This Diwali Expand Your Online Venture with Best Business Loan

Updated on: 14 Dec 2023 // 5 min read // Business Loans
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Ahead of Diwali, the largest festival season in the country, banks, and NBFCs are all geared up to offer attractive interest rates and credit offers and amuse prospective customers. Besides the government of India has also announced to hold loan melas (camps) to educate & distribute loans to small & medium enterprises in 400 districts across the country.

With the rapid improvement in technology and infrastructure, the number of internet users in India is consistently on the rise. As per several studies, internet users in India spend most of their time on the internet accessing various social media platforms. Closely following in the second position is online shopping. Yes, Indian customers have adopted online shopping in a big way, and the e-commerce industry in India has become a multi-billion dollar industry. An increasing number of businesses in India are now looking to establish an online presence to attract more customers.

Whether you have recently started a new business, or already have set up your small business, you must also prepare to take your business online. The number of benefits on offer is immense, and with your competitors already raking in big numbers, you can not afford to delay the decision further. If the paucity of funds is stopping you, then you need not worry. You can easily avail a business loan from a financial institution in India and take your venture online.

More about Business Loans

Business Loan collectively denotes a wide range of credit facilities offered by financial institutions to business enterprises. As different businesses have different requirements, lenders offer a wide range of credit facilities to them such as term loan, overdraft limit, credit card limit, working capital loans, etc.

Following are some of the key features of top Business Loans in India: –

  • A Business Loan can only be used for business-related purposes. To ensure the usage of the funds as agreed, financial institutions might ask businesses to inform them regarding the intended usage of the funds.
  • Depending on the type of requirement and amount sought, Business Loans could be secured or unsecured.
  • Any asset acquired with a Business Loan would automatically be hypothecated to the lender, who will create a registered charge over it.
  • Business Loans are available to new as well as established businesses as well; depending on the credit profile and CIBIL score of the business.
  • Business Loans are to be repaid in EMIs only, making the repayments easier to manage.

Why should you take a Business Loan now?

Expanding a retail business online may involve a lot of time, people, and resources, including money. If you do not have adequate reserves or savings in your business, then money could impede your ambition. In such a situation, availing a Business Loan now when banks & NBFCs are poring festival discounts could be the best decision for you. Besides the festival offer, you can enjoy other benefits, such as:

  • Extended repayment tenor: The repayment tenor for business credit is usually 60 months for Unsecured Business Loans and 180 months for Secured Business Loans but can be extended by lenders on a case-to-case basis.
  • High-value loans: There is no limit on the maximum amount available as a Business Loan; it depends entirely on the credit profile of the borrower and policies of the lender.
  • Attractive interest rates: Business Loan Interest Rates start from as low as 11.70% p.a., making them an ideal option for expanding your venture.
  • Top-up facility: If you maintain a sound repayment track and register profits in your business, you can avail a top-up facility against your Business Loan as well. Many lenders offer the facility of Balance Transfer too.
  • Government Support: To encourage entrepreneurship, the Indian government is offering Business Loans at subsidised interest rates and with easy approvals. Mudra Loan, CGTMSE Scheme, Make in India, Stand-Up India schemes are some of the initiatives taken by the government.
  • Tax Saving Opportunities: When you avail a Business Loan, you can claim the interest component of the loan as an expense and avail tax benefits against it. Moreover, if you use the loan to acquire any assets, you can claim depreciation benefits, reducing your tax liability significantly.

Diwali is the time to embrace & worship Goddess Laxmi & there is no better time to seek her blessings. 

Best Business Loans in India

With multiple financial institutions in the fray, it can be confusing for you to determine the best Business Loan for your business. Here is a list of the best Business Loans in India which you can consider for your requirements:

1. SBI Business Loan:

“Simplified Small Business Loan” is the most popular SBI Business Loan for small businesses in the market today. The maximum amount available herein is Rs. 25 Lakh and the loan is offered in the form of Drop-line Overdraft Facility. Borrowers must offer collateral of at least 40% of the loan amount. The interest rates are floating, and the maximum repayment tenor provided is 60 months.

2. HDFC Business Loan:

HDFC Business Loan up to Rs. 50 Lakh is available for business owners without any need to offer collateral. The interest rate starts from as low as 15.75% per annum, while the maximum repayment tenor is 48 months. This facility can be availed as a term loan or a drop-line overdraft facility. The processing fee starts from 0.99% of the loan amount.

3. Bajaj Finserv Business Loan:

Bajaj Finserv offers unsecured business loans for up to Rs. 30 Lakh for small business owners. The money can be used to finance any business-related requirement. Attractive interest rates starting from 18% per annum and extended repayment tenor of up to 60 months make this an ideal option for short and medium-term business requirements.

4. Axis Bank Business Loan:

Axis Bank offers unsecured business loans up to Rs. 50 Lakh for small business owners. The interest rates are disclosed at the time of application only as they are based on factors such as business profile, risk assessment, nature of the requirement, etc. The maximum repayment tenor available is 48 months with the provision of NIL foreclosure charges.

5. Kotak Mahindra Bank Business Loan:

Kotak Mahindra Bank offers business loans up to Rs. 75 Lakh without any collateral. The maximum repayment tenor available is 48 months, and the applications are sanctioned within 72 hours. Interest rates are disclosed at the time of application only, while the processing charges are 2% of the loan amount.

With a host of benefits on offer, availing a Business Loan for establishing your online presence could be a game-changing decision for you. However, it is important to mention here that you must exercise due diligence and do proper research before availing of this facility.