Top 5 Business Loans in India 2020

Business Loans is one of the best ways to improve the financing of various business needs. Some of the banks provide higher loans without any pre-approved offers and collateral. This is the amount that is paid with a certain rate of interest and within a given tenure of the loan. Want to expand your business or to start a new business according to your need, here I have listed the 5 Best Business Loans in India and their features. Scroll down and let's have a look.

SBI Business Loan

State Bank of India (SBI) offers Asset Backed Loan to firms involved in trading, manufacturing, and services. SBI is India's largest SME finance company providing a wide variety of financial products and services to more than 1.3 million SMEs across India.

• Minimum Loan Amount: Rs 10 Lakh
• Maximum Loan Amount: Rs 20 Crore
• Repayment Tenure: 5 years to 15 years
• Processing Fee: 1% of the loan amount, max up to Rs 10 Lakh
• Interest Rate: 9.05% - 16.30% (Linked to MCLR)

  

HDFC Business Loan

Business loan from HDFC Bank is fast, simple and also provides attractive offers to its customers. You can get EMI calculator on its official website in which you can calculate your EMI to pay for your Business Loan. Based on your eligibility you can get Business Loan up to Rs 5,000,000 which proves that the HDFC Business Loan is one of the best and ideal loans for you and your business. You can apply approve loan instantly with minimum documentation and paperwork.

• Interest Rate: 15.65% to 21.20% per annum
• Processing Fees & Charges: Up to 2.50% + GST as applicable
• Minimum Loan Amount: Rs 50,000
• Maximum Loan Amount: Rs 50 Lakhs
• Minimum Tenure Period: 1 year
• Maximum Tenure Period: 4 years

RBL Bank Business Loan

The loan is one of the widely known and a perfect solution when it comes to serve yourself for short-term finance and working capital requirements.

• Minimum Loan Amount- Rs 10 Lakh
• Maximum Loan Amount- 35 Lakh
• No security or collateral required to avail this loan
• Loan tenure option of 12 to 36 months
• Interest Rate- 16.25%
• Loan tenure ranges from Rs 9,085 to Rs 3,528

  

ICICI Bank Business Loan

ICICI Bank ranks among the top business loan providers in India.It provides attractive interest rates, offers and flexible tenure making it more beneficial to borrowers. Minimum interest rate and processing fee are one of the best features of the ICICI Bank Business Loan.

• Interest Rate: 16.49%
• Processing Fee & Charges: Up to 2% + GST as applicable
• Minimum Loan Amount: Rs 1 Lakh
• Maximum Loan Amount: Rs 40 Lakh
• Minimum Tenure Period: 1 year
• Maximum Tenure Period: 5 years

Axis Bank Business Loan

Axis bank provides business loans at competitive interest rates. The bank has different schemes depends on the eligibility pf the borrower which help to develop existing businesses as well as a start-up. The loan also provides flexible repayment options and tenure with minimum interest rates.

• Interest Rate: 16% onwards
• Processing Fees & Charges: Up to 1.25% + ST
• Minimum Loan Amount: Rs 50,000
• Maximum Loan Amount: Rs 50 lakhs
• Minimum Tenure Period: 1 year
• Maximum Tenure Period: 3 years

Impetus of Business Loans in India

To a business loan there are many purposes which of them are highlighted below:

• To expand your existing business or firm
• To start a new business to grow your lifestyle
• To expand the location of your business or to purchase the necessary equipment for your business
• To offer valuable products and services of your business to the customers
• The most important fact of business is to make a face value in the market and to build a strong customer satisfaction.

Features of Business Loan in India

Below pointed are the features you will get reap in a Business Loan:

• The rate of interest charged in a Business Loan fully depends on the profile and credit score of the individual.
• The repayment frequency in a business loan is yearly or monthly
• The business loan can be managed from the online banking access provided by the respective bank.
• In Business loan, the minimum loan term is fixed
• You can get multiple loan options as well as various schemes and offers which varies as per as your eligibility
• Interest rate charged by the bank for a business loan is less as compared to lending agencies and financial assets such as credit cards.
• You can also reap tax benefits as the ratio of profits is used to pay the loan amount is exempted from tax calculations.

  

Types of Business Loan in India

There are various Business Loans depends on your need. So let's talk about the types of Business Loans active in today's market.

• Short Term Loans
• Business Line of Credit
• Equipment Financing
• Invoice Financing
• Merchant Cash Advances
• SBA Loans
• Installment Loans
• Personal Loans for Business
• Microloans
• Crowd Funding and P2P Loans
• Commercial Real Estate Loans

Eligibility Criteria of a Business Loan

Below stated are the eligibility that you must have to meet before applying for a Business Loan

• The individual must have a minimum age of 21 years to a maximum of 65 years
• The income or Business of the individual must have a profit-making period of last 2 years
• Net income of a firm must be above of Rs 1,50,000 per annum
• Partnership or Proprietorship Firm must have a minimum stake of 25%
• Chartered Accountant / Self Employed Individual must have a diploma or degree in any discipline

Documents Required for a Business Loan

• Identity Proof- Aadhar Card, PAN Card, Passport, Driving License,
• Resident Proof- Utility Bills of the last 3 months
• Bank statement of the last 6 months
• Proof of stability of Business for self-employed individuals
• Salary slip of the last 3 months for salaried individuals
• ITR, Balance Sheet, Income & Profit & Loss a/c for the last 2 yrs.
• Sole Proprietorship Declaration, Certified true copy of Memorandum & Articles of Association of Business Ownership

About the Author

Vipul Das is covering Business and Finance related articles from the last 1 year for goodreturns and has done BCA. You can connect with him on Facebook