A business loan is a financial product designed to provide funding for businesses to help them grow and use their resources more effectively.
With the increasing start-ups,Business Loan in India is becoming a popular option for many entrepreneurs & getting an instant business loan is just a matter of a few absolutely instant.Low-interest business loans are also available to help save money on interest payments. Businesses can use the loan to buy inventory, expand, or cover short-term expenses.
Business Loan could vary based on several factors from Bank to Bank. Here’s a list of top Banks that offer Business Loan
|Bank||Interest Rate (p.a.)|
|State Bank of India(SBI)||8.90% onwards|
|HDFC Bank||10.00% - 22.50% p.a.|
|ICICI Bank||12.50% - 13.60% p.a.|
|Axis Bank||14.65% - 18.90% p.a.|
|Kotak Mahindra Bank||16% - 26% p.a.|
|RBL Bank||12.25% - 25% p.a.|
|Induslnd Bank||13% to 22%.|
Read LessNote: The above mentioned rates are subject to change with the finance market and differ marginally with the respect to the individual banks
You can avail business loans from NBFCs as well, several of them over varied loan options with interesting interest rates. Check out the tabular column for some popular NBFCs that offer business loans.
|NBFC||Interest Rate (p.a.)|
|Bajaj Finserv||9.75% - 30% p.a.|
|IIFL Finance||11.25% - 33.75% p.a.|
|FlexiLoans||Starting at 12% p.a.|
|ZipLoan||12% - 18% p.a. (Flat ROI)|
|Indifi Finance||15% - 24% p.a.|
|Lendingkart Finance||12%-27% p.a.|
|Tata Capital Finance||Starting at 19% p.a.|
|NeoGrowth Finance||19%-24% p.a.|
|Hero FinCorp||Up to 26% p.a.|
|Money View||Starting at 15.96% p.a|
|KreditBee||12.24% - 29.88% p.a.|
|mCapital||Starting at 24% p.a.|
Read LessThe above mentioned rates are subject to change with the finance market and differ marginally with the respect to the individual sectors
Business loan fees and charges are important to consider while you weigh your options on competitive interest rates. It impacts borrowing costs and affordability. Understanding their calculation and implications is crucial for borrowers. Rates can vary, affecting the overall borrowing cost.
|Interest Rates||10% - 21%|
|Loan Amount||Rs. 50,000/- to Rs.50,00,000/-|
|Loan Processing Fees||Rs 1000 - 75000/-|
|Loan Tenure||Up to 10 years|
|Prepayment Charges||Up to 4% on the balance|
Business loans in India help fuel growth, offer flexibility, and aid cash flow management for businesses. Timely repayments enhance credit history and future financing options.
Get your loan approved
Starting at 8.90% p.a.
Get the financial assets
Lending privileges for
women & assistance to
Avail the loan amount you
need to upscale your
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that suits you the best.
To get a business 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.
|Age||Min 21 - Max 65 (at the time of loan maturity)|
|Business Vintage||Min 2 years or above|
|Annual Turnover||As per banks|
|Credit Score||750 or above|
Business loan EMI calculator is a convenient tool for entrepreneurs to estimate monthly repayments on the loan amount you want to opt. Helps calculate loan amount, interest rate, and tenure to provide you with accurate EMI calculations.
Using an EMI Calculator to calculate Business Loan EMI, is the simplest way to calculate. Gain clarity on repayment schedule, affordability assessment, budgeting and overall financial planning for the business.
|Year||Month||Principal (A)||Interest (B)||EMI (A+B)||Balance||Loan Paid to Date (%)|
Here are some basic documents that you need to get while getting started with a Business Loan -
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-
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.
In India, several business loans are available to cater to different financial needs. Here are some common types of business loans offered:
1.Term Loans - For expansion, purchasing assets, or working capital needs.
2.Working Capital Loans - Working capital loans fund day-to-day operations and bridge cash flow gaps for expenses like inventory, payroll, and supplier payments.
3.Machinery and Equipment Loans - Finance purchasing or leasing machinery, equipment, or vehicles necessary for business operations.
4.Small Business Administration (SBA) Loans -Small business loan backed by the government.
5.Business Line of Credit - Provides a revolving credit facility, allowing businesses to withdraw funds as needed.
6.Invoice Financing - This loan type enables businesses to access funds by selling their unpaid invoices to a lender, also known as accounts receivable financing.
7.Trade Finance - Trade finance loans facilitate international trade transactions by providing financing for import or export activities, including letters of credit, export financing, and supply chain financing.
8.Startup Business Loan - Designed to support new businesses in their early stages.
Applying for a business loan can be confusing for a first timer, that's why few tips help you to go in the right direction. Check out these tips before applying for a business loan to help you out-
Here’s the step-by-step process that you can follow to apply for a business loan on Buddy Loan:
Step 2 - Fill out the application form including the loan amount, the tenure months, and contact details.
Step 3 - Fill out the eligibility form and provide:
Step 4 - Cross verify the given information and submit the application.
Ready to take next step ?
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 interest rate of a business loan can vary depending on factors such as the borrower's creditworthiness, loan amount, loan tenure, and prevailing market conditions.
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.
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