With a rapidly growing economy and the booming start-up culture in the country, many first-generation entrepreneurs are foraying into the world of business in India. Whether expanding your existing business operations or establishing a new entity, the biggest challenge for any entrepreneur is arranging for the required funds at the appropriate time.
Earlier, entrepreneurs had limited access to the funding options and in most cases, had to resort to their sources, which limited their growth potential. Thankfully, in the last few years, several new types of Business Loans have been made available to the businesses by various banks and financial institutions in India.
If you are also standing at the crossroads and looking for an ideal source of funding for your entrepreneurial ambitions, here is a list of 10 best banks and NBFCs to Apply for a Business Loan in India.
ICICI Bank offers a wide range of Business Loans to fuel the funding needs of any business organisation. With its best in class operations, ICICI Bank ensures quick and hassle-free processing of the loans. The quick processing, minimal documentation, and competitive interest rates make it a viable option in the market. ICICI Bank offers Business Loans in India starting from as low as Rs. 1 Lakh to as high as Rs. 10 Crore, with interest rates starting from as low as 12.9% per annum with the maximum loan tenor of up to 60 months. The processing fee charged is subject to a maximum of 2% + GST as applicable.
Fullerton India is a Non-Banking Financial Company (NBFC) that offers financing solutions mainly emphasizing on Small and Medium Enterprises in India. With a network of 636 branches in India, Fullerton offers a wide range of Business Loans suitable for various business needs. Its quick processing and collateral-free offerings make it stand out from its competitors. Fullerton offers unsecured Business Loans starting from Rs. 10 Lakh and going up to Rs. 50 Lakh with attractive interest rates starting from 13 % and maximum repayment tenor of 48 months. The processing fee charged by Fullerton India is up to 6.5% of the loan amount + GST, as applicable.
HDFC Business Loan offers many benefits to business organisations. HDFC offers collateral-free loans with quick processing, minimal documentation, and fast disbursals to provide a great opportunity for entrepreneurs to fund their requirements at an attractive interest rate starting from 12.75% per annum. HDFC Bank offers unsecured Business Loans of up to Rs. 50 Lakh with a maximum repayment tenor of up to 48 months. The processing fee for HDFC Business Loan is up to 2.50% of the loan amount.
The merger of IDFC Bank and Capital First resulted in the forming of the IDFC First Bank. This bank offers multiple types of unsecured Business Loans for various operational needs. There is no need for collateral or security to obtain a Business Loan from IDFC Bank. Existing customers can also avail the Top-Up facility where they can borrow more money from the bank over and above the existing loan amount. IDFC Bank offers unsecured Business Loans of up to Rs. 75 Lakh with interest rates starting from 11.69% and with a loan tenor of between 12-60 months. The processing fee for IDFC Business Loan is up to 2.50% of the loan amount.
Kotak Mahindra Bank offers a wide range of collateral-free Business Loans. The application process is quick, easy, and hassle-free. Kotak Mahindra Bank sanctions Business Loans within 72 hours. It also offers Fund against Credit Card Receivables (FCCR) with a loan amount up to Rs. 3 Crore. Kotak Mahindra Bank provides unsecured Business Loans for up to Rs. 75 Lakh with interest rates ranging from 11.69% – 15% and come with a repayment tenor of up to 48 months. The processing fee for Kotak Mahindra Business Loan is up to 2% of the loan amount + GST as applicable.
Federal Bank offers Business Loans for qualified and licensed professionals at competitive interest rates. Professionals like Doctors, Chartered Accountants, Architects with a minimum of 4 years experience can avail quick Business Loans of up to Rs. 3 Crore with a longer repayment tenor of up to 84 months. Interest rates for Federal Bank Business Loans are linked to MCLR and vary according to the repayment tenor.
Tata Capital offers Unsecured Business Loans with flexible EMI options. The flexible business loans from Tata Capital meet all the different needs of your business and can be custom-built as per your business requirement. It offers Business Loans ranging from Rs. 5 Lakh to Rs. 50 Lakh with the rate of interest starting from 18% with a repayment tenor of up to 36 months. The processing fee for Tata Capital Business Loan can go up to 2.75% of the loan amount + GST.
SBI Business Loan like Smart Backed Asset Loan is offered for business purposes against mortgage of collateral. The loan amount could be used for various purposes like working capital, business expansion and purchase of assets. SBI Business Loans are available starting from Rs. 10 Lakh and go up to Rs. 20 crore at competitive interest rates that are linked to MCLR. The processing fee for SBI Asset-Backed Business Loan is 1% of the limit amount sanctioned.
Edelweiss Financial services provide secured and unsecured Business Loans offering financial solutions to business owners as well as small and micro-enterprises. A relationship manager dedicated to the customer will evaluate their funding needs and structure a customised funding solution for their business. Secured loans offered against the collateral of fixed assets range from Rs. 3.5 Lakh to Rs. 25 crore with a repayment tenor of up to 180 months with interest rate starting from 18% per annum. The processing fee might vary from up to 2% – 3.5% + GST as applicable.
Lendingkart Finance Ltd is a Non-Banking Financial Company (NBFC) providing financial solutions. They offer collateral-free Business Loan up to Rs. 1 crore within 72 hours at very attractive interest rates. The quick processing and minimum documentation offered by Lendingkart Finance Ltd makes it a viable option for many business owners.
With so many Business Loans in India available at your disposal cash lapses can no longer come in your way to achieve the desired business goals effectively and efficiently.
Also Read: Top 10 Small Business Loans in India
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