In the fast-paced life of Mumbai, there are many budding entrepreneurs, constantly battling with the market force to establish something of their own. For rapidly growing businesses, flexible loan schemes can be a boon, which is why banks now offer a diversified range of loan schemes. There are number of financial institutions, including banks and NBFCs that offer business loans at competitive interest rates.
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 |
FlexiLoans | 17% onwards |
Axis Bank | 17% onwards |
Fullerton India | 17% onwards |
ZipLoan | 18% 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 |
Eligibility Criteria for Business Loan in Mumbai
The following entities can avail business loans in Mumbai:
- Individuals
- Self-employed Professionals
- SMEs, MSMEs
- Artisans, Traders, Manufacturers, Shopkeepers, Small Vendors & Retailers
- Private and public limited companies, Sole Proprietors, Private Limited Companies and Partnership Firms engaged only in the Manufacturing, Trading or Services sectors
Basic eligibility criteria to meet before applying for a business loan are—
- Minimum age limit of the applicant should be at least 21 years and maximum up to 65 years at the time of loan maturity
- Minimum Annual Turnover and profit depends on lender’s requirements
- Current Business should have minimum 2-year vintage
- Business should be in profit for last 1 year
- Applicants with no previous defaults with any financial institution
- Indian citizen with no criminal record

Apply for Business Loan @ 11.90% onwards per annum Apply Now
Calculate your Monthly EMI on – How is business loan EMI calculated?
Documents Required for Loan Application
o sanction the applied Loan, the lender needs some documents to verify the authenticity and credibility of the loan seeker. Thereby, some required documents are—
- Filled application form with 2 passport-sized Photographs
- Self-written business plan
- Identity Proof (Passport/Voter’s ID/Driving License/PAN Card/Aadhar card)
- Address Proof (Latest Utility Bill/Ration Card/passport)
- Income proof: Last 1 year ITR, Last 2 years’ P&L statement and Last 6 months’ bank statement
- Business address and vintage proofs
- Current year performance and projected turnover on letterhead of the entity
- Sole Proprietorship Declaration/Certified Copy of Partnership Deed/Certified Copy of MoA, AoA
- Company establishment certificate
- Any other document required by the lender
Types of Business Loan
Business loan is both secured and unsecured loan offered at fixed and floating interest rates by the facilitated financial corporation, which gives you access to the needed credits that can be paid back over an agreed time period.
The various business loans that you can avail as a business in Mumbai include:
- Working Capital Loan
- Bill or invoice discounting
- Letter of Credit
- Term Loan (Long-term and Short-term)
- Mudra Loan
- Equipment Finance
- Loan for Machinery or goods
- Loan against Securities
- Merchant Cash Advance
- POS loans
- Machinery Loan
- Cash Credit Facility and Overdraft Facility
- Bank Guarantee
Apply for business loans in other cities of India
Business Loan in Gurgaon | Business Loan in Chandigarh |
Business Loan in Bengaluru | Business Loan in Kolkata |
Business Loan in Chennai | Business Loan in Pune |
Business Loan in Delhi | Business Loan in Hyderabad |
FAQs
Ques.1: How is my loan eligibility counted?
Ans: The CIBIL/credit scores of the entity and the last 1 year’s financial report and your ability to repay the loan on and within given time will count as your eligibility to get business loan.
Also Check: eligibility criteria on business financing in India
Ques.2: What is the Minimum and Maximum loan limit offered for business loan?
Ans: There is no minimum loan amount limit to borrow, however most of the collateral-free loans are offered for the maximum loan amount of up to Rs. 1 crore. The loan amount sanctioning depends on your business size and eligibility and upon the terms and condition of respective bank, NBFC or financial corporation.
Ques.3: How long does it take to disburse the business loan?
Ans: It varies from bank to bank, depending on the procedure to verify the eligibility criteria. But mostly your business loan will be disbursed within 3-7 working days.
Ques.4: What is the rate of interest and processing fee on business loan?
Ans: The interest rates may vary from one lender to another and will depend on the various factors related to the borrower. The processing fees would be communicated during the application procedure by the respective authority.