North & West India - 9810843674 (10 Lines), South & East India - 9902637374 (10 Lines), 9310222538
Running a business, irrespective of its size, without proper funding is next to impossible task. Having a free flow of cash is a must for investment purpose. However, the amount of money required for business varies from time to time and size to size, and therefore it is advisable to conduct a structured market research before taking on the crucial step.
Compare business loan interest rates across various banks & non-financial banking companies.
| Particulars of Interest Rate Business Loan | Interest Rate and Other Applicable Charges |
|---|---|
| Interest Rate | 13% onwards |
| Type of Interest Rate | Flat Rate and Diminishing Rate |
| Processing Fees | Zero to 2.5% of the loan amount |
| Loan Amount | Rs. 1 lakh to Rs. 1 crore |
| Loan Tenure | 6 months to 5 years |
| Preferable Credit Score | 750 and above |
Following are the business loan interest rates by top banks & NBFCs in India
| Bank | Loan Amount | Business Loan Interest Rates* | Lowest EMI per lakh for Max Tenure | Processing Fee on the Loan Amount |
|---|---|---|---|---|
 SBI Bank |
Rs. 1 Billion Max | 11.20% - 16.30% | Rs. 2,594 for 48 months | 2% to 3% |
 HDFC Bank |
Rs. 50 Lakhs Max | 15.50% - 18.30% | Rs. 2,808 for 48 months | 0.99% onwards. Max 2.50% |
 ICICI Bank |
Rs. 40 Lakhs Max | 12.90% - 16.65% | Rs. 2,270 for 60 months | 0.99% onwards. Up to 2% |
 Axis Bank |
Rs. 50 Lakhs Max | 15.50% to 24% | Rs. 2,405 for 60 months | Up to 2% |
 RBL Bank |
Rs. 10 Lakhs Max | 20.00% - onwards | Rs. 2,649 for 60 months | 3% |
Some common parameters that impact interest rates of business loans:
1. Credit scores: All banks, including public, private, assess the credit score of the loan applicant before providing credit with the lowest interest rate. By having a high credit score, you can acquire low SBI Business loan interest rates, HDFC Business loan interest rate, NBFCs and low rates from other banks.
2. Company history: To obtain a business loan, irrespective of the size, the company must have functioned for at least 3 years. The older the business, the greater the chance of credit facility.
3. Healthy cash flow: In addition to unit profitability, the lender will look for monthly turnover. If the turnover is consistent, then the lender assumes that there would be no default in terms of repayment by the borrower and provide credit facility.
4. Collateral: In spite of eligibility, collateral must be pledged as security in NBFC or banks against a loan sanction. The more valuable the collateral, the greater the loan amount, and interest rates can be negotiated.
It is a must for the borrower to analyse the market performance of his preferred business loan provider. Also, it is wise to identify the banks that provide lowest interest loan rates, compare business loan rates India, and ensure that the interest rate (& other charges) being charged on the loan amount are in accordance to the bank’s policy.
Business Loans
HR Consulting
Corporate Training
Financial Consulting