Business Loan

Paisabazaar offers unsecured business loans from 20+ banks and NBFCs, ranked by approval chances. Businesses can compare offers and apply for the best-suited loan with confidence. The platform provides a smooth and fully digital application process, ensuring quick approval and a hassle-free experience.

Compare Offers from Top Lenders

At Paisabazaar, the task of comparing loans is made simple and easy. Paisabazaar lists the best business loan offers from top lenders based on your eligibility all in one place, enabling easy comparison of interest rates, processing fees, tenure and more.

Competitive Business Loan Rate of Interest

With interest rates starting from just 14.99%, Paisabazaar helps you find the lowest business loan interest rate from leading banks and NBFCs.

No Need for Multiple Application

Reduce the turnaround time of your loan journey with Paisabazaar. Get the best suited business loan offers from 20+ lenders based on your eligibility with just one loan application.

Top Up Facility

Avail top up loans to get additional funds to meet any urgent financial needs. Apply in easy steps and get funds disbursed quickly into your bank account.

Highest Approval Chances

By matching your profile with lenders’ criteria, Paisabazaar ensures you see only the most relevant offers, reducing the risk of rejection. This way, you save time, improve your chances of instant approval, and move faster towards disbursal.

End-to-End Expert Support

When you apply at Paisabazaar, you get end-to-end assistance throughout the business loan journey. For every query, inconvenience or difficulty, there’s a hand to hold.

Running a business comes with a lot of expenses, both planned and unplanned. Business loans provide businesses with timely funds to help them stay afloat and grow their business simultaneously.  Common reasons for availing a business loan are discussed below:

Lenders offer various business loan schemes to suit the varying operational and sector/industry-specific requirements of businesses. Hence, before making a choice, prospective borrowers should understand these schemes, their cost, repayment structures, etc. and how they align with the financial and operational requirements of their businesses.

Unsecured Term Loans

MSMEs can avail collateral-free loans to meet their short-term as well as long-term business needs, such as expansion of operations, technology upgradation and meeting cash flow requirements.

Working Capital Loans

Working capital loans are availed to meet a company’s everyday financial requirements, such as payroll, rent, daily operations, seasonal financial needs, etc.

Secured Term Loans

These loans are offered against collateral like immovable property, existing business assets, financial instruments, etc.

Unsecured Overdraft Business Loan

An unsecured credit line wherein applicants can make withdrawals within a predetermined limit.

Secured Overdraft Business Loan

Existing customers can avail this credit line to finance their business operations and cash flows by mortgaging their properties, financial instruments, etc.

Professional Loan

These loans are offered to self-employed professionals to finance their various profession-related requirements.

Bill Discounting

This credit facility allows businesses to raise finance by selling their invoices/receivables before their due dates to the lenders at a discount.

Equipment/Machinery Finance

This credit facility allows businesses to finance their machinery/equipment purchases.

Purchase Financing

Lenders offer this loan to manufacturers, traders and service providers to pay for the raw materials and trading goods purchased from the suppliers.

Letter of Credit

This is a payment guarantee issued by the lender that enables traders or exporters operating in international trade to minimise their credit risk.

POS (Point of Sale) Loans

These Merchant Cash Advances are offered to merchants based on the POS swipes and repaid through future POS transactions.

Business loan offers vary depending on specific financial needs as per the business type, size, industry, sector, etc. Applicants can choose the most suitable loan option depending on their industry-specific requirements and the category they fall into.

Business Loans for Startups

Business Loans for Women Entrepreneurs: Special rates/schemes.

Loans for Manufacturers

Loans for Traders/Retailers

Loans for Doctors & Professionals

Understanding the differences between secured and unsecured business loans can help enterprises make right financial decisions. The table provided below helps compare both loan types and evaluate the most suitable option.

Interest rates on business loans may vary from lender to lender depending on the credit profile of the applicant, nature of the business, loan facility availed and the type of collateral/security pledged.

Business loans availed in the form of term loans are repaid through EMIs. Thus, those planning to avail business loans can calculate EMIs using the formula as below:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1],

where,

‘R’ denotes the rate of interest

‘P’ denotes the principal amount

‘N’ denotes the loan tenure

As manual calculations can be tedious and susceptible to errors, using an online business loan EMI calculator can be a faster and more reliable option for consumers.

This calculator requires only a few key details, such as the interest rate, loan amount and tenure, to compute the EMI.

Once you input these details, the calculator instantly provides the EMI, total interest payable and amortization schedule, allowing you to compare different business loan options based on your repayment capacity.

For a smooth and seamless experience, applicants should follow best practices and take into account the following:

Interest Rate Type

Business loans are usually offered at fixed interest rates. However, a few lenders may offer business loans at floating interest rates as well. If given a choice, select the interest type based on your cash-flow stability, risk appetite, and long-term business plans, as this will directly impact repayment predictability and overall cost.

Lender Type Differences

Public sector banks, private banks, NBFCs, and fintechs have different approval timelines, risk appetites, benefits and limitations. Select your lender carefully to maximize your benefits.

Credit Score/Rating

Applicants with a credit score of 700 and above or a strong credit rating usually have higher chances of approval. Some lenders also offer business loans at lower interest rates to those with a high credit score/rating. Low scores/poor ratings can lead to rejection or a higher cost of credit.

Processing Charges

Processing fees and other charges may vary based on the applicant’s profile. Try to negotiate the best offer with the lowest processing fee.

Prepayment Rules

Most lenders levy rules on prepayment or foreclosure, including lock-in periods, charges on prepayment and more. Being aware of these terms helps you plan your loan journey better.

EMI Affordability

Before you take a loan, it is pertinent to understand your EMI affordability to avoid missed EMI payments. Use a business loan EMI calculator to try various combinations of loan amount, tenure and interest rate and choose the one with the most comfortable EMIs. 

Loan Tenure Selection

The longer the tenure, the smaller the EMIs but the higher the total interest cost. The shorter the tenure, the higher the EMIs but the lower the total interest outgo. Choose a tenure as per your future business plan and EMI affordability to ensure smooth repayments.

Small businesses can avail business loans under various government schemes to start or expand their businesses and provide employment to others. Some of the most important government loan schemes are discussed below:

PMMY (Pradhan Mantri Mudra Yojana)

The government enables non-corporate, non-farming, small and micro enterprises to avail business loans under the Pradhan Mantri Mudra Yojana (PMMY) through designated banks, NBFCs, MFIs and other financial institutions that can help these entities grow their businesses.

Enterprises can avail loans under PMMY in four designated categories:

PSB Loans in 59 Minutes

CGTMSE Scheme (Credit Guarantee Fund Trust for Micro and Small Enterprises)

SMILE (SIDBI Make in India Soft Loan Fund for MSMEs)

PMEGP (Prime Minister’s Employment Generation Programme)

Stand-Up India

Vijay Pal Sharma - For Expanding Medical Store Business

I run Vijay Pal Pharmacy in Gurgaon. I got an opportunity to open one more medical store in the main market but did not have enough money for it. I applied for the business loan by visiting the Paisabazaar seva kendra and my loan was approved. I was surprised that the loan amount was credited in just a week’s time.

Sourabh Jain - For Bus Business

I run bus service from Jaipur to nearby cities and when I needed a loan to set up offices in Ahmedabad, Udaipur and Kota, I applied for the loan through Paisabazaar app. The credit person guided me in applying for the business loan, submitting the required documents and getting the loan approval directly from my office. I think the way they helped me collect all documents beforehand and submit them as required made the approval very smooth.

Devanshu Kohli - Loan for My RC Drone Startup

My startup for low-cost RC Drones needed funds but we weren’t getting funding from anyone as it’s a new venture. However, when I connected with Paisabazaar, they helped me secure a loan worth 40 lakh. Initially it was difficult convincing any lender but the support from Paisabazaar guys helped a lot. If you genuinely need funds for your startup, do give a try with Paisabazaar.