Finance received from banks for the purpose of investment in a business by way of working capital and term loan is a Business Loan. The term loan is provided for capital investment like the purchase of plant and machinery, repairs of the existing plant and machinery, to build infrastructure, to expand the existing business, and any other requirement to expand the business to the next level. The working capital finance is to meet the operational expenses.
Interest Rate | 14.00% onwards |
Processing Fee | Upto 3% of loan amount |
Loan Tenure | Upto 5 years |
Lowest EMI per lakh | ₹ 2,327 for 5 years |
Bank | Business Loan Interest Rates | Processing Fee |
HDFC Bank Business Loan Rates | 11.90% | Rs. 499 |
IDFC First Bank | 19.00% | 2.00% |
IIFL | 16.00% | Up to 2% |
Bank of Maharashtra | 14.50% | Upto 3% of the loan amount |
IndusInd Bank | 13.00% | 2.50% |
Kotak Bank | 16.00% | Maximum 2% of the loan |
ICICI Bank Business Loan Rates | 16.50% | Starting from 0.99%, Up to 2% |
RBL Bank Business Loan Rates | 18.50% | 2.50-3.00% of loan amount |
Tata Capital Business Loan Rates | 19.00% | From 1.50% to 2.50% |
Lendingkart | 12.00% | 2% to 3% of loan amount |
Bajaj Finserv | 18.00% | Upto 2% of loan amount |
United Bank of India | 13.00% | 1.15% |
Corporation Bank | 13.55% | 1.5%, Min Rs. 500 |
Syndicate Bank | 12.65% | 0.5%, Min Rs. 500 |
Bank of Baroda | 14.10% | Upto 1.00% |
Type | Documents Accepted |
Income proof | Balance Sheet and Profit & Loss Account audited by an Auditor with Auditor's report. |
Other documents | Partnership Deed in the case of Partnership Firm |
Articles of Association, Memorandum of Association, and Board Resolution as per the format provided by the lender in the case of a Company. | |
PAN Card of Partnership Firm/Company | |
National and State Permit if finance is availed for a commercial vehicle. | |
Photo ID proof of the promoters | PAN Card, Passport, Voter's ID Card, Driving Licence, etc. |
Proof of address of the promoters | Aadhaar Card, Voter's ID Card, Driving Licence, Utility Bills, etc. |
Proof of business | GST Registration, Trade Licence, Registration under Shop Act, Drug Licence, etc. |
The following are the common eligibility criteria for a Business Loan: