RBL Bank Business Loan

RBL Bank Business Loan Highlights 2024
Interest Rate	Small business loan: 20% to 26% p.a. Business loan: 17.50% to 21% p.a. Small ticket unsecured business loans: 18% to 19.60% p.a. MSME Loans: 17.50% to 19.60% p.a. Small ticket secured business loans: 17.50% to 18.50% p.a.
Loan Amount	Business loan: Up to Rs 35 lakh Secured small business loan: Up to Rs 20 lakh Unsecured small business loan: Up to Rs 10 lakh
Loan Tenure	Business loan: Up to 3 years Secured small business loan: Up to 7 years Unsecured small business loan: Up to 5 years

Note: Interest rates as of 15th April 2024

RBL Bank Business Loan Interest Rates

RBL Bank Business Loan interest rates range between 17.50% to 26% p.a. The interest rates provided for different business loan schemes of RBL Bank are as follows:

Particulars	Interest Rates (p.a.)
Business loans	Up to Rs 25 lakh: 20.50% Above Rs 25 lakh and up to Rs 35 lakh: 19.50% Above Rs 35 lakh: 18.50% Business loan MCA (Merchant Cash Advance) above 15 lakh: 21% Business loans for doctors: 17.50%
Small business loans	For loan amount less than Rs 5 lakh: 26% For loan amount of Rs 5 lakh and above: 22.50% For MCA of up to Rs 5 lakh: 25% For MCA above Rs 5 lakh and below Rs 15 lakh: 21.50% Business instalment loans for doctors: 20%
Small ticket unsecured business loans	For women borrowers: Up to Rs 2.5 lakh: 18.50% Above Rs 2.5 lakh and up to Rs 5 lakh: 18% For other borrowers: Up to Rs 2.5 lakh: 19.60% Above Rs 2.5 lakh and up to Rs 5 lakh: 19%
MSME loans	For women borrowers: Up to Rs 2.5 lakh: 18.50% Above Rs 2.5 lakh and up to Rs 5 lakh: 18% Above Rs 5 lakh and up to Rs 10 lakh: 17.50% For other borrowers: Up to Rs 2.5 lakh: 19.60% Above Rs 2.5 lakh and up to Rs 5 lakh: 19% Above Rs 5 lakh and up to Rs 10 lakh: 18.50%
Small ticket secured business loans – liquid collateral and property	For women borrowers: Rs 5 lakh to Rs 10 lakh: 17.50% Above Rs 10 lakh and up to Rs 15 lakh: 17.50% Above Rs 15 lakh and up to Rs 20 lakh: 17.50% Above Rs 20 lakh and up to Rs 25 lakh: 17.50% Above Rs 25 lakh and up to Rs 35 lakh (Top up): 17.50% Above Rs 25 lakh and up to Rs 50 lakh (Micro LAP): 17.50% For other borrowers: Rs 5 lakh to Rs 10 lakh: 18.50% Above Rs 10 lakh and up to Rs 15 lakh: 18.50% Above Rs 15 lakh and up to Rs 20 lakh: 18.50% Above Rs 20 lakh and up to Rs 25 lakh: 18.50% Above Rs 25 lakh and up to Rs 35 lakh (Top up): 18.50% Above Rs 25 lakh and up to Rs 50 lakh (Micro LAP): 18.50%

Fees and Charges for Business Loans from RBL Bank

The fees and charges for availing RBL Bank Business Loans are mentioned below:

Business Loans and Small Business Loans

Particulars	Concessions
Processing fees	2.5% of Loan amount for Business Loans (loan amount greater than Rs 25 lakh) 3% of Loan amount for small business Loans (Rs 5 lakh to Rs 25 lakh) (No processing fee applicable for small business loans below Rs 5 lakh)
Charges for late payment of EMI	2% additional interest per month on overdue EMI amount
Issue of duplicate interest & principal certificate	Rs 250 per instance
Cheque swapping charges	Rs 250 per instance
Bounce cheque charges	Rs 250 per instance
NACH bounce charges for EDI (Equated Daily instalment) products	Rs 50 per instance
Charges for CIBIL report	Rs 50 per instance
Foreclosure charges (EMI based product)	No foreclosure permitted before repayment of 6 EMIs On payment of 7 to 18 EMIs – 5% of principal outstanding On payment of more than 18 EMIs – 3% of principal outstanding Note: The foreclosure charges are not applicable for facility sanctioned to MSMEs with floating interest rate loans and for fixed interest rate loans with loan amounts of up to Rs 50 lakh
Foreclosure charges (EDI based product)	No prepayment or foreclosure permitted before payment of 180 EDIs On payment of 181 to 550 EDIs – 5% of principal outstanding On payment of 550 EDIs – 3% of principal outstanding Note: The foreclosure charges are not applicable to facility sanctioned to MSMEs with Floating interest rate loans and fixed interest rate loans with loan amounts of up to Rs 50 lakh
Documentation charges	Rs 7,000 for small business loans below Rs 5 lakh

Working Capital Finance

Particulars	Concessions
Processing fees	1.25% of loan amount plus applicable taxes Non-refundable fees of Rs 7,500 plus applicable taxes at login stage
Expiry of limits/ Non-Renewal of limits charges	Additional 2% over current interest rate
Limit excess/ overdrawn charges	Additional 2% over current interest rate
Non-submission of stock statement charges	Additional 2% over current interest rate
Stock inspection charges	Actuals plus applicable taxes
Overdue exceptions charges	Additional 2% over current rate
Commitment charges	2% of the shortfall in utilisation (Minimum quarterly average utilisation is 25% of the limit set per year)
Bounce cheque charges	Rs 250 per instance
Takeover/ Foreclosure/Part Prepayment charges	4% of Balance Outstanding on Term Loan and 4% of Sanction Limit in for Limits (CC/OD) Note: The foreclosure charges are not applicable to facility sanctioned to MSMEs with floating interest rate loans and fixed interest rate loans with loan amounts of up to Rs 50 lakh
Issue of duplicate interest & principal certificate	Rs 250 per instance
Duplicate no due certificate / NOC	Rs 250 per instance
Cheque swapping charges	Rs 250 per instance
Charges for CIBIL report	Rs 50 per instance
Duplicate statement	Rs 250 per instance

Small Ticket Secured and Unsecured Business Loans

Particulars	Concessions
Processing fees	No processing fee for MSME Loans (up to Rs 5 lakh) MSME loans (above Rs 5 lakh and up to Rs 10 lakh): 2% of loan amount Secured loans (Rs 10 lakh and above): 2% of loan amount Small LAP (Above Rs 25 lakh): 2.25% of loan amount
Charges for late payment of EMI	2% additional interest per month on overdue EMI amount
Issue of duplicate interest & principal certificate	Rs 250 per instance
Duplicate no due certificate / NOC	Rs 250 per instance
Cheque swapping charges	Rs 250 per instance
Bounce cheque charges	Rs 250 per instance
Charges for CIBIL report	Rs 50 per instance
Part prepayment charges (only for secured loans)	Up to 15% of the outstanding loan amount in 1 year: Nil Above 15% of the outstanding loan amount in 1 year: 5% of total amount paid for up to 12 months of loan booking 4% of total amount paid after 12 months of loan booking
Foreclosure charges	5% of the principal outstanding amount for up to 12 months of loan booking 4% of the principal outstanding amount  after 12 months of loan booking For women borrowers: 3% of principal outstanding for up to 12 months of loan booking 2% of principal outstanding after 12 months of loan booking Note: The foreclosure charges are not applicable to any facility sanctioned to MSMEs with floating interest rate home loans irrespective of the loan amount and fixed interest rate home loans for up to loan amounts of Rs 50 lakh
Documentation fees (for MSME loans up to Rs 5 lakh)	Rs 7,500
Advance legal & technical fees (initial money deposit for MSME and secured loans only)	Rs 4,000 (for secured and MSME loans above Rs 5 lakh); Rs 1,000 (for MSME loans of up to Rs 5 lakh)

Types of Business Loans provided by RBL Bank

RBL Bank Business Loan

Purpose: This unsecured loan helps business units arrange funds for their working capital requirements and to finance their business expansion needs.

Loan amount: Rs 10 lakh to Rs 35 lakh

Loan tenure: 1 to 3 years

RBL Bank Working Capital Finance

Purpose: RBL Bank provides working capital finance loans to business units, which helps them take care of their day to day expenses as well as monthly commitments like salary, electricity, etc. The bank provides facilities like cash credit, overdraft, export credit, bank guarantee, buyer’s credit and letter of credit under this business loan facility.

RBL Bank Secured Small Business Loan

Purpose: RBL Bank provides secured loans to individuals, proprietors and partnership firms to meet their working capital needs, for purchasing machinery and for repairs/renovation of existing business units. The bank accepts both residential and commercial properties as collateral. The bank undertakes the assessment of the business based on their bank statements, income tax returns (ITR), value added tax (VAT) payments and ‘kaccha pukka’ bills.

Loan amount: Up to Rs 20 lakh

Loan tenure: 1 to 7 years

RBL Bank Unsecured Small Business Loan

Purpose: RBL Bank provides collateral free loans to individuals, proprietors and partnership firms to support their credit requirements.

Loan amount: Up to Rs 10 lakh

Loan tenure: 1 to 5 years

RBL Bank Business Loan Eligibility Criteria

The business loan eligibility criteria set for availing the RBL Bank Business Loans are as follows:

RBL Bank Working Capital Finance

Manufacturing, trading or service businesses can apply for the working capital finance loan provided they fulfil the following criteria:

• It should have minimum track record of 3 years in the same line of business
• It should have a cash profit with positive net worth for the last 2 years

RBL Bank does not provide financing to businesses engaged in:

• Gambling, tobacco, liquor, and narcotics
• Manufacturing and marketing banned drugs
• Polluting industries working without any clearance from pollution control authorities

RBL Bank Business Loan

The eligibility criteria for this business loan variant is mentioned below:

• Self-employed individuals & professionals, sole proprietorships, partnership firms and private limited companies (including closely-held public limited companies) with a profitable business for past 3 years are eligible
• Age: 27 years (at the time of loan application) to 65 years (at loan maturity)
• At least 5 years of experience required in the same line of business with minimum 3 years of business establishment & operation in the same city. Self-employed professionals need a minimum of 4 years of post-qualification experience
• The minimum business turnover required for this unsecured business loan is Rs 1 crore. The loan applicant’s gross receipts for the professional or service Sector should at least be Rs 60 lakh
• The ownership of the residence/office should be in the individual applicant’s name or jointly with family members or the applicant should reside in the residence owned by an immediate family member.

RBL Bank Secured Small Business Loan

The eligibility criteria for availing RBL Bank Secured Small Business Loans are as follows:

• Individuals, proprietors and proprietorship firms are eligible to avail this business loan
• Age: 25 years (at the time of application) to 65 years (at loan maturity)
• Minimum 3 years at the current residence & place of business
• Minimum experience of 3 years in the current business
• Property ownership: Self, blood relative or co-borrower
• The property’s age should be less than 50 years and it should be approved either by the development authority (for urban properties) or by the gram panchayat (for rural properties)

RBL Bank Unsecured Small Business Loan

The eligibility criteria for availing RBL Bank Unsecured Small Business Loans are as follows:

• Individuals, proprietors and proprietorship firms are eligible to avail this business loan
• Age: 25 years (at the time of application) to 65 years (at loan maturity)
• Minimum 3 years at the current residence & place of business
• Minimum experience of 3 years in the current business
• Customers availing loans above Rs 3 lakh should have track record of minimum credit history of 6 months

Documents required for RBL Bank Business Loan

The documents required for availing different types of RBL Bank business loan schemes are mentioned below:

RBL Bank Business Loan

• PAN Card – For individual, partnership firm or company
• Identity proof (any one): Voter ID, Driving License, Passport, Aadhar Card, etc.
• Address proof (any one): Voter ID, Passport, telephone/electricity bill, registered lease deed or sale agreement, bank statement, Driving License etc.
• Ownership proof of residence/office in the name of the loan applicant or jointly with family members
• Proof of business continuity: Any one document dated 5 years old (bank statement, sales tax challans, Income Tax Returns (ITR), Shops & Establishment certificate, Certificate of Incorporation or Partnership Deed)
• Letter certifying the end use of the business loan funds on business letterhead
• Passport size photographs of all applicants and co-applicants

For self-employed individuals/professionals and sole proprietorships

• Latest audited ITR and financials of last 2 years (Profit & Loss A/c., Balance Sheet and computation of income along with all schedules)
• Last 6 months bank statements from the borrower’s main account/s and last 3 months bank statements of all other bank accounts mentioned in the Balance Sheet
• Professional certificate of qualification and degree certificate for doctors, architects, Chartered Accountants etc. (for self-employed professionals only)

For partnership firms/private limited companies

• Latest audited ITR and financials of last 2 years (Profit & Loss A/c., Balance Sheet, computation of income along with all schedules.)
• Bank statements from the main account/s for last 6 months and 3 months of all other bank accounts mentioned in the Balance Sheet
• Partnership authority letter and partnership deed for partnership firms
• Memorandum of Association (MOA), Articles of Association (AOA), Certificate of Incorporation (COI) and Board Resolution from the company
• Latest shareholding patterns for private/public ltd. companies

RBL Bank Working Capital Finance

• KYC of business loan applicant with self-attestation i.e. PAN copy, business licence, address proof of communication/registered address etc.
• Financial documents like last 2 year audited financial statements along with ITR, tax audit report and schedules & notes accounts
• Interim performance supported with a copy of VAT/service tax returns etc.
• Last 12 months bank statements along with existing bank’s sanction letter, if applicable
• Security related documents
• Any other documents as deemed fit or required by the bank

For RBL Bank Secured/Unsecured Small Business Loan

• PAN Card (for individual or partnership firm)
• Identity proof (any one): Passport, Voter ID, Driving Licence, etc.
• Address proof (any one): Voter ID, Driving License, passport, telephone/electricity bill, bank statement, registered lease deed or sale agreement, etc.
• Business continuity proof: Any one document dated 3 years old (bank statement, sales tax challans, ITR, Shop & Establishment certificate, partnership deed, etc.)
• Income proof:
  • ITR with financials for at least 1 year filed minimum 4 months prior to application date
  • VAT returns
  • Last 6 months bank credits validated through the original statement
  • Kachha bills, purchase bills, purchase/sales registers
• Complete collateral documents for secured loans including Encumbrance Certificate (EC) wherever applicable (for secured business loans)