Business Loan in Chandigarh

Chandigarh is one of the leading outsourcing and IT services destinations across the nation. Like other major cities, Chandigarh also specializes in providing business loans at competitive interest rates with flexible repayment options.

Compare Business Loan Interest Rates from Top Banks/NBFCs

Bank/NBFCs	Interest Rate
Axis Bank	10.75% p.a. onwards
Flexiloans	1% per month onwards
HDB Financial Services Ltd.	8% - 26% p.a.
HDFC Bank	10.75% - 25% p.a.
IDFC First Bank	10.50% p.a. onwards
Indifi	1.50% per month onwards
Kotak Mahindra Bank	16% - 26% p.a.
Lendingkart	12% - 27% p.a.
Mcapital	2% per month onwards
NeoGrowth Finance	15% - 40% p.a.
Tata Capital	12% p.a. onwards
UGRO Capital	9% - 36% p.a.
Bajaj Finserv	10% to 26%

Business loans offered by financial institutions can be availed by the following entities of Chandigarh:

Individuals, startups, MSMEs, large enterprises, traders, retailers, manufacturers, self-employed professionals, sole proprietorship, partnership firms, private limited and public limited firms, etc.

Eligibility Criteria

• Minimum age limit of the applicant should be at least 21 years and maximum age should be 65 years at time of loan maturity
• Indian citizen with no criminal record
• Good Credit Score

Business Loans are categorized in two categories by financial institutions, such as secured business loan and unsecured business loan.

Secured Business Loan: In this type of category customers need to submit collateral to avail loan. However, the interest rate is low as compared to other types of business loans and even the loan amount offered is high.

Unsecured Business Loan: Collateral or security is not required to be submitted to the lender. Interest rate is comparatively on higher side and loan amount depends on the business requirements.

Purpose of Business Loan

Business Loans can be used for various purposes, such as business expansion, meeting working capital requirements, purchase of machinery and equipment, buying raw materials, managing cash flow, paying office rent and salaries, hiring new staff, purchase of inventory or stock, debt consolidation, etc.

Types of Business Loans offered in Chandigarh

1. Term Loan
2. Working Capital Loan
3. Overdraft
4. Letter of Credit
5. Bill or Invoice Discounting
6. Demand Loan
7. Small Business Finance
8. Micro Loan
9. Merchant Cash Advance
10. Equipment Finance
11. Construction Machinery Loan
12. Commercial Real Estate Loan
13. Business Credit Card and many more
14. Mudra Loan

Business loans can be offered to any individual who is running a legal business with good turnover. Generally, most of the private and public sector banks and NBFCs have different criteria and terms and conditions to validate the authenticity of a business. However, these banks validate the authenticity of a business on below-mentioned parameters:

• Nature and Type of business
• Annual Turnover
• Profit made by business
• Credit Score of business
• Past financial track record

The interest rate offered by banks and NBFCs depends on various factors, such as loan amount, applicant’s profile, business requirements, loan tenure, CIBIL score, creditworthiness of applicant and repayment capability.

People of Chandigarh who plan to take any type of business loan at lowest interest rates can visit paisabazaar.com to check and compare business loan options available from various financial institutions.