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Lowest Interest Rate Business Loan
Banks with lowest Business Loan Rates
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 |
---|---|---|---|
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 |
Syndicate Bank | 12.65% | 0.5%, Min Rs. 500 | 60 Months |
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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 |
Lendingkart | 18.00% | 2% 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 | 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 |
Indifi | 24.00% | 2 to 3% | ₹ 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 |
---|---|---|
Ftcash | 18.00% | ₹ 6,00,000 |
Lendingkart | 18.00% | ₹ 6,00,000 |
Bajaj Finserv | 18.00% | ₹ 12,00,000 |
IDFC First Bank | 22.00% | ₹ 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 |
---|---|---|
Yes Bank | 16.25% | ₹ 1,00,00,000 |
Tata Capital | 21.00% | ₹ 1,00,00,000 |
HDFC Bank | 15.65% | ₹ 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 |
Ftcash | 18.00% | 2% of loan amount | 1 Years |
IndusInd Bank | 14.00% | 2.50% | 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 |
Lendingkart | 18.00% | 2% of loan amount | 12 Months |
SBI | 11.20% | From 2% to 3% | 24 Months |
IDBI Bank | 12.25% | 1.00% | 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?
SBI, IDBI Bank, OBC, PNB, Syndicate Bank 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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