Lowest Interest Rate 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.

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.

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.

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.

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.

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%.

✅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%.