Business Loan

In today’s fiercely competitive business landscape, securing adequate financial support is crucial for entrepreneurs and enterprises alike to fuel their growth aspirations. Whether it’s expanding operations, purchasing new equipment, or managing working capital, the right business loan can be a lifeline for businesses looking to seize opportunities and overcome challenges. In the dynamic Indian market, where innovation and entrepreneurship thrive, finding the best business loan is an essential step towards realizing one’s commercial ambitions. Here we uncovering the top contenders that offer tailored solutions and favorable terms, empowering businesses to thrive in this economic powerhouse. From traditional banks to emerging fintech players, we explore the finest options available to propel businesses towards success.

Best Business Loans in India

HDFC Bank Business Loan

HDFC Bank Business Loan is a financing solution offered by HDFC Bank, one of the leading banks in India. Designed specifically for entrepreneurs and business owners, this loan provides the necessary capital to meet various business requirements. Whether you need funds for expansion, working capital, purchasing equipment, or any other business-related expenses, HDFC Bank Business Loan offers competitive interest rates, flexible repayment options, and quick processing times.

Interest rate:
10% to 22.50% (IRR)

Age:
21-65 years

Loan amount:
₹50 lakhs (up to ₹75 lakhs in select locations)

Key Features:

• Check if you’re eligible for a loan online.
• Calculate your monthly loan installment online.
• Get an overdraft facility ranging from INR 5 lakh to INR 15 lakh.
• Transfer your business loan at an interest rate of 15.75% with charges up to 0.99%.
• Explore available insurance options.
• Get a business loan without the need for collateral.

State Bank of India Business Loan

SBI provides business loans to help fund various business requirements, such as expansion, working capital, machinery purchase, or technology upgrades. The loans are offered at competitive interest rates and flexible repayment options, tailored to the specific needs of the business. With its extensive network and strong reputation, SBI is a trusted partner for businesses looking to grow and prosper. Whether it’s a small enterprise or a large corporation, SBI’s Business Loan is designed to provide the necessary financial backing to fuel success and drive innovation in the Indian business landscape.

Interest rate:
8.25% to 15.90%

Age:
21-65 years

Key Features:

Customized business loans: Loans tailored to fit your specific needs and requirements.
Availability of need-based finance: Access to financing options based on what you actually need.
Flexible repayment tenure: The ability to choose a repayment schedule that works best for you.

ICICI Bank Business Loan

ICICI Bank offers business loans that cater to the specific needs of businesses. These loans provide flexible options such as an overdraft facility and to secure the loan, you can provide collateral such as property, fixed deposits, or savings in your current account, which should have a realizable value. If you opt for an overdraft facility, you can get a loan up to 90% of the value of your fixed deposit as collateral. The repayment period for this type of loan can go up to 18 months. For non-fund and term loans up to INR 2 crore, you can choose a tenure of up to seven years. However, for loans ranging from INR 1 crore to INR 10 crore, ICICI Bank assesses your eligibility based on the simplicity of your GST returns.

Interest rate:
12.25% (Secured Loans)

Age:
25-65 years

Loan amount:
from INR 15 lakhs

Key Features:

• Online account management for convenient loan tracking and repayments.
• Collateral-free options available for select businesses.
• Access to additional banking services and products to support business growth.
• Foreclosure allowed.

Axis Bank business loan

Axis Bank business loan offers a comprehensive financing solution for businesses. It is perfect for borrowers seeking a short-term loan with a repayment period of up to three years. The best part is that you don’t need to provide any collateral or pay a margin. Unlike other banks like SBI, Axis Bank’s loan offering is simple and straightforward. To be eligible, your business should have been running for at least three years and have a minimum turnover of INR 3 lakh.

Interest rate:
11.25% to 18.75%

Key Features:

• Flexible loan repayment options tailored to your business needs.
• High loan amounts available to meet your business requirements.
• Collateral-free loans for eligible businesses.
• Check your eligibility and apply for a business loan easily through Axis Bank’s online platform.
• Choose from a variety of loan options, including overdraft, cash credit, term loan, and loans against fixed deposits.

Kotak Mahindra Bank Business Loan

Kotak Mahindra Bank offers a comprehensive range of business loans tailored to meet the financial needs of entrepreneurs and enterprises. With a solid reputation and a customer-centric approach, Kotak Mahindra Bank’s business loans provide the necessary capital for businesses to expand, invest in new projects, manage working capital, or meet other business requirements. These loans come with flexible repayment options, competitive interest rates, and quick approval processes.

Interest rate:
Up to 16.25% (Overdraft)

Age:
25-65 years

Loan amount:
from INR 3 lakhs upto 75 lakhs

Key Features:

• Offers business loans to small, medium, and large-sized businesses.
• The loan is collateral-free and helps fulfill operational and financial obligations.
• Loans up to INR 10 lakh have an overdraft facility with an interest rate of 15% to 16.25% and no annual renewal fee.
• Loans up to INR 3 crore can be obtained through funds against credit card receivables (FCCR).
• Various fund-based and non-fund-based facilities are available, including cash credit, invoice financing, bill discounting, LCBD facility, and securitization of receivables.
• Availability of FCCR.

Punjab National Bank Business Loan

Punjab National Bank gives loans to small and medium-sized businesses (MSMEs) and big companies separately. Most of the MSME loans from PNB require you to provide something valuable as security or a down payment so that you can get the loan at a lower interest rate. The bank also considers your CIC rating score when deciding whether to give you a loan. The loans have different time periods that you can choose from: 1 year, 3 years, 5 years, 7 years, 10 years, and 12 years. If you use the overdraft facility, you need to renew the loan payment every 12 months. If you apply for a business loan with security, you need to pay a collateral fee. This fee can be 25% to 50% of the sales you reported in your GST returns, the value of your property, your annual sales and receipts, or four times your annual income. If you choose to provide a down payment instead, it should be 10% to 25% of the loan amount. There are also other charges like an upfront fee, documentation fee, and processing fee, among others.

Interest rate:
10.15% onwards

Loan amount:
from INR 10 lakh to INR 25 crore

Key Features:

• Low charges applicable for business loans.
• Loans can be taken as a lump sum amount or as an overdraft facility.
• Collaterals can be kept for both short-term and long-term loans.

IndusInd Bank Business Loan

IndusInd Bank offers a comprehensive range of financial solutions, and one of its prominent offerings is the IndusInd Bank Business Loan. To be eligible, a business should have made a profit and have a minimum turnover of INR 1 crore in the latest financial year. Additionally, the business should have three years of audited financial statements. These loans are suitable for individuals who need short-term cash for their day-to-day operations and financial obligations. The repayment tenure can be up to four years. Having a steady salary commitment is necessary to obtain the loan. If a business has already completed EMIs of previous loans amounting to at least INR 4 lakh and has a clean payment track record for the past 12 months, they have a higher chance of getting approved for an IndusInd Bank Business Loan.

Interest rate:
13% to 22% (Fixed RoI)

Age:
25 years – 70 years (for 2nd generation businessman age 21 years)

Loan amount:
Upto 50 Lakhs

Key Features:

• Loan Tenure up to 48 months.
• Easy documentation and speedy processing.
• Best suited for borrowers looking for fixed rates of interest on short-term loans.

India’s financial landscape offers a multitude of options when it comes to business loans. The top lenders mentioned above, such as State Bank of India, HDFC Bank, ICICI Bank, and others, have established themselves as reliable sources of funding for businesses across the country. However, it’s crucial for entrepreneurs and business owners to thoroughly research and evaluate their specific requirements before choosing the best business loan. By making an informed decision and selecting the right business loan, entrepreneurs can secure the necessary financial support to fuel their growth and achieve their business goals in the dynamic and vibrant Indian market.