Apply for Business Loan Online up to 50 Lakh

A Business Loan helps business owners access funds for working capital, expansion, inventory, equipment, marketing, vendor payments, or cash flow gaps. With Buddy Loan, you can apply for a business loan online and compare offers from multiple lending partners based on your eligibility. The process is digital, simple, and designed for MSMEs, self-employed professionals, traders, retailers, service providers, and growing enterprises. Before choosing any offer, compare the interest rate, processing fee, repayment tenure, prepayment charges, and total EMI burden.

Get Your Loan Eligibility Now!

Best Business Loan Offers

Compare Business Loan offers from lending partners based on interest rate, processing fee, and maximum loan amount. The final offer may vary depending on business turnover, credit score, business vintage, bank statements, repayment capacity, and lender policy.

Lender Name	Interest Rate p.a.	Processing Fee	Max Loan Amount	Apply Online
LendingKart	17.25% onwards	Up to 3% of the loan amount	Up to ₹50 lakh	Apply Now
FlexiLoans	Starting from 1% per month	2% to 4%	Up to ₹1 crore	Apply Now
Indifi	Starting from 1.5% per month	Up to 4%	Up to ₹50 lakh	Apply Now
Protium	18% onwards	Up to 7%	Up to ₹5 crore	Apply Now
Kotak Mahindra Bank	9.50% onwards	Up to 2% of the loan amount	Up to ₹1 crore	Apply Now
HDFC Bank	10.75% onwards	Up to 2% of the loan amount	Up to ₹1 crore	Apply Now

Note: The above-mentioned rates are subject to change with the financial market and differ marginally with respect to the individual lenders.

Business Loan by Banks

Banks offer Business Loan options for MSMEs, traders, manufacturers, service providers, self-employed professionals, and established businesses. The final rate, fee, and loan amount depend on the borrower’s credit profile, business vintage, turnover, banking history, repayment capacity, and the specific loan scheme chosen.

Lender Name	Interest Rate p.a.	Processing Fee	Max Loan Amount
HDFC Bank	10.75% onwards	Up to 2% of the loan amount	Up to ₹1 crore
ICICI Bank	10.50% onwards	Up to 2% of the loan amount	Up to ₹75 crore
Axis Bank	10.99% onwards	Up to 2% + taxes	Up to ₹35 lakh
State Bank of India	9.10% onwards	Up to 0.65%	Up to ₹50 lakh
Kotak Mahindra Bank	9.50% onwards	Up to 2% of the loan amount	Up to ₹1 crore
IndusInd Bank	13% onwards	Up to 3% of the loan amount	Up to ₹50 lakh
IDFC FIRST Bank	12.99% onwards	Up to 3.5% of the loan amount	Up to ₹1 crore
RBL Bank	10.45% onwards	Up to 2% of the loan amount	Up to ₹50 lakh

Note: The above-mentioned rates are subject to change with the financial market and differ marginally with respect to the individual banks.

Business Loan by NBFCs

NBFCs and digital lending platforms offer Business Loan options for MSMEs, self-employed professionals, retailers, traders, and service-based businesses. These lenders may offer faster digital processing, collateral-free funding, and flexible eligibility checks, but the final offer depends on credit score, turnover, business vintage, bank statements, and lender assessment.

Lender Name	Interest Rate p.a.	Processing Fee	Max Loan Amount
Bajaj Finance	14% to 23% p.a.	Up to 4.72% of the loan amount	Up to ₹80 lakh
Tata Capital	12% to 30% p.a.	Up to 3% of the loan amount + taxes	Up to ₹90 lakh
IIFL Finance	12% to 28% p.a.	Up to 5% + GST	Up to ₹75 lakh
Hero FinCorp	Starting from 14% p.a.	As per the bank terms	Up to ₹50 lakh
LendingKart	Starting from 17.25% p.a.	Up to 3% of the sanctioned amount	Up to ₹50 lakh
FlexiLoans	Starting from 1% per month	2% to 3%	Up to ₹50 lakh
Indifi	Starting from 1.5% per month	Up to 4%	Up to ₹50 lakh
KreditBee	12% to 28.5% p.a.	Up to 5.1% + GST	Up to ₹1 crore
Moneyview	Starting from 14% p.a. through lending partners	As per the bank terms	Up to ₹5 lakh

Note: The above-mentioned rates are subject to change with the financial market and differ marginally with respect to the individual NBFCs.

Business Loan Interest Rate & Charges

Business Loan interest rates and charges affect the actual cost of borrowing. A low-interest business loan may not always be the cheapest option if processing fees, foreclosure charges, and penalty charges are high.

Charge Type	Indicative Range
Interest Rate	Around 10.75% to 30% p.a., depending on lender and profile
Loan Amount	Usually ₹50,000 to ₹50 Crore, based on eligibility
Processing Fee	Nil to 5% of the loan amount, depending on the lender
Tenure	12 months to 60 months, sometimes longer for secured loans
Prepayment or Foreclosure Charges	Nil to 5%, depending on lender and loan type
Bounce Charges	Usually charged per failed EMI mandate
Penal Charges	Charged for overdue EMI or delayed repayment

Business Loan Features & Benefits

Learn about the features and benefits of a Business Loan that can support your growth and expansion plans.

Quick Disbursal

Receive funds without unnecessary delays.

No Collateral Required

Access funds without pledging assets.

Fast Approval

Quick processing to support your business.

Minimal Documentation

Less paperwork, faster application.

Flexible Usage

Use funds for expansion, inventory, or operations.

Competitive Interest Rates

Affordable options for growing businesses.

Business Loan Eligibility Criteria

Eligibility differs by lender, but most banks and NBFCs check the same basic factors before approving an online MSME loan application. For example, HDFC Bank lists Indian nationality, age, turnover, income, and business experience as key eligibility checks, while Bajaj Finance lists nationality, business vintage, CIBIL score, work status, and age as basic criteria.

Age Requirement: Applicants should usually be between 21 and 65 years of age.
Business Vintage: Businesses should generally have 1 to 3 years of vintage, depending on lender policy.
Indian Residency: The applicant should be an Indian resident.
Regular Business Income: A business should have regular income or turnover.
Credit Score Requirement: A credit score of 650 or above may improve approval chances, while some lenders may prefer 700 or 750 or above.
Stable Bank Statements: Bank statements should show a stable cash flow.
Business Registration Proof: GST registration, Udyam registration, ITR, or business proof may be required.
Manageable Existing EMIs: Existing EMIs and debt obligations should be manageable.

Startup Loan Eligibility: Business loans for startups may require a stronger business plan, projected revenue, collateral, or government-backed scheme eligibility.Salaried Applicant Eligibility: Business loans for salaried individuals are usually considered only when the applicant also has eligible business income, professional income, or valid business proof.

Documents Required For Business Loan

Keep documents ready before applying to avoid delays in verification and approval.

Document Type	Examples
Identity Proof	PAN card, Aadhaar card, passport, voter ID
Address Proof	Aadhaar card, utility bill, rent agreement, passport
Business Proof	GST certificate, Udyam registration, shop act licence, partnership deed, and company registration certificate
Income Proof	ITR, audited financials, profit and loss statement, balance sheet
Bank Statements	Last 6 to 12 months’ current account or savings account statements
Tax Documents	GST returns, income tax returns, tax payment challans
Ownership Proof	Sole proprietorship declaration, partnership deed, MOA/AOA, board resolution, where applicable
Other Documents	Passport-size photo, cancelled cheque, and loan application form

Business Loan EMI Calculator

A Business Loan EMI Calculator helps you estimate your monthly repayment before applying. It gives a quick view of EMI, total interest, and total repayment amount.
Steps to use the EMI calculator:

Enter the required loan amount.
Add the expected interest rate.
Select the repayment tenure in months.
Check the estimated EMI.
Compare different loan amounts and tenures.
Choose an EMI that fits your business cash flow.

Also Check: Mudra Loan Calculator | PMEGP Loan Calculator | Machinery Loan Calculator | MSME Loan Calculator

Business Loans offered by the Government

Government-backed schemes are useful for MSMEs, micro businesses, first-time entrepreneurs, women entrepreneurs, SC/ST entrepreneurs, and units looking for collateral support. These schemes are generally routed through banks or eligible lending institutions.

Scheme	Key Benefit
Pradhan Mantri Mudra Yojana	Loans up to ₹20 lakh under categories, including Tarun Plus, for eligible borrowers
CGTMSE	Credit guarantee support for collateral-free loans to eligible MSE borrowers
PMEGP	Project cost support up to ₹50 lakh for manufacturing and ₹20 lakh for service units
Stand-Up India	Loans between ₹10 lakh and ₹1 crore for eligible SC/ST and women entrepreneurs. Check current availability before applying
Startup India-linked support	Helps eligible startups access recognition, benefits, and funding support through approved routes
NABARD-linked schemes	Supports agriculture, rural enterprises, and allied business activities through eligible institutions

Business Loan by government offer a viable alternative to private lenders. These loans play a crucial role in financing business ventures, with a range of tailored products available under various government schemes to meet the diverse needs of entrepreneurs and enterprises.

Here are some government schemes for business loan-

1. Pradhan Mantri Mudra Yojana (PMMY)

Pradhan Mantri Mudra Yojana (PMMY) is a government scheme in India that provides financial assistance to small and micro enterprises through loans up to Rs. 10 lakh, promoting entrepreneurship and job creation.

2. Credit Guarantee Fund Scheme (CGTMSE)

The Credit Guarantee Fund Scheme (CGTMSE) is a government initiative in India that provides credit guarantees to financial institutions to encourage them to extend collateral-free loans to small and medium-sized enterprises (SMEs), facilitating their access to credit and promoting entrepreneurship.

3. Stand-Up India Scheme

The Stand-Up India Scheme supports women and SC/ST entrepreneurs by providing bank loans between ₹10 lakh and ₹1 crore for setting up greenfield enterprises in various sectors.

4. National Small Industries Corporation (NSIC)

NSIC supports the growth of MSMEs in India through marketing, technology assistance, credit facilitation, and training programs.

5. Startup India Scheme

The Startup India Scheme fosters entrepreneurship in India by providing funding, tax benefits, and simplified regulations to support the growth of startups.

6.Make in India Soft Loan Fund (MUDRA)

Make in India Soft Loan Fund (MUDRA) provides financial assistance to small businesses in India, promoting entrepreneurship and sectoral growth.

7. Export Credit Guarantee Corporation (ECGC)

The Export Credit Guarantee Corporation (ECGC) is a government organization in India that provides export credit insurance services to exporters and banks.
It helps mitigate the risks associated with exporting goods and services, facilitating international trade.

8. SIDBI Make in India Loan for Enterprises (SMILE)

SIDBI’s SMILE program provides financial assistance and support to small and medium enterprises (SMEs) under the Make in India initiative.
It aims to foster entrepreneurship, innovation, and job creation by offering loans and other financial products tailored to the needs of SMEs.

9. Stand-Up India for Women Entrepreneurs

Stand-Up India is a government scheme that empowers women entrepreneurs by providing financial support and resources to start and grow their businesses.

10. National Bank for Agriculture and Rural Development (NABARD)

NABARD is a financial institution in India that focuses on agricultural and rural development, providing credit, loans, and support to farmers, rural communities, and agricultural enterprises.

Please note that this is not an exhaustive list, and there are other government schemes available to support business loans in India. It’s always advisable to explore specific scheme details and eligibility criteria to determine the most suitable option for your business.

Types of Business Loan

Different businesses need different funding structures. Choose the loan type based on use, repayment ability, and documentation.

Term Loan: Useful for expansion, renovation, working capital, or asset purchase.
Working Capital Loan: Helps manage daily business expenses, vendor payments, salaries, and short-term cash flow gaps.
MSME Business Loan: Designed for micro, small, and medium enterprises.
Collateral Free Business Loan: Does not require pledged assets, but approval depends on credit and income profile.
Machinery Loan: Used to purchase machines, tools, or equipment.
Invoice Financing: Helps businesses unlock funds against unpaid invoices.
Merchant Cash Advance: Repayment may be linked to card sales or business receivables.
Overdraft or Line of Credit: Allows flexible withdrawals up to an approved limit.
Business Expansion Loan: Helps open a new branch, add inventory, hire staff, or increase capacity.
Startup Financing: Useful for early-stage businesses, usually with stricter checks.

Also Read: Business Loan Overdraft Account | Equipment Loan

Steps to Apply for a Business Loan

You can apply for a Business Loan online through Buddy Loan by entering your basic personal, PAN, business, and loan requirement details, after which eligible offers are displayed for comparison.

Visit the Buddy Loan Business Loan page and enter your mobile number.
Select the required consent checkboxes to allow credit assessment and agree to the Terms of Service and Privacy Policy.
Enter the 4-digit OTP sent to your registered mobile number.
Fill in your personal details, including your first name, last name, personal email ID, gender, date of birth, and communication address pincode.
Click on Continue.
Enter your PAN number as per your PAN card.
Select your employment type, such as self-employed business.
Choose whether you have a GST number.
- If you have a GST number, enter your GST number, business name, business vintage, business type, business nature, and annual turnover.
- If you do not have a GST number, enter your business name, business nature, and monthly income.
Click on Continue after adding the business details.
Select the required Business Loan amount and choose the purpose of the loan from the dropdown menu.
Click on Continue to submit your requirement.
Once you submit, Buddy Loan checks available Business Loan offers based on your profile.
Review the offers displayed on the screen, including loan amount, EMI, processing fee, ROI, and loan approval chance.
Click on Apply Now for the offer that suits your requirements.

Tips Before Applying for a Business Loan

Before you submit an application, check whether the loan is affordable and suitable for your business needs.

Borrow only the amount your business can repay comfortably.
Compare interest rate, processing fee, tenure, foreclosure charges, and EMI.
Keep bank statements, GST returns, ITR, and business proof ready.
Check your credit score before applying.
Avoid applying to too many lenders at the same time.
Use an EMI calculator to check affordable EMI before final submission.
Choose the right product, such as a working capital loan, MSME funding, machinery loan, or business expansion loan.
Read the sanction letter carefully before accepting the offer.
Do not use business funds for unrelated personal expenses.
Track EMI due dates to avoid bounce charges and credit score impact.

Download the Buddy Loan App Now!

One solution to each of your financial needs at your fingertip.

Scan to download now

Frequently Asked Questions

Find answers to common questions about this topic

Consider lenders who offer quick loan approvals. Fintech companies and online lenders may have streamlined processes and faster turnaround times than traditional banks.

The maximum amount of a business loan can vary depending on the lender, borrower's eligibility, and other factors, but it can range from a few lakhs to crores of rupees.

Getting a business loan as a fresher can be challenging due to the lack of established track record and financial stability. However, with a strong business plan and collateral or a co-signer, it's possible to increase the chances of obtaining a loan.

The processing fee for a business loan can vary among lenders and is typically a percentage of the loan amount.

The specific documentation requirements for a business loan in State Bank of India (SBI) may vary based on the type of loan and the borrower's profile. However, the general list of documents i.e. required which can be referred from above.

The business loan amount itself is not taxable as it is considered a liability and not an income.

You can apply for a business loan online by entering your mobile number, verifying OTP, adding business and income details, uploading required documents, and comparing eligible lender offers before selecting the final loan.

Business Loan interest rates usually vary based on the lender, credit score, business turnover, loan amount, tenure, and repayment capacity. Based on current lender pages, public ranges can start from around 10.75% p.a. and may go higher for unsecured or risk-based lending.

Yes, many banks, NBFCs, and digital lenders offer collateral-free business loan options. Approval depends on credit score, income stability, business vintage, bank statement strength, and lender policy.

MSME owners, traders, manufacturers, service providers, shop owners, self-employed professionals, and eligible startups can apply for an MSME business loan if they meet the lender’s age, income, business vintage, and documentation requirements.

A Business Loan for startups can help with setup costs, inventory, hiring, marketing, or early operations. However, new businesses may face stricter checks because they may not have a stable revenue history. Government schemes, secured loans, or co-applicant support may improve approval chances.