Business Loan

Below are the mentioned key features and benefits of applying for a business loan with Paisabazaar:

You can compare & apply for a quick business loan on Paisabazaar online marketplace without visiting a branch.

1. 1. Enter your basic details : Enter your name (as on PAN) & mobile number and click "Apply Now".
   2. Verify with OTP : Enter the OTP to verify your mobile number.
   3. Share business details : Share your personal and business required details.
   4. Compare offers and apply : Review the business loan offers you are eligible for and apply online for the one that suits you as per your eligibility.

Keep these Documents Handy: PAN, Aadhaar, business registration proof (such as Udyam), recent bank statements and GST returns. See the full business loan documents required list.

Before you Apply: Check your credit score with a free credit score check and estimate your repayments with the business loan EMI calculator.

MSMEs can check their registration requirements and complete eligible registrations through the official Udyam Registration Portal. Udyam registration is free of cost. Business loan documentation requirements vary by lender and applicant profile.

Things to Consider Before Applying for a Business Loan Online

Before applying for a business loan online, you can compare multiple lenders only at Paisabazaar platform or app which help avoiding multiple applications, and improving approval chances. For a smooth and seamless experience, applicants should follow best practices and take into account the following:

• Interest Rate Type

Business loan are usually offered at fixed interest rates. However, a few lenders may offer business loan 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 760 and above may be eligible for best business loan offers. Some lenders also offer business loan 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, prepayment charges, and more. Being aware of these terms helps you plan your loan journey better.

• EMI Affordability

Before you take a business loan, it is pertinent to understand your EMI affordability to avoid missed EMI payments. Use a Paisabazaar 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.

How Long Does It Take to Get a Business Loan?

The time taken for business loan approval and disbursement varies across lenders, depending on various factors. Usually, the process flows in the direction below: 

• Application Submission: You submit the application by providing the required details and documents.
• Eligibility Check: Your eligibility for the loan is checked by the lender.
• Document Verification: Your uploaded documents are verified by the lender.
• Approval: Based on the eligibility check and document verification, final approval is given. Approval is usually faster, provided all application details and documents provided are accurate.
• Disbursal: Business loan disbursal depends on the lender's internal process and can get processed in as little as 72 hours as well.

Compare business loan interest rates provided by banks and NBFCs. Lender offers business loan at competitive interest rates on Paisabazaar. Multiple factors influence the business loan interest rate, including the credit profile of the borrower, income, business stability, existing debt obligations, and more. Keeping these in check can help borrowers attract lower interest rates.

Business Loan Interest Rates by Banks and NBFCs

*Rates updated as of 21st October 2026

What Affects Business Loan Interest Rate?

Multiple factors influence business loan interest rates. A few of these factors are discussed below:

• Credit Score: A credit score helps lenders understand the creditworthiness of a borrower. A higher credit score signals low risk and may attract lower interest rates.
• Business Turnover: Lenders usually set a limit for business turnover. A higher business turnover signifies higher repayment capacity and lower risk of default. 
• Business Vintage: An established business operating for a longer time is considered stable and can get lower interest rates from lenders.
• Profitability: Profitability strengthens the repayment capacity of a borrower, boosting their chances of getting lower interest rates.
• Existing Loans: Higher existing debt can strain finances and increase the risk of missed repayments. This increases the risk factor for lenders, making them charge more for a loan.
• Loan Type: Secured loans involve lower risk and attract lower interest rates. On the contrary, unsecured loans involve higher risk and may come with higher interest rates.

Lenders usually set their business loan eligibility criteria based on the following factors :

The amount of business loan that you can qualify for depends on multiple factors, as discussed below: 

• Turnover: Higher turnover increases loan amount eligibility
• Profit/cash flow: A strong profit and cash flow statement makes borrowers eligible for a higher loan amount.
• Credit score: A high credit score reduces risk for lenders, increasing the chances of higher loan amount approval.
• Business vintage: Longer-running businesses are considered stable and less risky by lenders, making them eligible for a higher loan amount.
• Existing debt: A debt-to-income ratio of 50-55% is preferred by lenders. A higher ratio decreases loan amount eligibility
• Collateral: Loans backed by collateral usually qualify for a higher loan amount.

Note: A business with stronger revenue, stable cash flow and a good credit profile may qualify for a higher amount than a similar business with weaker financials.

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.

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

The exact documents required may vary depending on the applicant's business structure, loan type and lender.  Applicants usually need to provide the following documents to get their business loan applications processed.

Borrowers of business loan have to pay processing fees, prepayment charges, commitment charges, inspection charges, account service charges, penal interest and documentation charges, etc., as and when required. The fees and charges levied on business loan vary widely across lenders. Below is an overall range of a few charges levied by lenders on business loans in India.

To calculate business loan EMIs, borrowers can visit Paisabazaar Business Loan EMI Calculator page and follow the steps mentioned below:

• Enter loan amount
• Enter loan tenure
• Enter interest rate

The calculator will show instant results. Borrowers should try different combinations of loan amount, interest rate and loan tenure to understand which scenarios work best for them and apply for a business loan online accordingly.

Business Loan EMI Formula : EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1], where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of months.

Business Loan EMI Calculator Examples at 13% p.a.

A longer tenure lowers your EMI but raises total interest. A shorter tenure does the opposite. Read factors affecting business loan EMI for more.

Small businesses can avail business loan 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:

Scheme-specific government references :

• • Department of Financial Services – PMMY
  • Ministry of MSME – schemes and services
  • Udyam Registration official website
  • CGTMSE official website

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.

Startup Business Loan

• Startups, new businesses, or enterprises with less vintage can access collateral-free loans
• Government schemes such as CGTMSE, SIDBI, etc., help these organisations get the loan
• Lenders assess the business plan, promoter's profile and cash flow potential while approving the loan application. A limited loan amount is approved by lenders

Business Loan for Women Entrepreneurs

• Offered to businesses promoted primarily by women entrepreneurs
• Special business loan offers for women at concessional rates and relaxed eligibility
• Loans offered under Government-backed schemes such as PMMY, Stand-Up India scheme, etc., as well

Manufacturing Business Loan

• Manufacturers typically require larger loan amounts for the smooth functioning of their businesses
• Loans availed can be used for purchasing machinery, raw materials, and meeting production cycle requirements

Business Loan for Traders/Retailers

• Traders and retailers usually seek short-tenure loans and relatively lower amounts
• These loans can be used for inventory purchase, daily cash-flow management, POS requirements, etc.

Business Loan for Doctors & Professionals

• Doctors, CAs, architects, and other professionals can avail these loans
• These loans can be used for setting up clinics, expanding offices, purchasing equipment, etc.

MSME Business Loan

• Offered to small businesses or MSMEs to keep their operations running smoothly and expand their business
• MSME Loans can be secured and unsecured. Covers multiple government schemes, including PMMY, PMEGP, CGTMSE, etc.

Business Loan for Self-Employed Professionals

• Usually unsecured loans offered to self-employed entrepreneurs
• Covers working-capital loans, term loans, etc.

• Improve credit score: Maintain a good credit score/rating. Borrowers with a credit score of 760 and above have higher chances of getting the best loan offers at relatively relaxed loan terms. 
• Maintain stable cash flows: Maintain strong and consistent cash flows to demonstrate stability. This develops confidence in lenders regarding your repayment capacity.
• Choose the correct loan amount: Borrow an amount aligned with your business needs and repayment ability to avoid financial strain.
• Apply via a multi-lender platform: Compare business loan offers across multiple lenders on Paisabazaar to find the most suitable rates and terms.
• Seek expert assistance: Consult loan experts to understand eligibility, documentation, and the process of loan application.

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.

Footnote: Loan amount, interest rate and tenure are decided by the lending partner and are subject to eligibility and credit assessment. Paisabazaar is a loan aggregator or marketplace and is authorised to provide services on behalf of its partners.

Hindi में पढ़ें : बिज़नेस लोन

Last Updated : 26 October 2026