upto 3% of the loan amount	Allowed after 6 EMI's, 3%
Indian Overseas Bank	11.00 % -15.00%	upto 3% of the loan amount	Allowed after 1 EMI's,
SBI	11.20 % -16.30%	From 2% to 3%	Allowed after 0 EMI's, 3%
HDFC Bank	11.90 % -21.35%	₹ 499	Not allowed
OBC	11.95 % -%	0.50% of Loan Amount	Allowed after 0 EMI's, Nil Prepayment Charges
Lendingkart	12.00 % -24.00%	2% to 3% of loan amount	Not allowed
IDBI Bank	12.25 % -13.50%	1.00%	Allowed after 1 EMI's,
PNB	12.65 % -15.65%	1.8% + taxes	Allowed after 0 EMI's, Nil prepayment charges
Syndicate Bank	12.65 % -13.65%	0.5%, Min Rs. 500	Allowed after 0 EMI's, Nil prepayment charges

Here are some more tips that will help you to avail best interest rates for business loans:

• You must maintain financial stability along with good loan repayment history.
• Check your free credit score regularly and improve your CIBIL score up to 700 or above.
• To Improve your creditworthiness, you must repay all your credit card dues and EMIs on time.
• You should apply for a long-term business loan to avail of a loan at low rates.
• Having a good relationship with the bank also helps to avail of a loan at a low rate.
• Submit all the required documents that furnish correct information, authentic and audited by CA.
• You must submit valuable collateral or security if required for a secured business loan.

Business loans are offered by various 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	10.50%	Upto 3% of the loan amount	₹ 5,00,00,000
OBC	11.95%	0.50% of Loan Amount	₹ 2,00,00,000
Lendingkart	12.00%	2% to 3% of loan amount	₹ 1,00,00,000
Ftcash	18.00%	2% of loan amount	₹ 1,00,00,000
Kotak Bank	16.00%	Maximum 2% of the loan	₹ 75,00,000
Yes Bank	16.25%	Up to 2%	₹ 50,00,000
HDFC Bank	11.90%	₹ 499	₹ 50,00,000
Tata Capital	19.00%	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.

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 avail a business loan. Some of the lenders offering lowest interest to businesses with low turnovers are listed as follows:

Bank	Interest Rates	Minimum Turnover
Lendingkart	12.00%	₹ 90,000
Ftcash	18.00%	₹ 6,00,000
IDFC First Bank	19.00%	₹ 12,00,000
Bajaj Finserv	18.00%	₹ 12,00,000

Lendingkart offers the lowest business loan interest rate to small business owners starting from 12.00%. The bank charges a processing fee of 2% to 3% of loan amount and allows borrowing the fund for a maximum tenure of 3 years.

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	11.90%	₹ 1,00,00,000
RBL Bank	18.50%	₹ 1,00,00,000
Tata Capital	19.00%	₹ 1,00,00,000
Yes Bank	16.25%	₹ 1,00,00,000
ICICI Bank	16.50%	₹ 60,00,000

Currently, HDFC Bank offers the lowest business loan interest rate of 11.90% to business units with high turnover above ₹ 50 Lakh.

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 a business loan to existing businesses 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
PNB	12.65%	1.8% + taxes	1 Years
Andhra Bank	15.75%	Case to Case	1 Years
Lendingkart	12.00%	2% to 3% of loan amount	1 Years
Neogrowth	24.00%	Upto 3% of loan amount	1 Years

Thus, Lendingkart offers the lowest interest rate of 12.00% to existing businesses with low business experience of 1 Years.

Business loan lenders consider and evaluate the ITR in order to assess 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 loans with a minimum ITR of one year.They are listed as follows:

Bank	Interest Rates	Processing fee	Minimum ITR
Lendingkart	12.00%	2% to 3% of loan amount	12 Months
PNB	12.65%	1.8% + taxes	12 Months
Allahabad Bank	14.50%	Rs. 229 - per lac, Min Rs. 2,038 Max Rs. 22,928	12 Months
Andhra Bank	15.75%	Case to Case	12 Months
RBL Bank	18.50%	2.50-3.00% of loan amount	12 Months

Thus, Lendingkart is the best bank for new business owners, who filed their ITR for only 12 months. The bank offers business loans at the lowest interest rate of 12.00%.

✅Which bank is best for lowest business loan interest rates?

As per the current rates, DCB Bank is offering the lowest interest rate on business loan starting at 9.25% and is one of the best banks for business loan.However, based on processing fee, currently DCB Bank, offers business loans at lowest processing fee of Upto 2% of the loan amount.

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

Lendingkart is the best bank to take a business loan as it offers a business loan at a minimum turnover of ₹ 90,000 Other banks that offer business loans at low turnover are Ftcash, Bajaj Finserv and IDFC First Bank.

✅Which bank is best for business loan?

DCB Bank, Dhan Laxmi Bank, Indian Overseas Bank, SBI, HDFC Bank are considered as the best banks for a business loan as they are highly customer focussed and offer easy process and quick turn around on business loan. However, based on business loan interest rate DCB Bank is the best bank for business loan offering business loan at 9.25% currently.

✅What is the lowest rates on business loan overdraft facility?

Fullerton India offers lowest business loan rates on the overdraft facility starting at 17.00%.

✅What is a good interest rate on a business loan?

A good interest rate on a business loan is an interest rate that is lower than the national average. Currently, the lowest interest rate offered on business loans is 14.00%.

✅What are the factors that affect Low Business Loan Interest Rate?

Some of the factors that may affect your eligibility for a low business loan interest rate are CIBIL Score, business turnover and profitability, type of business, business plans for the future and collateral.

✅Can I negotiate with banks for Commercial Loan Interest Rates?

Yes, you can negotiate with banks for commercial loan interest rates if you have a good relationship with the bank along with sound business stability, revenue and CIBIL score. Chances of negotiation are more, if you maintain a savings or current account with the bank already.

✅What is the HDFC Business Loan Interest Rate?

As per the current rates, HDFC Business Loan Interest Rate starts at 11.90%. HDFC Bank also charges a processing fee of ₹ 499.