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Business loans are unsecured loans that can be used for various purposes like purchase of machinery or equipment, for business expansion purposes, to buy raw materials/stock, paying-off salaries, debt consolidation, etc. Unsecured loans mean that customers are not required to submit any collateral for their business loan. Kolkata is one of the major metropolitan cities of India in which, like other metro cities, lending products are offered at attractive interest rates with flexible repayment options.
The interest rate and loan amount offered by banks and NBFCs depends on the applicant’s profile and business requirements. Below mentioned is a tabular presentation of banks and NBFCs offering business loans:
Compare Business Loan Interest Rates from Top Banks/NBFCs – Jan 2021
| Banks / NBFCs | Interest Rate |
| SBI | 8.30% onwards (SME Loan) |
| Canara Bank | 9.60% onwards |
| Corporation Bank | 10.3% onwards |
| Bajaj Finserv | 15% onwards |
| Lendingkart Finance | 15% onwards |
| HDFC Bank | 15% onwards |
| FlexiLoans | 15% onwards |
| Kotak Mahindra Bank | 16% onwards |
| IDFC First Bank | 16% onwards |
| Axis Bank | 16% onwards |
| ICICI Bank | 16% onwards |
| ZipLoan | 16% onwards |
| IIFL Finance | 16% onwards |
| Fullerton India | 17% onwards |
| Hero Fincorp | 18% onwards |
| RBL Bank | 19% onwards |
| NeoGrowth Finance | 21% onwards |
| Indifi Finance | 22% onwards |
| Bank of Baroda Business Loan | 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.
The following business entities can apply for a business loan in Kolkata:
Self-employed, sole proprietorships, partnerships, limited liability partnerships, private and public limited firms and companies engaged in the business related to manufacturing, trading or services sectors.
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
- Minimum turnover should be as per lender’s requirements
- Business tenure should be at least 2 years
- Minimum credit/CIBIL score should be 600+
- Indian citizen with no criminal record
Types of Business Loans offered in Kolkata
- Term Loan
- Working Capital Loan
- MSME Loan
- Mudra Loan
- Demand Loan
- Bill / Invoice Discounting
- Merchant Cash Advance
- Letter of Credit
- Machinery Loan
- Small Business Loan
- Micro Lending
- Fleet Finance
- Commercial Vehicle Loan
- Construction / Farm Equipment Finance, etc.
Documents Required
- Passport sized photographs
- Business plan
- Duly filled application form
- KYC documents (Identity, Age, Address Proofs)
- Business address proof
- Bank account statements
- Last 2 years’ Income Tax Returns
- Proof of ownership of the possessions, used for business purposes
Additional Documents Required
- Balance Sheet
- Last 2 years’ Profit and Loss statement
- Latest Income Tax Returns (ITR)
- Proof of continuation that includes; ITR, sales tax certificate, trade license, establishment certificate
- Sole Proprietor Declaration
- Certified Copy of Partnership Deed
- Certified true copy of Memorandum, and Articles of Association (MoA) & (AoA)
FAQs
Q. What is the loan amount that I can get if I avail business loan?
Ans. The minimum loan amount that can be availed is Rs. 10,000 and maximum can go up to Rs. 40 lakh. The amount mentioned is in case of secured loan where you are not required to submit any collateral.
Q. What is the repayment period of a business loan?
Ans. The repayment period of a business loan ranges between 12 months and 60 months.
Q. What is the minimum credit score required to apply for business loans from private sector banks?
Ans. The minimum credit score required to apply for a business loan should be 650 or more.
Q. If I want to take a loan amount of Rs. 50,000 to start a new business, which bank should I opt?
Ans. If your business requirement is Rs. 50,000 and you want to start a new business, you can contact banks offering Mudra loan under Pradhan Mantri Mudra Yojana (PMMY). Under Mudra loan, you can opt for a Shishu scheme that offers loans up to Rs. 50,000 to start a new business.
Q. Do I need to pay collateral, if I avail business loan?
Ans. No, business loans being an unsecured loan, you are not required to pay any collateral to the bank or NBFC.
Q. Do I need to pay extra if I want to cancel my business loan?
Ans. Yes, you will have to pay loan cancellation fees, if you want to cancel your loan. However, the exact loan cancellation fee shall be decided by the respective lender or financial institution.
Q. Is it possible to shift my existing business loan from one bank to another?
Ans. Yes, it is surely possible to change your existing lender but will have to pay some extra fees to the existing lender for changing to a new lender. This fee is decided by the bank and shall be conveyed to you at the time of placing of request.
