Nowadays, there is a rise in new business start-ups and emergence of small enterprises in large numbers in almost every industry sector. So, taking a business loan is the easiest and more reliable option for managing their daily operational expenses and expanding businesses to greater heights. Before opting of any loan, you must have to look at the various types of business loans available for both young, as well as established entrepreneurs.
Compare Business Loan Interest Rates from Top Banks/NBFCs – March 2021
|Banks / NBFCs||Interest Rate|
|SBI||8.30% onwards (SME Loan)|
|Canara Bank||9.60% onwards|
|Corporation Bank||10.3% onwards|
|HDFC Bank||15% onwards|
|Kotak Mahindra Bank||16% onwards|
|ICICI Bank||16% onwards|
|IDFC First Bank||16% onwards|
|IIFL Finance||16% onwards|
|Lendingkart Finance||17% onwards|
|Axis Bank||17% onwards|
|Fullerton India||17% onwards|
|Hero Fincorp||18% onwards|
|Bajaj Finserv||18% onwards|
|RBL Bank||19% onwards|
|Indifi Finance||22% onwards|
|NeoGrowth Finance||24% onwards|
|Bank of Baroda||Based on your Business’s Profile|
|PNB Business Loan||Based on your Business’s Profile|
Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank, NBFC and RBI. GST and service tax shall be levied extra on the mentioned fee & charges.
Features of Business Loan
Term loan basically means that a business loan that is provided to you should be repaid within the specific period of time. Such loans have a fixed repayment schedule that can be monthly or quarterly depending upon the plan you chose. You have to repay the entire payment with the specific interest amount to the bank. So you can either opt for short-term plan or you can go for long-term plan, if you are opting for having business in real estate, building or production machinery.
Collateral Free loan
Collateral free loan or unsecured business loans are particularly made for Micro and Small Enterprises in India. It was launched by Government of India for Micro and Small Enterprises for making them loan available without providing any collateral. Both the existing and new enterprises are eligible for this loan. Collateral free loan can be availed for various purposes like covering daily operational costs and cash flows, Purchase of machinery and inventory and assistance in business expansion.
Equipment loan is a secured loan and it is pledged as collateral and the tenure is decided upon the nature of the plan and repayment capacity of the applicant. It is decided specifically for the purpose of purchasing equipment such as machineries, generators, motors, plant products, etc.
Read Also: What is the Mudra Shishu loan?
Eligibility of Business Loan in Bengaluru
If you are thinking to take a business loan in Bangalore then you should also look through the eligibility criteria of the banks and NBFCs too. You have to fall under the eligibility criteria of lending institutions then only they will provide you with business loan.
The criteria for getting loan are as follows:
- Self-employed individual
- Limited or Private Limited Companies
- Manufacture or service providers
- The age of the person should be 21-65 years
- The person must have an experience of business for 3 years
- The enterprises’ minimum turnover should be Rs. 90,000 for three months
- The person must submit the last 3 years of their ITR statements
- The person can increase the probability of getting a loan with acceptable tenure and interest rate, if the person has a business partner and can be a co-applicant in your business loan application
Calculate Business loan EMI on – Business Loan EMI Calculator
The following documents will require when applicant is taking business loan
- Bank account statements
- Last 3 years’ Income Tax Returns
- Business proof
- Residence proof
- Identity proofs such as PAN card, Aadhaar card, Voter ID card
- Recent photographs
- KYC Documents
- Practice Certificate
- Proof of ownership of the possessions which are used for business purposes
Apply for business loans in other cities of India
|Business Loan in Gurgaon||Business Loan in Chandigarh|
|Business Loan in Mumbai||Business Loan in Kolkata|
|Business Loan in Chennai||Business Loan in Pune|
|Business Loan in Delhi||Business Loan in Hyderabad|
Ques. Are there any small business loans for women?
Ans. Yes, there are business loans for women who want to run small businesses. You can check Cent Kalyani from Central Bank of India, Stree Shakti Package from State Bank of India, Shringaar and Annapurna from Bhartiya Mahila Bank, Synd Mahila Shakthi from Syndicate Bank and Shakti Scheme from Dena Bank
Ques. Is there any loan for new entities or Startups?
Ans. Yes there are loans provided for new entities or Startups. You can check MUDRA loan under PMMY and Standup India Scheme by Government of India.
Ques. Why should I take a business loan?
Ans. Business loan is helpful whether you are at initial stage or in the growth phase, it will support you and balance you so that you can avoid any type of break down.