RBL Bank Business Loan Details

Rate of InterestStarting at 9.75% p.a.
Minimum loan amountRs. 10 Lakhs
Maximum loan amountRs. 35 Lakhs
Repayment tenureUp to 36 months
Processing feeUp to 3% + applicable taxes
Prepayment charges Up to 5% + GST
Age27 - 65 years  
Minimum business turnoverRs. 1 Crore

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

This collateral-free loan is offered to meet short-term business requirements and procure fixed assets.

  • Loans available from Rs. 10 Lakhs to Rs. 35 Lakhs.
  • Repayment tenure ranging between 12 and 36 months.

·         No stipulation of collateral for this Business Loan product.

 Working Capital Finance

This loan is offered to take care of the working capital requirements of the business.

  • 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.

 Business Loan against Property

This loan is offered against the mortgage of property to meet short-term or long-term business requirements.

  • Loans available up to Rs. 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.

 Business Overdraft against Property

This loan is offered as an overdraft facility against the mortgage of property to meet short-term or long-term business requirements.

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

Features of RBL Bank Business Loan

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

  • RBL Bank offers working capital finance in the form of cash credit facilities.
  • The bank provides ideal banking solutions for short-term business finance requirements.
  • Business Loans are available from Rs. 10 Lakhs to Rs. 35 Lakhs.
  • Such loans have convenient repayment tenures between 12 and 36 months.
  • 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.
  • Business Loans up to a maximum of Rs. 10 Crores are also available against mortgage of property.

Why Choose RBL Bank Business Loan?

Business Loans offered by RBL Bank come loaded with the following benefits:

  • Women borrowers get special concession on interest rates.
  • RBL Business Loans do not have stipulations for providing collateral.
  • RBL Bank Business Loans have easy eligibility criteria.
  • The bank has a simple documentation procedure.
  • RBL Bank offers competitive interest rates and charges.
  • The bank offers a variety of loans to suit every need.

RBL Bank Business Loan EMI Calculation

It is advisable to determine the amount of EMI that you could afford before proceeding with the RBL Bank Business Loan. MyMoneyMantra’s Business Loan EMI Calculator can help you to calculate your probable EMI. Visit our official website and access the Business Loan EMI Calculator on the Financial Tools option on the home page. Enter the loan amount, rate of interest, and repayment tenure to get a detailed chart of your repayment schedule.

Here is an example:

Loan amount to be availed: Rs. 30 Lakhs

Applicable interest rate: 9.75% p.a.

Tenure chosen: 3 years

In this case, your monthly EMI would be Rs. 96,450, the total interest would be Rs. 4,72,194 and the total amount that the borrower needs to pay to the bank would be Rs. 34,72,194.

The complete amortization schedule table

YearOpening BalanceAmount Paid (EMI*12)

Interest paid during

the year

Principal paid during

the year

Closing Balance
1Rs. 30,00,000Rs. 5,78,699Rs. 1,37,370Rs. 4,41,329Rs. 25,58,671
2Rs. 25,58,671Rs. 11,57,398Rs. 2,07,778Rs. 9,49,620Rs. 16,09,052
3Rs. 16,09,052Rs. 11,57,398Rs. 1,10,939Rs. 10,46,459Rs. 5,62,592
4Rs. 5,62,592Rs. 5,78,699Rs. 16,107Rs. 5,62,592Rs. 0

RBL Bank Business Loan Documents Required

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:

  • KYC documents: PAN Card for individual or partnership firm or company.
  • Identity proof: Any one document amongst Voter ID, Passport, Driving licence, and Aadhar 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:

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 bank 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 statements.
  • Bank statements for the primary account of the borrower for 6 months and 3-month statements 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.

RBL Bank Business Loan Eligibility

Business Loan without Collateral  -  Short Term

  • 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 Rs. 1 Crore
  • In the case of Professionals or service sector, the annual gross receipts should be a minimum of Rs. 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

In addition to the eligibility criteria for Business Loan without collateral, 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.

Business Loan against Property/ Business Overdraft against Property

  • 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 Rs. 1,50,000.

RBL Bank Business Loan 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 chargesQuantum

Processing fee

 

Up to 3% of the loan amount
Late EMI payment2% p.m.
Issuance of duplicate interest & principal certificateRs. 250 per instance
Cheque swapping/bounceRs. 250 per instance
NACH bounceRs. 50 per instance
CIBIL reportRs. 50 per instance
Foreclosure charges3% - 5% of principal outstanding
Documentation chargesRs. 7,000 for Small Business Loan below Rs. 5 Lakhs

 Working Capital Finance

Types of chargesQuantum

Processing fee

 

1.25% of the loan amount + applicable taxes. Non-refundable fee of Rs. 7,500 + applicable taxes to be paid at login stage.
Charges for expiry of limits or non-renewal of limits/ Limit excess or overdrawn charges/ Non submission of Stock Statement2% over existing interest rate
Stock inspection/ Overdue exceptionsRs. 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 charges4% of the balance outstanding for Term Loan & 4% of the sanctioned limit for Limits (CC/OD)

MSME Loans

Types of chargesQuantum

Processing fee

 

Up to 2% of the loan amount
Late EMI payment2%
Issuance of duplicate interest and principal certificateRs. 250 per instance
Cheque swapping/ bounceRs. 250 per instance
Issuance of duplicate NOC/ no due certificateRs. 250 per instance
CIBIL reportRs. 50 per instance
Documentation fees for MSE Loans up to Rs. 5 LakhsRs. 7,500
Part Pre-payment charges for secured loansUp to 2% of the amount paid

Foreclosure charges

 

3% of the principal outstanding for MSME Loans & 1% of the principal outstanding Women Loans

MSME - SW Loans

Types of chargesQuantum

Processing fee

 

Up to 2% of the loan amount
Late EMI payment2%
Issuance of duplicate interest and principal certificateRs. 250 per instance
Cheque swappingRs. 250 per instance
Cheque bounceRs. 350 per instance
Issuance of duplicate NOC/ no due certificateRs. 250 per instance
CIBIL reportRs. 50 per instance
Documentation feesUp to Rs. 10,000
Part pre-payment charges for secured loansUp to 2% of the amount paid
Foreclosure charges3% of principal outstanding for MSME - SW Loans & 1% of principal outstanding Women Loans

RBL Bank Business Loan Prepayment

Prepayment is not allowed until repayment of 6 EMIs. After paying 7 to 18 EMIs, the charges applicable are 5% of principal outstanding. Closing the loan after paying more than 18 EMIs will attract charges of 3% of principal outstanding.

How to Apply for RBL Bank Business Loan?

  • 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.
  • Accept the terms & conditions and click on the Next button.
  • Enter the OTP received on your mobile number.
  • Compare all the options displayed on your screen.
  • Select RBL Bank as your lending partner and click on the Apply Now button.
  • Note down the Application Number for future reference.
  • 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.

RBL Bank Business Loan Interest Rates & Processing Fees

RBL bank business loan interest rates and processing charges are as below:

Small Business Loans

  • Rate of interest: 20% - 26%
  • Processing fee: 3% of loan amount

Business Loans

  • Rate of interest: 17.50% - 21%
  • Processing fee: 2% - 3% of loan amount

Working Capital Finance 

  • Rate of interest: 9.75% - 14%
  • Processing fee: 1.25% of loan amount

Unsecured MSM Loans Up to Rs. 5 Lakhs

  • Rate of interest: 24% - 26%
  • Processing fee: Not applicable

MSE Loans

  • Rate of interest: 21% - 25%
  • Processing fee: Up to 2% of loan amount

Secured Loans - Liquid collateral & Property

  • Rate of interest: 14% - 21%
  • Processing fee: Up to 2.25% of loan amount

RBL Bank Business Loan Customer Care

You can contact on the below-mentioned numbers to speak to the RBL Bank representatives:

1800-419-5959 OR 1800-419-6969

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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 Rs. 10 Lakhs and Rs. 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?

The Business Loan repayment tenure at RBL Bank is 12 to 36 months.

What are the repayment options?

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 up to 3% plus applicable taxes 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 6 months of the loan. After 6 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.