RBL Bank

RBL Bank Business Loan

Years

Apply RBL Bank Business Loan

About RBL Bank Business Loan

Formerly known as Ratnakar Bank Ltd, RBL Bank is one of the fastest growing banks in the private sector in India. It has an extensive network of 324 branches and 993 business correspondent branches spread across 21 states and union territories in India. RBL Bank is listed on the Bombay Stock Exchange and National Stock Exchange. The bank works with a clear mission to understand customer needs and provides the best possible services through its dedicated employees. The bank is continually performing well in the financial sector. KPMG and Business Today studies rate RBL Bank as India's best bank in the mid-sized bank segment.

RBL Bank offers specialised services to its customers in six business verticals such as Branch and Business Banking, Commercial Banking, Corporate & Institutional Banking, Development Banking and Financial Inclusion, Retail Assets, and Treasury & Financial Markets Operations. The bank places great emphasis on Business Loans by providing an exotic range of business financing for an array of purposes, such as meeting working capital requirements and other business commitments. RBL Bank also specialises in export finance by providing multiple types of pre-shipment and post-shipment credit facilities at attractive rates of interest.

Why Choose RBL Bank Business Loan?

Any business entity will appreciate timely financial assistance. RBL Bank manages an excellent credit portfolio to ensure timely and adequate finance to business entities. Apart from offering attractive rates of interest, the bank has convenient loan repayment options. RBL Bank has specific Business Loan products that do not require any collateral.

RBL Bank offers short-term Business Loans as well as cash credit facilities to finance your working capital requirements. Availing a Business Loan from RBL Bank enables the business establishment to concentrate on their business without worrying about meeting financial needs.

RBL Bank Business Loan - Features and Benefits

RBL Bank provides a range of Business Loan facilities with attractive features and benefits:

  • RBL Bank offers working capital finance in the form of cash credit facilities
  • RBL Bank provides ideal banking solutions for short-term business finance requirements
  • Business Loans are available from 10 Lakhs to 35 Lakhs
  • Such loans have convenient repayment tenures between 12 and 36 months
  • These Business Loans do not have stipulations for providing collateral
  • RBL Bank Business Loans have easy eligibility criteria
  • The bank has a simple documentation procedure
  • Export credit facilities are also available in the form of pre-shipment and post-shipment finance
  • The bank offers non-fund based facilities like Buyer's credit and Letter of Credit facilities to eligible borrowers.
  • Other non-fund based facilities include bank guarantees to meet financial obligations and performance.
  • RBL Bank offers competitive interest rates, commissions, and other charges
  • Business Loans up to a maximum of 10 Crores are also available against mortgage of property

RBL Bank Business Loan Interest Rates

The rate of interest charged by RBL Bank depends on its MCLR for 6 months (6M). The MCLR-6M w.e.f. 22 May 2019 is 9.90%.

Below are the interest rates of various Business Loan schemes offered by RBL Bank:

Small Business Loans or Self-employment Loans

Amount classification

Rate of Interest

Below 5 lakhs

24%

Proprietorship and partnership firms - 5 Lakhs and above

23%

Private limited and closely help public limited companies - 5 Lakhs and above

22%

Merchant Cash Advance (MCA) - below 5 Lakhs

23%

MCA - 5 Lakhs to up to 15 lakhs

22%

Business Loans

Category of borrower

Interest Rate

Proprietorship concerns

20%

Partnership and closely held public limited companies

19.50%

Private limited companies

19%

Business Loan ABB Surrogate

20%

Business Loan GST Surrogate

20%

Business Loan OD Surrogate

20%

Business Loan MCA greater than 15 lakhs

20%

Working Capital Finance

All limits and loan types

MCLR-6M + (0.5% to 4%): 9.95% to 13.90%

MSME Loans
Amount Rate of Interest

Up to 5 Lakhs

29 %

More than 5 Lakhs and up to 10 Lakhs

25%

Secured Loans between 10 Lakhs and 20 Lakhs

24%

Women beneficiaries get the benefit of 2% in the interest rate at every stage

MSE - SW Loans up to 10 Lakhs

Up to 2.50 Lakhs

29%

More than 2.50 Lakhs and up to 5 lakhs

27%

Up to 10 lakhs

25%

Women beneficiaries get the benefit of 2% in the interest rate at every stage

MSE Loans - Plant and Machinery

Up to 5 Lakhs

29%

More than 5 Lakhs and up to 10 Lakhs

29%

Women beneficiaries get the benefit of 2% in the interest rate at every stage

Secured Loans - Liquid Collateral and Property

Up to 5 Lakhs

27%

Up to 10 Lakhs

24%

Up to 25 Lakhs

19%

Women beneficiaries get the benefit of 2% in the interest rate at every stage

Types of RBL Bank Business Loans

RBL Bank offers various kinds of Business Loans such as working capital finance, short-term finance for procuring business assets, export finance, and loan against property for meeting business requirements.

Business Loan without Collateral  -  Short Term

Purpose

To meet short-term business requirements and procure fixed assets

Features

  • Loans available from 10 Lakhs to 35 Lakhs
  • Repayment tenure ranging between 12 and 36 months
  • No stipulation of collateral for this Business Loan product

Eligibility Criteria

  • The minimum age of the Business Loan applicant should be 27 years
  • The maximum age at maturity of the loan should not exceed 65 years
  • Self-employed individuals/ professionals, sole proprietorship concerns, partnership firms, private and closely held public limited companies engaged in profitable business for the last three years are eligible.
  • A minimum requirement of 5 years experience in the same line of business with 3 years of establishment and operation in the same city.
  • In the case of self-employed professionals, a minimum of 4 years of post-qualification experience is necessary.
  • The minimum annual business turnover should be 1 Crore
  • In the case of Professionals or service sector, the annual gross receipts should be a minimum of 60 Lakhs.
  • Applicants should either own a residence or office premises in their name or jointly with family members. Alternatively, they should reside in residence owned by an immediate family member.

Working Capital Finance

Purpose

To take care of the working capital requirements of the business

Features

  • The facility is in the form of cash credit or overdraft to support day to day operations.
  • Export credit available to eligible exporters in the form of pre-shipment and post-shipment credit facilities.
  • Non-fund based facilities like Buyer's credit, letter of credit, and bank guarantees are also available.

Eligibility Criteria

The eligibility criteria for working capital finance facility are the same as described above for Business Loans. Besides, the business should satisfy the following criteria:

  • A minimum track record of 3 years in the same line of business
  • Cash profit along with a positive net worth for the previous 2 years

Documents

  • KYC documents and business financials are similar for all facilities
  • Interim performance should be supported by a copy of VAT/Service tax returns/GST returns.
  • These loans are available against security. Therefore, security related documents are necessary.

Business Loan against Property

Purpose

To meet business requirements, short-term or long-term

Features

  • Loans available up to 10 Crores
  • Repayment tenure extends up to 180 months
  • Residential and commercial property accepted as collateral
  • Maximum loan up to 80% of property value
  • Fixed rate of interest for the initial 3 years
  • Minimum documentation, faster approval, and attractive interest rates

Eligibility Criteria

  • Loans against property are available to Indian residents alone
  • Self-employed individual/professionals, sole proprietorship concerns, partnership firms, and private limited companies including closely help public limited companies.
  • Minimum age requirement is 23 years at the time of sanction
  • The borrower should not be more than 65 years of age at the maturity of the loan
  • Minimum net profit as per latest ITR should be 1,50,000

Business Overdraft against Property

Purpose

Same as Business Loans against property

Features

  • Drop-line overdraft facility up to a maximum of 5 Crores
  • Overdraft tenure is a maximum of 10 years
  • Interest charged on the utilised amount
  • Other features are same as that of Business Loan against property

Eligibility Criteria

Same as that of Business Loans against property

RBL Bank Business Loan Eligibility

Below are the criteria that are to be met to avail a Business Loan from RBL Bank:

  • Self-employed individuals, professionals, sole proprietorships, partnership firms, and private limited companies (also closely-held public ltd. companies), with a profitable business for the last 3 years are eligible for the loan.
  • Applicant should be minimum 27 years of age at the time of application and up to 65 years at loan maturity.
  • Applicants must have a minimum 5 years of experience in the same business line with minimum 3 years of business establishment and operation in the same city.
  • For self-employed professionals, at least 4 years of experience post-qualification is necessary
  • Business of the business owners must have a turnover of minimum 1 Crore
  • Professional / Service Sector applicants must have gross receipts of at least  60 Lakhs
  • Applicant must own residence or office in their name or jointly with their family members or reside in a residence owned by their immediate family member.

Factors That Affect Eligibility for RBL Bank Business Loan

  • Age of the borrower
  • Business performance
  • Credit rating

Tips to Increase RBL Bank Business Loan Eligibility

  • Maintain a good credit rating by maintaining an impeccable repayment record
  • Do not apply for many loans as that could affect your credit rating
  • It is also necessary to maintain a positive net worth

Documents Required RBL Bank Business Loan

Providing appropriate documents is essential for the processing of RBL Bank Business Loan.

Following is the list of documents to apply for RBL Bank Business Loan:

Nature of documents Applicable documents

KYC documents

PAN Card for individual or partnership firm or company

Identity proof

Any one document amongst Voter ID, Passport, Driving licence, and Aadhaar card

Address proof

Any one document such as Voter ID, Driving licence, telephone or electricity bill, passport, registered lease deed, sale agreement, or bank statement.

Ownership document

Proof of ownership of residence or business premises in the name of the applicant or jointly with family members

Proof of business continuity

Any one document of the following dated at least 5 years old: Partnership deed, Certificate of incorporation, Sales Tax challans, IT returns, bank statement, or Shop & Establishment certificate

End-use certification

The business entity should submit a letter certifying the end use of funds on their business letterhead.

Photographs

Passport size recent photographs of all applicants and co-applicants

Here is a list of financial documents depending on the classification of the borrower:

Category of borrower Necessary documents

Sole proprietors or self-employed individuals

Latest audited ITR & last 2 years' financials such as Balance Sheet, P&L A/c, and Computation of Income with all schedules.

6 months banks statement from the borrower's primary bank account.

3 months bank statement of all other bank accounts listed in the balance sheet.

Self-employed professionals

Financial statements such as Balance Sheet and P&L statements for the previous 2 years along with ITR and computation of income statement.

Bank statement for the primary account of the borrower for 6 months and 3-month statement for other accounts mentioned the balance sheet.

Professional Qualification certificate

Partnership firms and Private Limited Companies

Latest audited ITR along with company financial statements for the last 2 years.

Computation of income with all the necessary schedules

Partnership deed and partnership authority letter in the case of partnership firms

MOA and AOA along with Board Resolution for companies

Certificate of Incorporation for companies

Latest shareholding patterns for private and public limited companies

Why Apply for RBL Bank Business Loan on MyMoneyMantra?

Applying for RBL Bank Business Loan on the bank's official website is easy. However, you get additional benefits when you use MyMoneyMantra to apply for an RBL Business Loan.

  • We have a simple procedure that directs you to the official webpage of RBL Bank for applying for a Business Loan.
  • Our team of dedicated experts help you at each step of the loan application process
  • You get an opportunity to compare similar products of different banks before selecting the appropriate option.
  • We help you with the documentation process by collecting them from your doorstep and submitting it to the bank.

How to Apply for RBL Bank Business Loan?

You can apply for RBL Bank Business Loans through the following ways:

Online application: Applying for RBL Bank Business Loan online is the easiest option. The procedure involves the applicants to access the official website of RBL Bank and select the 'Apply Now' option on the loans product page. You have to submit your details following which the bank representative will communicate with you to obtain the necessary documents and proceed with the loan processing.

Through authorised marketing agents: RBL Bank has a well-orchestrated team of authorised marketing agents in almost every city or town where have a branch. It is possible to apply for a Business Loan through these agents.

Through MyMoneyMantra: Applying for RBL Bank Business Loan through MyMoneyMantra is a viable option. Our representatives guide you through the entire loan application process and help you with compiling and submitting the documents.  

How to Apply for RBL Bank Business Loan on MyMoneyMantra?

  • Access our official website and select the Business Loan tab for applying for a Business Loan
  • Submit the details such as your name, city of residence and business, loan amount, email address, and mobile number.
  • We send you an OTP at the registered mobile number to ensure the genuineness of the application. Enter the OTP at the requisite location to access the best matching Business Loan offers.
  • Our customer service executives are available to help you with the documentation formalities. We support you with the application procedure by explaining the loan procedure.

Other Products by RBL Bank

Apart from Business Loans discussed above, RBL Bank offers the following additional products and services:

  • Personal Loans
  • Home Loans
  • Car Loans
  • Education Loans
  • Credit Cards
  • Accounts
  • Fixed Deposits
  • Insurance
  • Investment Services
  • Demat
  • Forex Services
  • NRI Accounts
  • NRI Deposits
  • Business Banking

How to Calculate RBL Business Loan EMI?

Usually, RBL Bank Business Loans are repayable between 12 and 36 months. It is, therefore, advisable to determine the amount of EMI that you could afford before proceeding with the RBL Bank Business Loan. EMI calculators can help you to calculate your probable EMI.

MyMoneyMantra has an EMI calculator on its website that can prove extremely useful to know your EMI.

Visit our official website and access the EMI Calculator on the Financial Tools option on the home page.

Enter the loan amount, rate of interest, and repayment tenure. Click on the Calculate button to get a detailed chart of your repayment schedule. It is ideal for determining your loan EMI.

There are three other calculators available under Financial Tools that can prove extremely useful to you.

  • Balance Transfer Calculator: The Balance Transfer calculator is useful to calculate the balance payable by you if you wish to go for a balance transfer option.
  • Prepayment Amount Calculator: This calculator determines the amount payable in case you decide to foreclose your loan.
  • How soon can I pay off Loan: This calculator makes it easy for you to determine the period required for paying off your loan if you wish to make partial prepayments.

Change in Business Loan EMI with a Change in Prepayment

RBL Bank permits foreclosure or part-payment of its Business Loans subject to specific conditions. It does not allow foreclosure/prepayment until the payment of a minimum of 6 EMIs. Making a part payment of Business Loan results in reducing the overall loan liability for the business concern. They can opt to continue paying the same EMI in the future so that they end up closing the loan ahead of schedule. Alternatively, RBL Bank offers to recalculate the EMI after the part-payment, thereby reducing the monthly outgo of the company.  

RBL Bank Business Loans Charges

Apart from the interest rate, the following charges are also associated with the RBL Bank Business Loan:

Business Loan & Small Business Loans

Types of charges Quantum

Processing Fee

 

  • 3% of the loan amount
  • Nil for Small Business Loan below 5 Lakhs

Late EMI payment

2% additional interest p.m. on overdue EMI amount

Issuance of duplicate interest and principal certificate

250 per instance

Cheque swapping

250 per instance

Cheque bounce

250 per instance

NACH bounce

50 per instance

CIBIL report

50 per instance

Foreclosure charges (for EMI based loans)

  • Not allowed until repayment of 6 EMIs
  • After paying 7-18 EMIs: 5% of principal outstanding
  • After paying more than 18 EMIs: 3% of principal outstanding

Foreclosure charges (for EDI based loans)

  • No pre-payment or foreclosure allowed until the payment of 180 EDIs
  • After 181-550 EDIs are paid: 5% of Principal outstanding
  • After more than 550 EDIs are paid: 3% of Principal outstanding

Documentation charges

7,000 for Small Business Loan below 5 Lakhs

Working Capital Finance

Types of charges Quantum

Processing Fee

 

  • 1.25% of the loan amount + applicable taxes
  • Non-refundable fee of 7,500 + applicable taxes has to be paid at login stage

Charges for expiry of limits or non-renewal of limits

Additional 2% over existing interest rate

Limit excess or overdrawn charges

Additional 2% over existing interest rate

Non submission of Stock Statement

Additional 2% over existing interest rate

Stock inspection

13,000 + applicable taxes

Overdue exceptions

13,000 + Applicable taxes

Commitment charges

 

If the quarterly average utilisation is less than 25% of the limit fixed for the year: 2% of the shortfall in utilisation

Takeover/ Foreclosure/ Part Prepayment charges

  • 4% of the balance outstanding for Term Loan
  • 4% of the sanctioned limit for Limits (CC/OD)

MSME Loans

Types of charges Quantum

Processing Fee

 

  • Nil for loans up to 5 Lakhs
  • For loans above 5 Lakhs and up to 10 Lakhs: 2% of the loan amount
  • Secured Loans of 10 Lakhs and above: 2% of the loan amount

Late EMI payment

2% additional interest p.m. on overdue EMI amount

Issuance of duplicate interest and principal certificate

250 per instance

Cheque swapping

250 per instance

Cheque bounce

250 per instance

Issuance of duplicate NOC/ no due certificate

250 per instance

CIBIL report

50 per instance

Documentation fees for MSE Loans up to 5 Lakhs

7,500

Part Pre-payment charges for secured loans

  • Nil up to 15% of outstanding principal in 1-year
  • Prepayment of above 15% of outstanding amount: 2% of the amount paid

Foreclosure charges

 

MSME Loans: 3% of the principal outstanding

Women Loans: 1% of the principal outstanding

MSME - SW Loans

Types of charges Quantum

Processing Fee

 

  • Nil for loans up to 5 Lakhs
  • Secured Loans (obtained against Liquid Collateral and Property) & MSE Loans (for Plant & Machinery): 2% of the loan amount for loans 5 Lakhs and above

Late EMI payment

2% additional interest p.m. on overdue EMI amount

Issuance of duplicate interest and principal certificate

250 per instance

Cheque swapping

250 per instance

Cheque bounce

350 per instance

Issuance of duplicate NOC/ no due certificate

250 per instance

CIBIL report

50 per instance

Documentation fees

MSE SW Loans:

  • For 0.75 Lakhs to 1.25 Lakhs: 3,500
  • For 1.26 Lakhs to 2.50 Lakhs: 6,000
  • For 2.51 Lakhs to 5 Lakhs: 10,000

MSE Loans - Plant & Machinery:

  • For 1.26 Lakhs to 2.50 Lakhs: 6,000
  • For 2.51 Lakhs to 5 Lakhs: 10,000

Secured Loans:

  • For 2.51 Lakhs to 5 Lakhs: 10,000

Part pre-payment charges for secured loans

  • Nil for prepayment of up to 15% of outstanding principal in 1-year
  • For prepayment of above 15% of outstanding: 2% of the amount paid

Foreclosure charges

  • MSME - SW Loans: 3% of principal outstanding
  • Women Loans: 1% of principal outstanding

RBL Bank Business Loan Customer Care

RBL Bank aims to provide customer service of the highest order. It seeks feedback from its customers about various services. Customers can provide their feedback, suggestions, and register complaints online using this option. The option requires customers to fill up the form online and submit it for addressing their issues.

Customers can also make banking enquiries at 022-61156300 or 1800-123-8040 (Toll-Free)

OR

Email at customercare@rblbank.com

RBL Bank Business Loan FAQs

How much loan can I avail from RBL Bank?

The amount of loan depends on the purpose of the loan and your annual business turnover projections. RBL Bank has Business Loan products that allow you to borrow between 10 Lakhs and 35 Lakhs. The Business Loan also depends on your repayment capacity and the financial documents you submit to the bank.

What is the repayment tenure? What are the repayment options?

The Business Loan repayment tenure at RBL Bank is 12 to 36 months. It can be paid in easy EMIs. RBL Bank accepts post-dated cheques for repayment of EMIs. It is also possible to use the ECS facility for repaying your Business Loans. If you have a current account with RBL Bank, it is advisable to register 'standing instructions' to debit your account with the EMI on the specific date.

Do I need to provide any security to RBL Bank for a Business Loan?

RBL Bank offers unsecured Business Loans that do not require any security, primary or collateral. However, if you wish to avail a Business Loan against Property, you have to mortgage the property with RBL Bank.

Are there any processing charges for RBL Bank Business Loan?

Yes, processing charges of 1.5% to 3% are payable on RBL Bank Business Loans depending on the loan type, loan amount, and customer profile.

Can I make a prepayment of my Business Loan with RBL Bank?

RBL Bank does not allow any foreclosure of Business Loans before completion of six months of the loan. After six months, borrowers can foreclose the loan subject to payment of foreclosure charges.

Does it benefit my business if I maintain a current or savings account along with my RBL Bank Business Loan?

Yes, it facilitates the repayment of your Business Loan instalments. You can register the standing instructions with the bank to debit your current or savings account for the amount of loan instalment every month.  

Does RBL Bank approve Business Loans under Government schemes for MSME?

RBL Bank is a member-lending institution under the Credit Guarantee Trust for Small and Micro Enterprises. Hence, RBL Bank Ltd can finance in the manufacturing, trading and service sector under the CGTMSE umbrella. The only condition is that RBL Bank should not insist on collaterals or personal guarantee while providing finance to borrowers under CGTMSE.

How do I benefit when I apply for RBL Bank Business Loan from MyMoneyMantra?

MyMoneyMantra facilitates the easy application of Business Loan with RBL Bank. The advantage of using our services is that you benefit from the expert guidance provided by our team. We provide facilities whereby you can compare Business Loans offered by other banks and financial institutions before choosing RBL Bank. We also help in submitting the required documents to the bank for approval of the loan facility.

How do I contact MyMoneyMantra for RBL Bank Business Loan Query?

Contacting MyMoneyMantra for RBL Bank Business Loan is easy.

  • Use our portal to apply for RBL Bank Business Loan
  • Contact 1800-104-4004 and speak to our dedicated customer service executives who can help you out with the loan application process.
  • Drop an email to contactus@mymoneymantra.com. We will respond to your query and resolve it.

How do I benefit from prepaying my RBL Bank Business Loan?

When you prepay your RBL Business Loan, you save on the interest component. Use our Business Loan prepayment calculator to determine the prepayment amount. 

Latest News and Snippets - RBL Bank

08.05.2019: RBL Bank signs MOU with Government e-Marketplace (GeM) for providing banking solutions

By signing this MOU, RBL Bank will offer a variety of services that include the transfer of funds through Government Pool Accounts. It will also advise Bank Guarantees and Earnest Money Deposit to registered users on the GeM portal. This portal is a cashless and paperless portal to enable the creation of an efficient procurement system for government entities.

10.01.2019: RBL Bank signs MOU with NASSCOM to offer customised credit facilities to MSMEs

Intending to boost India's MSME ecosystem, RBL Bank and NASSCOM have entered into an MOU, whereby they will provide customised credit solutions in the IT sector. The MOU states that the NASSCOM and RBL Bank will collaborate to conduct joint events, have knowledge sharing sessions, and engage continuously in various matters in ten locations in India.

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