Corporate loans, often referred to as corporate business loans, are specialized financial products only crafted to fulfill the financial requisites of companies, enterprises, or corporations. These loans serve as a means for businesses to secure capital for various purposes, ranging from operational expenses to expansion initiatives, equipment procurement, and working capital needs.
Corporate loans cater only to businesses, while other loans, like personal loans cater to individual needs. The interest rates for corporate business loans are variable and typically suit the business’s creditworthiness, prevailing market conditions, loan duration, and the intended use of the funds. Offering diverse structures, including term loans, lines of credit, asset-based loans, or commercial mortgages, corporate loans provide adaptable financial solutions specifically designed to address the varied financial requirements of businesses.
Read further to learn more about corporate loan rates and other basic details
When understanding corporate loan rates, it's essential to note that interest rates can significantly differ from one bank or financial institution to another. Understanding these variations enables businesses to compare rates offered by different lenders, ensuring they secure the most favorable terms suitable for their financial requirements and capabilities.
|Up to 10 years
|Up to 4% on the balance
Corporate loans come in various types, catering to diverse business needs:
To get a corporate loan approved, you must meet a set of eligibility criteria. Refer to the table below to know whether you are eligible for a personal loan.
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Here are the top banks and Non-Banking Financial Companies (NBFCs) that offer corporate business loan solutions, providing competitive rates and flexible terms to cater to diverse business needs and objectives. However, here is a curated list of leading financial institutions known for offering corporate loans with varying rates and features to support businesses in achieving their financial goals.
|9.75% - 25% p.a.
|10.00% - 22.50% p.a.
|12.75% - 44% p.a.
|1% per month onwards
|Up to 17% p.a.
|1.5% per month onwards
|Kotak Mahindra Bank
|16% p.a. onwards
|1.25% per month onwards
|Tata Capital Finance
|Up to 26% p.a.
Read LessNote: The interest rates are subject to change. Do visit the official website
Looking for a Business Loan?
To get quick approval for your corporate business loan, here are the eligibility criteria that an individual should meet. Refer to the table below to know whether you are eligible for the same:
|Min 21 - Max 65 (at the time of loan maturity)
|Min 2 years or above
|As per banks
|750 or above
Here are four key points highlighting aspects of business loans offered by banks and NBFCs for Corporate Loan:
A business loan can also directly help business requirements, mirroring the utility of corporate loans. To apply for a business loan, gather the necessary documentation, choose the right loan type, complete the application accurately, and submit it to your selected lender for evaluation and potential approval.
You can apply for a business loan on Buddy Loan with a pool of RBI approved lenders providing collateral free loans for your business needs.
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Repaying corporate loans promptly holds immense significance for businesses. It cultivates financial stability, fosters trust with lenders, and bolsters the business's credit profile, paving the way for easier access to future financing. Consistent repayments ease financial strain, ensuring smooth operations and offering opportunities for growth and expansion through improved financial planning and credibility in the market.
The primary purpose of a Corporate Loan is to provide businesses with essential financial support for various operational needs, such as expansion, working capital requirements, purchasing equipment, upgrading technology, funding projects, or meeting specific financial obligations.
The approval process for Corporate Loans involves a comprehensive assessment by the lending institution. It includes evaluating the business's creditworthiness, financial stability, business plan, cash flow projections, collateral (if required), and repayment capacity. Documentation substantiating the business's financial health, such as financial statements, balance sheets, income tax returns, and business plans, is also necessary.
Corporate Loans serve various purposes for businesses, including but not limited to:
Various types of Corporate Loans cater to diverse business needs, including:
Interest rates on Corporate Loans are influenced by factors like the business's credit profile, loan tenure, market conditions, loan amount, type of loan, collateral (if any), and the prevailing benchmark rates set by the central bank or financial markets.
Collateral requirements for Corporate Loans vary based on the lender and the loan type. While some loans may require collateral (such as property, equipment, or inventory), others might be available without collateral, especially for businesses with strong credit profiles. The need for collateral depends on the risk assessment conducted by the lender.
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