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Best Banks for Business Loan in India

The need for business loan is increasing day by day. Every business having small funding goes for business loans only. If you are also willing to take the business loan then you can compare the best bank for a business loan in India. There are some private banks that grants a business loan at a low rate of interest.

Get a Business Loans from Various Banks in India

First of all, you must learn how to get a loan from a bank for business. There are many aspects that you have to monitor before applying for the loan like the rate of interest, tenure and many others. Here are some renown banks that provide hassle-free business loans.

HDFC Bank Business Loan

  • Avail loan up to ₹40 Lacs without collateral or any guarantor. (₹50 Lacs for some selected locations)
  • An overdraft facility from ₹5 Lacs to ₹15 Lacs.
  • Provides a repayment period of 12 months to 48 months.
  • SMS Chat and phone banking facilities are also available.
  • Payment protection insurance for accidental death.
  • Interest Rate Range falls between 12.75% to 21.70% per annum

Eligibility Criteria

  • Grants loan only to individuals, Proprietors and Private Ltd companies.
  • The business must be of Manufacturing, Trading or Services.
  • A minimum of ₹40 Lacs of turnover is necessary.
  • The business vintage period must be not less than 3 years.
  • ITR must be at least 1.5 Lacs.
  • The minimum age of the applicant must be 21 years and a maximum of 65 years.
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Fee and Charges

  • The processing fee charges is 2.50% on the loan amount with a minimum amount of ₹2359/- to a maximum of ₹88500/-.
  • Prepayment charges of 4% when the loan is closed between 7 months to 24 months.
  • Prepayment charges of 3% when the loan is closed between 25 months to 36 months.
  • 2% is charged as prepayment charges when the loan is closed after 36 months.
  • 2% per month is charged if the EMI is overdue.
  • ₹550 is charged when a check is bounced.

Axis Bank Business Loan

  • Get a loan of ₹50 Lacs from Axis Bank.
  • There is no need for collateral to be mortgaged.
  • It provides a maximum tenure of 36 months.
  • The rate of interest depends upon the business financial assessment and past track records.
  • Timely disbursement of the loan amount.
  • An online facility is available for applying for the loan.

Eligibility Criteria

  • The business must have a vintage period of at least 3 years.
  • The turnover of the business must be between ₹30 Lacs to ₹10 crores.
  • An applicant’s age must be 21 years to 65 years old.
  • The business must be a partnership, proprietorship, LLP, Pvt Ltd, Company business.

Fee and Charges

  • Axis Bank charges a processing fee of 1.25% to 1.50%.
  • ₹500 as cheque bounce charges.
  • A penal interest rate of 2% on the existing rate of interest.

ICICI Bank Business Loan

  • Get an overdraft facility under this scheme.
  • There is no need for a guarantor, collateral or security.
  • Get a loan up to ₹2 Crore.
  • Fast loan processing and disbursement.
  • The interest rate falls between 16% to 22% p.a
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Eligible Parties

  • Partnership firm
  • Sole Proprietorship
  • Private Limited Company
  • Micro and Small Enterprise
  • Public Limited Companies

Fee and Charges

  • A processing fee of up to 2% on the loan amount.
  • Guarantee fee of 0.75% to 0.85% for women enterprises in the North Eastern Region and 15 for others.
  • No Charges for foreclosure of the loan.

Kotak Bank Business Loan

  • Get a loan starting from ₹3 Lacs to ₹75 Lacs.
  • Grants business loan without collateral.
  • If the applicant submit all the documents then the bank approves a business loan within 72 hours.
  • The repayment tenure is 48 months.
  • Charge 18% to 23% p.a rate of interest.
  • Minimum paperwork and takes low processing time.

Eligibility Criteria

  • The business vintage period must be 3 years.
  • The minimum turnover of the business must be ₹40 Lacs.
  • A business must be in profit for at least 1 year.
  • The business must be either of manufacturing, trading or a service provider.
  • Grants loans to proprietor, partnership firm, private company, trust and LLP only.
  • The applicant’s age must be from 25 years to 65 years.

Fee and Charges

  • Charge a processing fee of 2% plus GST on the loan amount.
  • Documentation charges of ₹3500 plus GST when the loan is less than ₹10 Lacs.
  • Documentation charges of ₹6000 plus GST when the loan is greater than ₹10 Lacs.
  • Cheque dishonour charges are ₹750.

IDFC First Bank Business Loan

  • Avail a business loan from ₹1 Lacs to ₹9 Lacs.
  • The repayment period of the business loan is 4 years.
  • No need of any collateral security.
  • Comprehensive loan insurance on the sanctioned amount.
  • The range of the rate of interest is 16% to 24% per annum.
  • Door step pickup of all the necessary documents.
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Eligibility

  • Self-Employed Professionals
  • Sole Proprietorship firm
  • Partnership firm
  • Private Limited Companies
  • MBBS, BDS and MOS doctors.

Fee and Charges

  • A processing fee of 2.49% on the loan amount.
  • Foreclosure fee of 5% on the remaining principal amount.

Some Mandatory Documents Demanded by all Banking Institutions

Now, you know the best bank of business loans in India. But all of them have a common choice of documents. You can see the list given below.

  • Identity Proof- Pan card, Aadhaar Card, Voter I.D, Passport, Driving License, (Anyone)
  • Residential Address Proof- Rent Agreement, Phone Bills, Electricity Bill, Passport, Driving License, Aadhaar Card.
  • Business Continuity Proof- Bank Statement, ITR Statement, Balance Sheet, Registration Certificate, Rent Agreement.
  • Passport Size Photographs, of the Applicant and Co-Applicants.
  • All the documents of the existing loan.(if Any)
  • Audited financial records by a qualified chartered accountant.
  • Memorandum of Association, AOA and Certificate of Incorporation for a company.

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Personal Loan Interest Rates November 2019
Bajaj Finserv10.99% - 16.00%
Fullerton India14.00% - 33.00%
HDFC Bank10.75% - 21.45%
ICICI Bank10.99% - 18.40%
IndusInd Bank10.99% - 16.00%
Kotak Bank10.99% - 20.99%
RBL13.00% - 18.00%
Standard Chartered Bank11.50% - 18.00%
Tata Capital10.99% - 18.00%
Home Loan Interest Rates November 2019
State Bank of India/SBI8.15% - 8.80%
HDFC8.25% - 9.30%
LIC Housing8.35% - 8.95%
PNB Housing Finance9.25% - 12.00%
Piramal Capital & Housing Finance9.00% - 9.10%
Tata Capital9.20% - 9.35%
ICICI Bank9.20% - 9.65%
Bank of Baroda8.40% - 9.40%
Axis Bank8.90% - 9.15%
Citibank9.00% - 9.85%
Indiabulls Housing Finance Limited8.80% - 11.05%
Kotak Bank8.90% - 8.75%
DHFL9.05% - 9.95%
Reliance Home Finance8.75% - 14.00%