Running a business and thinking about getting a loan? June 2026 could be a smart time to explore your options.
The business loan space in India is changing fast. Thanks to new RBI guidelines and rapid growth in digital lending, getting a loan is now easier and in some cases, cheaper especially for small businesses and startups. Banks and NBFCs are also launching new products tailored for MSMEs, helping more businesses get access to the funds they need.
We’ll cover the latest trends, interest rates, eligibility tips and how platforms are helping businesses find the right loan without the usual delays or paperwork.
Business Loan Details 2026
Let us look at the overview of the business loan before we get into other core details:
|
Feature |
Details |
|
Interest Rate | Starts from 8.25% p.a. (banks) and 12% p.a. (NBFCs). |
|
Loan Amount | From ₹50,000 to ₹100 Cr, based on your business size. |
|
Tenure | Usually between 1 to 7 years. |
|
Processing Fees | Ranges from 0% to 3% of the loan amount. Including the tax. |
|
Documents Needed | Basic ID/address proof, business registration and bank statements, ITRs. |
Business Loan Interest Rate By Bank June 2026
Here’s the table with the business loan interest rates and processing fees for the requested banks for June 2026.
|
Bank |
Interest Rate (p.a.) |
Processing Fee |
| Axis Bank | 11% to 25% | Up to 2% + GST |
| Bandhan Bank | 13.00% to 21.00% | Up to 2% + taxes |
| Bank of Baroda | Linked to MCLR (8.9%) | Varies by scheme |
| Bank of India | Linked to MCLR (8.10%) or RBLR (8.35%) | Varies by scheme |
| Bank of Maharashtra | 8.5% to 17% | Varies by scheme |
| Canara Bank | 9.20% onwards (for MSME loans) | Varies by scheme |
| Central Bank of India | 8.25% onwards (for MSME loans) | Varies by scheme |
| Federal Bank | 11.35% to 17.95% | 1.5%–2.5% (for personal loans) |
| HDFC Bank | 10.75% to 22.50% | Up to 2% (NIL up to ₹5L for MSEs) |
| HSBC Bank | 8.90% (Repo linked) | 1% |
| ICICI Bank | 13.25% to 19.50% | Up to 2% + taxes |
| IDBI Bank | 10.95% (up to ₹2 Cr); 9.95% (above ₹2 Cr) | 1% (Free above ₹5L for MSMEs) |
| IDFC FIRST Bank | 11.18% to 15% | Up to 2% (personal loans) |
| Indian Bank | 8.80% onwards (for MSME loans) | Varies by scheme |
| Indian Overseas Bank (IOB) | RLLR 8.35% or MCLR 9.10% | Varies by scheme |
| IndusInd Bank | 11.25% to 26% (for personal loans) | Up to 2.5% + GST |
| Karnataka Bank | 9.91% to 16.55% / 10.96% (Business Quick Loan) | Up to 0.50% (above ₹5L) |
| Karur Vysya Bank | MCLR + 0.35–4.30% or Repo + 2.60–7.70% | Varies by scheme |
| Punjab National Bank (PNB) | Starts at 9.60% (for MSME loans) | Varies by scheme |
| State Bank of India (SBI) | 11.20% to 16.30% | Varies by scheme |
| UCO Bank | 9.10% onwards (for MSME loans) | Varies by scheme |
| Union Bank of India | 10.95% onwards (for MSME loans) | Varies by scheme |
| Yes Bank | 11.25% to 21% (for personal loans) | Up to 2.5% of loan proceeds |
Note: Interest rates are indicative and subject to change based on the applicant’s credit profile, business type, loan amount, tenure and prevailing market conditions. The lowest rates may apply to specific schemes or highly creditworthy borrowers.
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Business Loan Interest Rate by NBFCs June 2026
The following table compiles the available information on business loan (or personal loan where business loan data is unavailable) interest rates and processing fees for the specified NBFCs.
|
NBFC |
Interest Rate (p.a.) |
Processing Fee |
|
Paysense | 16% to 36% APR | Up to 3% + GST |
|
Cashe | Starting at 33.48% (2.79% per month) | ₹3,245 for ₹50,000 loan (incl. GST) |
| Fibe | Starting from 16% | 2% – 4.5% + GST |
| Mpokket | 24% to 48% (2% to 4% per month) | ₹15 to ₹200 + 18% GST |
| Prefr | N/A | N/A |
| NIRA | 24% to 36% APR | ₹350 + GST or 2% – 7% + GST |
| Money Tap (Freo) | 13% to 36% | 2% – 3.5% + GST |
| Bajaj Finance | 10% to 26% | Up to 4.72% |
| Tata Capital | 12% onwards (Professionals), 14% (Non-Prof.) | Up to 3% + taxes |
| Money View | Starting from 16% (1.33% per month) | Starting from 2% |
| Upwards | 16% to 36% | 2% – 4% |
| Zype | 18% to 36% | 2% – 6% |
| LoanTap | 19.99% to 26% | 2% – 2.99% + GST |
| Pocketly | 24% to 36% (2% to 3% per month) | 0% – 7.5% + GST |
| Loanbaba | 10.50% onwards | 1% – 3% |
| Finnable | 18.99% to 27.00% | Up to 4% |
| Aditya Birla Finance | 21% to 29% ROI | 2.75% – 3% |
| MyMoneyMantra | 10.5% to 30% APR | ₹500 to 2.5% |
| IIFL Finance | 12.75% to 36% | Up to 9% |
Note: Interest rates are indicative and subject to change based on the applicant’s credit profile, business type, loan amount, tenure and prevailing market conditions.
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Business Loan Eligibility Criteria
Getting a business loan starts with meeting the lender’s basic eligibility requirements. While criteria may vary by lender and loan type, here are the key checkpoints most financial institutions consider:
|
Criteria |
Requirement |
| Age | 21 to 65 years (at application or loan maturity) |
| Business Type | Legally registered in India (proprietorship, partnership, Pvt Ltd, etc.) |
| Business Vintage | 1–3 years (1 year for some NBFCs; 2+ years preferred by banks) |
| Annual Turnover | ₹1.5 Lakhs to ₹1 Crore+ (varies by lender and loan size) |
| Profitability | Profitable for at least 1–2 years (supported by ITRs/financials) |
| Income Source | Primarily from business or valid investments |
| Repayment Capacity | Evaluated through financials (ITRs, income statements, etc.) |
| Credit Score | 700+ ideal; 650+ possible with conditions or collateral |
| Track Record | No defaults; property ownership improves chances |
Lender-Specific Considerations
Some lenders apply additional filters based on customer profiles, For example:
- Preferred customers (those with high balances or relationship value) may get faster approvals, higher limits or better rates.
- Tailored schemes may exist for specific business sizes, sectors or purposes.
Always check individual lender requirements before applying.
Documents Required to Apply for Business Loan
Submitting a complete, accurate and up-to-date set of documents is a critical step that significantly increases the likelihood of business loan approval. Any discrepancies or missing information can lead to delays or outright rejection.
| Document Category |
Examples |
| Identity & Address Proof | PAN Card, Aadhaar, Passport, Voter ID, Driving License, Utility Bills (last 2 months) |
| Business Registration | GST certificate, Trade License, MoA/AoA, MSME/Udyam Cert., Incorporation Certificate, ITRs |
| Financial Documents | Bank statements (last 6 months), ITRs (2–3 years), Audited P&L and Balance Sheet, Income Computation |
| Business Plan | Detailed plan outlining operations, loan usage, growth strategy |
| Collateral (if applicable) | Property papers, title deed, valuation reports, equipment/inventory invoices |
| Business-Specific Docs | Partnership Deed, Board Resolution, Sole Proprietor Declaration |
| Application Form & Photo | Completed loan application + passport-sized photo |
Tips for Smooth Submission
- Check your lender’s exact document list requirements may differ.
- Organize paperwork clearly and ensure all entries are accurate.
- Some lenders may request notarized documents for verification.
- For large loans, prepare a strong project report with projections.
How to Apply for a Business Loan on Buddy Loan
Follow these simple steps to apply for a business loan through the Buddy Loan platform:
Step 1: Visit buddyloan.com or download and install the Buddy Loan app (available on Android and iOS).
Step 2: Open the Business Loan Application section.
Step 3: Enter your mobile number and verify it using the OTP sent to you.
Step 4: Select your desired loan amount.
Step 5: Enter your personal email address.
Step 6: Choose ‘Business Loan’ as the loan type.
Step 7: Answer whether you have business proof (Yes or No).
If you select “Yes” (You have business proof):
- Enter your business details: Company Type, Business Name, Address, Years in Operation and Nature of Business.
- Fill in your personal details: Date of Birth, Gender, Highest Qualification, PAN, First Name and Last Name.
- Provide communication info: Residence Type, Duration at Current Address and Pin-code.
- Enter your income and banking details: Monthly Income, Preferred Bank and whether you use a Credit Card.
- Click ‘Submit’ to complete your application.
If you select “No” (No formal business proof):
- Select your profession type.
- Enter your personal details: Date of Birth, Gender, Qualification, PAN, First Name and Last Name.
- Provide communication info: Residence Type, Years at Current Address and Pin-code.
- Share your income and banking details: Monthly Income, Preferred Bank and Credit Card usage.
- Click ‘Submit’ to finish your business loan application.
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Factors That Influence Business Loan Approval June 2026
Lenders assess multiple factors before approving a business loan. Understanding these can help you strengthen your application and improve your chances of success.
- Credit History & CIBIL Score
A CIBIL score of 700+ is ideal. It shows you’ve managed credit responsibly. Scores below 700 may still qualify but could lead to higher interest or stricter terms. - Cash Flow & Repayment Capacity
Lenders review your bank statements and ITRs to understand income, expenses and cash flow trends. Consistent cash flow is key to proving repayment ability. - Business Age & Stability
Businesses with at least 2–3 years of operation are seen as more reliable. Newer ventures may face more scrutiny or need to apply through alternate lenders with flexible criteria. - Income-to-Debt Ratio
Lenders prefer a ratio where monthly expenses are under 30–40% of monthly income. A lower ratio indicates your business can comfortably take on new debt. - Working Capital & Collateral
Assets like equipment, inventory or property can strengthen your case especially for secured loans. Offering collateral reduces the lender’s risk and may improve terms. - Loan Amount, Tenure & Terms
Your requested loan amount, repayment period and any fees also influence approval. Lenders assess whether the loan structure fits your financial capacity.
How Credit Score Impacts Loan Terms
- High Score: Faster approval, better rates, higher loan limits.
- Low Score: Possible rejection or approval with higher interest and stricter terms.
Check Your Credit Score via Buddy Loan
This helps you monitor your financial health and prepare for a strong loan application. Some fintech lenders now also use alternative credit models, helping newer businesses get offers even with limited credit history.
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