Apply for Business Loan

On our single online platform, the business loan interest rates offered by financial institutions vary from lender to lender and are further determined as per the applicant's profile, creditworthiness, eligibility & business requirements. Check, compare and apply for business loan at competitive interest rates. Below mentioned is the tabular representation of the comparison of business loan interest rates offered by leading Banks and NBFCs. 

Note: Business Loan Interest Rates are updated as on May 2023.

Financial institutions offer collateral-free online business loan of amounts maximum of up to Rs. 2 crores, whereas there is no minimum limit to borrow. Moreover, Small Business Loans, Startup Loans, and Micro Loans are also available for individuals, self-employed professionals, business owners, Startups, MSMEs, and other business entities at competitive interest rates.

• Minimum age of the applicant should be 21 years and maximum up to 65 years at time of loan maturity
• Work Status: Self-employed
• Business Tenure: Minimum 1 year or above
• Minimum Annual Turnover: Shall vary from lender to lender
• Credit Score: 750 or above
• Applicants with no past loan defaults with any financial institutions

Eligible Entities

• Individuals, Business Owners, Entrepreneurs, Self-employed professionals (CAs/CSs/Doctors/Architects), Startups, and MSMEs
• Private and Public Limited Companies, Sole Proprietorships, Partnership Firms, Limited Liability Partnerships (LLPs), and Large Enterprises engaged only in the Manufacturing, Trading, or Services Sectors
• NGOs, Co-operative Societies and Trusts, etc.

When applying for a business loan, you will need to submit the following documents:

• Duly filled application form along with passport-sized photographs
• KYC Documents of the applicant, including PAN card, Passport, Aadhar Card, Driving License, Voter ID card, Utility Bills (Water/Electricity Bills)
• Last 1 years’ bank statement
• Copy of Non-Collateral Overdraft, if any
• Copy of Business Incorporation
• Any other document required by the lender

The business loan fees and charges or any type of business loan shall vary from lender to lender and case to case. Usually, the fees and charges depend on the applicant's profile, creditworthiness, nature and type of business, desired loan amount, offered interest rate, repayment tenure, and several other factors.

Apply for Business Loan by following below mentioned 4 simple steps:

Step 1: Fill in the required fields as mentioned in the form and Check the box to agree on terms and further Click to ''Unlock Best Offers''.

Step 2: Further you will be required to mention your company details, and basic personal information, along with your registered mobile number and email address.

Step 3: After submitting all the details, the bank's representative will contact you to proceed with loan formalities.

Step 4: Once your loan application and documents are verified and approved by the bank, within defined working days the loan amount shall get disbursed in your mentioned bank account.

Term Loan

Term loan is offered under various types, such as short-term loan, long-term loan and other small business loans. The loan amount offered under term loan depends on the applicant’s profile and business requirements that can be repaid in 12 months to 5 years, in the form of EMIs. Term loans are divided into two parts, unsecured business loans, and secured business loans. Secured loans require collateral to be submitted with the lender, which is not the case with unsecured business loans.

Working Capital Loan

Working capital loans are availed to meet the day-to-day business requirements or to manage business cash flow. The working capital loan can be availed for various other purposes, such as business expansion, buying equipment or machinery, purchasing raw materials or goods, paying off salaries or rent, enhancing inventory, and much more. Usually, the repayment tenure offered by most lenders is up to 12 months which shall exceed as per business requirements and the sole discretion of the lender.

Bill/Invoice Discounting

Invoice discounting is a financial instrument offered by Banks/NBFCs. Bill Discounting is a source of working capital finance for the seller of goods on credit. It is a discount that a financial institution takes from a seller’s customer. Through the payment being made by letter of credit, the buyer has the option of buying goods from the seller. Bills that come under bill discounting are termed Bills Of Exchange.

Letter of Credit (LC)

Letter of credit is a payment instrument used mainly in international trade in which the bank provides a monetary guarantee to enterprises that deal in the import and export of goods. Enterprises doing business overseas have to deal with unknown suppliers and they require assurance of payment before performing any transaction. Therefore, a letter of credit is important to provide payment assurance to the suppliers or exporters.

Point-of-Sale (POS) Loan / Merchant Cash Advance

Point-of-Sale Loan is a type of credit facility wherein merchants offer funding to their customers at the point of their purchase. Business owners, Enterprises, MSMEs, Entrepreneurs, and Retailers can avail such funding. Loans against POS machines to start a new business or to manage their existing businesses. POS Loan, also termed Merchant Cash Advance is a loan type in which the sanctioned amount depends on the business volume generated via POS terminals.

Overdraft (OD)

An overdraft means overdrawing money from one’s current/savings account even if the account balance is zero or even below. An agreed rate of interest will be charged if the overdrawn amount is within the limits of a preceding agreement. The interest rate is charged only on the utilized amount of the total withdrawal or sanctioned limit.

Q1. What is a good credit score to get instant business loans?

Ans. Any credit score that is 750 or above is considered good by financial institutions. The maximum credit score is 900 and any score close to it shall be preferred first by lenders.

Q2. How to choose the ideal repayment tenor for business loans?

Ans. Ideally, if you avail short-term loan then the repayment tenure should not exceed 12 months. However, it may increase as per the desired loan amount. The maximum repayment period can be chosen up to 5 years depending upon the loan amount that may exceed as per business requirements.

Q3. What is the impact of GST on business loans for new businesses?

Ans. GST plays an important role in getting business loans, as the more the GST is paid, the larger shall be the business volume. Therefore, it becomes easy for banks to rely on such applicants or borrowers that pay their GST.

Q4. What is the minimum turnover requirement for a loan to start a business?

Ans. The minimum annual turnover criteria are defined by the lender and vary from bank to bank. 

Q5. What are the pre-closure and part-prepayment charges in business loans?

Ans. The pre-closure and part-payment charges vary from lender to lender. It may be Nil from some Banks and may exceed up to 5% of the loan amount from others. Ensure to check the same with your lender.

Q6. What are the loan schemes initiated by the Government of India?

Ans. Some of the popular schemes include MUDRA Yojana under PMMY, SIDBI loan, CGTMSE, PMEGP, Standup India, Startup India, psbloansin59minutes.com, NSIC, NABARD, etc.

Q7. I want to start a dairy farming business. so how can I get a small business loan of Rs. 10 lakhs? 

Ans. To get a small business loan you can check and compare all the available options under a single web platform and get a collateral-free small business loan up to Rs. 10 lakhs at low-interest rates. You can also apply for a Mudra loan under PMMY or a loan with Private sector banks, NBFC, or small finance banks.