- Compare Business Loan Interest Rates of Different Financial Institutions and Take an Appropriate decision.
- Determine the Maximum Loan Amount of Different Institutions and Apply for the Same.
Business Loan Interest Rates – Is there any shortage of funds in your business? Do you need some financial help in your business expansion? If yes, then a business loan would be the best option for you. But before you should apply for the loan, you must review the Rate of Interest and Processing Fee of all the institutions. So, you can compare the rate of interest from the table mentioned below and take an effective decision for your business expansion.
Business Loan Interest Rates Comparison
|Bank's Name||Rate of Interest||Processing Fee||Loan Amount|
|SBI||9.50% - 16.30% p.a (Linked to MCLR)||₹7500||Upto ₹20 Crores|
|TATA Capital||Starting from 19% p.a||2.75% of loan + GST||₹5 Lac to ₹50 Lacs|
|LendingKart||1% - 2% p.m||1% to 2% (only once)||₹50,000 to ₹2 Crores|
|ZIP Loan||23% - 29% p.a||3% of Loan||₹1 Lac to ₹5 Lacs|
|IDFC First Bank||19% - 24% p.a||Upto 3.5% of Loan||Up to ₹40 Lacs|
|ICICI Bank||16% - 22% p.a||Upto 2%||Up to ₹1 Crore|
|HDFC Bank||12.50% - 19.50% p.a||2% of Loan||Upto ₹50 Lacs|
|Axis Bank||14.25% - 20% p.a||1.25% to 1.50%||Upto ₹50 Lacs|
|Central Bank of India||8.70% - 12.80% p.a||NIL||Up to ₹5 Lacs|
|South Indian Bank||MCLR (1 Year) + 4.2%||Upto 2%||₹5 Lac to ₹1 Crore|
|Yes Bank||16.25% onwards||2% of Loan||₹5 Lac to ₹50 Lacs|
|Kotak Mahindra Bank||17% - 28% p.a||2% of the loan amount||₹3 Lac to ₹2 Crore|
|DCB Bank||10.25% - 18.67% p.a||2% of Loan||Up to ₹10 Lacs|
|RBL Bank||20% onwards p.a||3% of Loan||₹10 Lacs to ₹35 Lacs|
|Bandhan Bank||10.55% - 18.80% p.a||1% + GST||Up to ₹25 Lacs|
|Bajaj Finserv||18% onwards p.a||2% of Loan||Up to ₹30 Lacs|
|Fullerton India||13% - 21% p.a||Upto 6.5%||Up to ₹50 Lacs|
|Aditya Birla||17% - 26%||Upto 2% of Loan||Up to ₹15 Lacs|
|Punjab National Bank||MCLR + 1.25% p.a||Mini. ₹500||₹50000 to ₹15 Lacs|
|Pay Sense||2% - 3% p.m||3% + GST||₹5000 to ₹5 Lacs|
Top Financial Institutions for Business Loans
It is easy to get a business loan from HDFC Bank because there are less paperwork and formalities. The rate of interest fall between the range of 12.50% to 19.50% per annum. You can also get the loan upto ₹50 Lacs if all the documents are fine to be accepted by the bank. The limitation of processing fee is 2% with a minimum limit of 0.99%. You will also get a time of 12-48 months for the repayment of the loan.
In Yes Bank Business Loan the loan amount starts from ₹5 Lac to a limit of ₹50 Lacs. The interest rate starts from 16.25% per annum and every borrower gets a period of 6 months to clear the loan amount. Yes Bank charges the processing fee of 2% on the loan amount of loan sanctioned to the applicant and give exiting offers of online banking and net banking.
IDFC First Bank
IDFC First Bank usually charges a 19% to 24% rate of interest on Business Loan. The maximum limit of getting a loan from IDFC First Bank is ₹40 Lacs. You just have to present all the necessary documents to the bank in order to avail the amount of ₹40 Lacs as a business loan. The processing fee of IDFC First Bank Business Loan is 2% on the loan amount and the bank allows a repayment period of 3 years.
Avail Bajaj Finserv Business Loan up to ₹30 Lacs at the rate of 18% onwards per annum and it may vary according to the institution policy. The institution charges a processing fee of 2% on the loan amount sanctioned to the applicant. The tenure for repayment provided by the bank is between 1 year to 4 years.
Lendingkart is the only financial institution that charge the rate of interest on monthly basis. You can easily get the business loan from Lendingkart at the rate of 1% to 2% chargeable every month. On the other hand, you can avail a minimum loan amount of ₹50,000 to ₹2 Crores from Lendingkart. The processing fee is between 1%-2% charged only once.
Factors Determining the Rate of Interest
Loan Amount – The responsible factor in the rate fluctuations is the loan amount. Many financial institution reduce the rate of interest if the applicant applies for a higher amount of loan. On the other hand, if the applicant is having a good relationship with the concerning lending party then the rates are negotiable.
Tenure – The tenure of the loan also affects the rate of interest. The lesser you take the time in repayments, the lesser will be the interest. The rate of interest might remain the same but the interest amount on the principle value may vary if the repayment is done before the given time period.
Applicant’s Efficiency – If the applicant is having sound financial status then the lending institutions also negotiate with the rate of interest. Therefore, the efficiency of clearing the loans of the applicants also affects the rate of interest.
Apply For Business Loan
If the rate of interest and the loan amount has impressed you, then you can easily apply for the same on Wishfin. You can either chat on the Online portal or just your mobile number on Wishfin Whatsapp chat and our representative will get in touch with you as soon as possible. Share you business loan requirement and get the best loan plans at a lower rate of interest.