In the fast-paced life of Mumbai, there are many budding entrepreneurs, constantly battling with the market forces 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 a number of financial institutions, including banks, NBFCs, Micro Finance Institutions (MFIs), Small Finance Banks (SFBs) that offer business loans at competitive interest rates.
Compare Business Loan Interest Rates from Top Banks/NBFCs – May 2022
Bank/NBFCs | Interest Rate | |
IIFL Finance | 11.75% – 25.75% p.a. | Apply Now |
HDFC Bank | 11.90% – 21.35% p.a. | Apply Now |
FlexiLoans | 1% per month onwards | Apply Now |
ZipLoan | 1% – 1.5% per month (Flat ROI) | Apply Now |
Axis Bank | 14.25% – 18.50% p.a. | Apply Now |
IDFC First Bank | 14.50% onwards | Apply Now |
Kotak Mahindra Bank | 16% – 19.99% | Apply Now |
Fullerton Finance | 17% – 21% | Apply Now |
Bajaj Finserv | 17% p.a. onwards | Apply Now |
RBL Bank | 17.50% – 25% p.a. | Apply Now |
ICICI Bank | 18% onwards | Apply Now |
Indifi Finance | 1.5% per month onwards | Apply Now |
Lendingkart Finance | 1.5% – 2% per month | Apply Now |
Tata Capital Finance | 19% p.a. onwards | Apply Now |
NeoGrowth Finance | 19% – 24% p.a. | Apply Now |
Hero FinCorp | Up to 26% p.a. | Apply Now |
Note: The mentioned interest rates are subject to change and depend on the sole discretion of the bank, NBFC, SFB, MFI and RBI. Interest Rates are updated as on Dec 2021.

Apply for Business Loan @ 16% p.a. onwards Apply Now
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 18 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 experience should be minimum of 2 years
- Business should be operations and in profit for last 1 year
- Applicants with no previous defaults with any financial institution
- Indian citizen with no criminal record
Also Know: How the EMI is calculated in a business loan from bank?

Apply for Business Loan @ 16% p.a. onwards Apply Now
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 passport-sized Photographs
- 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
- 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 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.