Best Banks to Apply for a Business Loan

Apply for a Business Loan

Have you been looking for funds regarding the working capital? Do you need funds for getting the necessary equipment? Are you looking to expand your business? Business owners do need business loans for utilizing the funds for such critical needs. But, before you jump out to a bank and apply for a loan, you have to choose the right bank for it. In fact, many banks have a different type of loan that is suitable for different industries.

Here, we have come up with the best banks to apply for a business loan:

HDFC Bank business loan

The maximum amount you can borrow is Rs. 50 Lacs for which the period is in between 12 and 48 months. The minimum amount for this business loan is rs. 75,000. The interest rate starts from 15%. While you won’t be expecting any prepayment before repaying the EMIs of six months.

State bank of India business loan

SBI is capable of offering business loans not only to large companies but also to SMEs. Also, you can expect both secured as well as unsecured lending. There are several other loan schemes that the government has provided. For instance, these are schemes such as Stand-up India, PM Mudra Yojana, CGTMSE and PMEGP. So, if you are applying for a business loan, you must go through each of the schemes and select the best one. 

In the case of CGTMSE, the interest rate is lowest i.e. 8.25%. However, the bank is capable of offering loans that are asset-backed starting from 10.70%. 

Bajaj Finserv business loan

Bajaj Finserv offers a business loan with an amount that ranges from Rs. 1 Lac to Rs. 40 Lacs. Hence, for the processing fee, they will be charging you 3% of the amount you want to lend. The interest rate starts from 15% to onward. For any amount of your business loan, the tenure can be in between one to five years. Moreover, you can also avail a pre-approved loan. Moreover, you can find a number of special loans for SMEs, doctors and engineers. 

Fullerton Finance

The business loan from this bank is available for an amount that ranges in between Rs. 1 lacs to Rs. 50 Lacs. For this, the interest rate can go from 19% to onwards. The tenure for the loan you applied can come in between 12 to 48 months. For this, the eligibility criterion for age lies in between 27 and 65 years. Also, there must be a minimum of three years for business vintage.

Apart from that, there are other schemes for those who are self-employed. Moreover, there are a number of special loans for chartered accountants, doctors, women etc. Moreover, you are getting the facilities of foreclosure and prepayment. 

IIFL Finance business loan

This business loan is ideal for the sole proprietorship firms, partnership firms, private limited companies, and the business that includes trading, manufacturing, etc. Also, the amount for the business loan ranges from Rs. 1 Lac to Rs. 7.5 Lacs. For this, the tenure lies in between 12 to 36 months. 

Moreover, the interest rate starts from 25% to onwards. While, for the processing fee, you have to pay 3% of the amount to borrow. 

Tata Capital Finance business loan

The amount you can borrow lies in between Rs. 3 Lacs and Rs. 50 Lacs. Moreover, the tenure for the loan amount ranges from 12 months to 36 months. However, the interest rates start from 17% to onwards. This financial institution is capable of offering SME and MSME loans, machinery loans, and capital loans. Talking about the eligibility, your company must have at least 3 years of business vintage. Moreover, it is important to have a consistent profit and growth for the last two years. 

RBL Bank business loan

Looking for a smaller amount with suitable tenure? RBL Bank can offer such kind of business loans to you. The loan amount ranges from Rs. 2.5 lacs to Rs. 20 Lacs. For this, the tenure ranges in between 12 months and 36 months. The interest rates start from 16% to onwards. Not only secured but the unsecured business loan is available. The eligibility criterion for age can be from 27 to 65 years. Firms like a sole proprietorship, private limited, professional and partnership are able to avail this loan. 

So, before applying for a business loan, you must be considering other factors apart from the interest rate. As a matter of fact, it is important for you to understand your needs. Choose the most suitable schemes. As being a business owner, you must know that the money saved is the money earned. So, choosing the right bank includes choosing the right schemes. We hope you have found these helpful and are able to decide which loan to go for.