Top 5 Business Loans in India

Top 5 Business Loans in India

Most leading banks and NBFCs offer a business loan in India at competitive interest rates to help businesses fulfill their business aspirations. The business loan can be used to meet a wide range of business requirements, including working capital needs, purchase of machinery, supply chain financing, asset acquisition, etc.

Best business loans in India 2020

 State Bank of India business loan

State Bank of India offers a business loan for a variety of business requirements of different segments of business engaged in manufacturing, service activity, retail trade along with self-employed individuals and professionals.

Key details of SBI business loan are as under:

Minimum loan amount 10 lakhs
Maximum loan amount 20 crore; based on past performance or projected sales
Repayment tenure Up to 15 years
Processing fees 1% of the limits subject to a maximum cap of 10 lakh
Interest rate Varies from loan to loan

Why SBI business loan?

  • Business loan under multiple categories for several business requirements
  • Easily accessible with its pan India presence
  • Comparatively lower interest rates
  • Higher loan eligibility

ICICI Bank business loan

ICICI Bank offers customized financial solutions for businesses to fulfil their capital related challenges and requirements. Existing bank customers can get an overdraft facility up to Rs. 25 lakh. Key features of ICICI bank business loans are as follows.

Interest rate For secured facilities: up to RR + 6.0 % (Non PSL)

For unsecured facilities: up to RR + 7.10%

Loan amount The loan amount will be based on the future cash flows of the business
Processing fee Up to 2% of loan amount + GST
Loan tenure Up to 72 months
Foreclosure charges A prepayment premium of 4% shall be payable by the borrower. No foreclosure charges for customers categorized under MSE

Why ICICI Bank business loan

  • Lucrative deal
  • Overdraft facility up to Rs. 25 lakh
  • Instant and hassle-free loan
  • Flexible tenure goes from 12 months to 72 months
  • A wide range of business loans for SMEs

HDFC business loan

HDFC Bank offers various banking products at an attractive interest rates to its customers. HDFC Bank business loans are offered for different financial requirements of businesses. HDFC business loan of up to Rs. 50 lakh is available without any collateral. Here are the key features of the HDFC Bank business loan.

Interest rate From 12.75% to 21.90% p.a.
Prepayment charges Prepayment is not allowed until first 6 EMIs

07-24 Months – 4% of principal outstanding

25-36 Months – 3% of principal outstanding

After 36 Months – 2% of principal outstanding

Processing fee Up to 2.5% of the loan amount (subject to a min Rs. 2359 & max Rs. 88500)
Loan amount Upto Rs. 40 lakh (Rs. 50 lakh in select locations)
Loan tenure From 12 months to 48 months

Why HDFC Bank business loan?

  • Hassle-free documentation process and doorstep facilities
  • No hidden charges, lowest processing fee, and hassle-free application
  • Minimal paperwork and documentation
  • Dropline overdraft facility
  • Business loan balance transfer facility with ease
  • Tax benefits as per applicable laws

Kotak Mahindra business loan

Kotak Mahindra Bank offers a business loan for its borrowers to help them diversify their business. The loan amount offered goes up to Rs. 75 lakhs. The bank also provides funds against credit card receivables (FCCR) up to Rs. 3 crores for borrowers to fulfill their business milestones.

Key features of Kotak Mahindra Business Loan are as under.

Interest rate 16% p.a. onwards
Loan amount From Rs. 5 lakh to Rs. 75 lakh
Loan processing charge Up to 2% of the loan amount + GST
Prepayment charge Lock-in period for 12 months

After 12 months, 5% of outstanding + GST

Loan tenure From 6 months to 48 months
Cheque bounce charges Rs. 750 per instance

Why Kotak Mahindra’s business loan?

  • Loan amount available ranges from Rs. 5 lakhs to Rs. 75 lakhs
  • Hassle-free and quick approval
  • FCCR up to Rs. 3 crores
  • Unsecured business loan

Axis Bank business loan

Axis Bank business loans are available with attractive features such as competitive interest rate, nominal processing fees, no foreclosure charges, no prepayment charges, etc. With Axis Bank, you can get a business loan for a variety of financial requirements of a business, such as business expansion, business property, working capital and purchase of equipment. Key features of an Axis Bank business loan are as under:

Rate of interest 14.5% p.a. onwards
Processing charge Up to 2% of the loan amount + GST charges
Prepayment/foreclosure charge NA
Collateral required NA
Loan amount Up to Rs. 50 lakhs
Loan tenure Up to 60 months

Why Axis Bank business loan

  • The minimum age requirement to get a business loan
  • Quick approval with minimal documentation

No foreclosure charges