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Top Private Banks For Business Loan - January 2025
Interest Rate
24%
Loan Amount
₹10L - ₹50L
EMI Per Lakh
₹2,877
Processing Fees
Pre-Payment Charges
Interest Rate
16% - 28%
Loan Amount
₹3L - ₹75L
EMI Per Lakh
₹2,432 - ₹3,114
Processing Fees
Pre-Payment Charges
Quick Approval
Interest Rate
15.99% - 24.25%
Loan Amount
Up to ₹50L
EMI Per Lakh
₹2,431 - ₹2,891
Processing Fees
Pre-Payment Charges
Interest Rate
14% - 26%
Loan Amount
₹1L - ₹35L
EMI Per Lakh
₹2,327 - ₹2,994
Processing Fees
- 2.5% of Loan amount for Business Loans (loan amount greater than Rs 25 lakh)
- 3% of Loan amount for small business Loans (Rs 5 lakh to Rs 25 lakh)
- (No processing fee applicable for small business loans below Rs 5 lakh)
Pre-Payment Charges
- Zero foreclosure permitted before repayment of 6 EMIs.
- On payment of 7 to 18 EMIs – 5% of principal outstanding.
- On payment of more than 18 EMIs – 3% of principal outstanding.
- Note: The foreclosure charges are not applicable for facility sanctioned to MSMEs with floating interest rate loans and for fixed interest rate loans with loan amounts of up to Rs 50 lakh.
Interest Rate
14%
Loan Amount
₹1L - ₹9L
EMI Per Lakh
₹2,327
Processing Fees
Pre-Payment Charges
Interest Rate
13%
Loan Amount
Up to ₹75L
EMI Per Lakh
₹2,275
Processing Fees
Pre-Payment Charges
- Prepayment / foreclosure charges for MSME 2%.
Interest Rate
12.5% - 16%
Loan Amount
₹1L - ₹40L
EMI Per Lakh
₹2,250 - ₹2,432
Processing Fees
Pre-Payment Charges
- Charged as per the terms and conditions mentioned in the sanction letter.
- No foreclosure charges for Micro and Small enterprises.
Interest Rate
12% - 18%
Loan Amount
₹1L - ₹30L
EMI Per Lakh
₹2,224 - ₹2,539
Processing Fees
Pre-Payment Charges
Interest Rate
11.9% - 21.35%
Loan Amount
Up to ₹40L
EMI Per Lakh
₹2,219 - ₹2,725
Processing Fees
Pre-Payment Charges
Interest Rate
11.1% - 16%
Loan Amount
₹1L - ₹2Cr
EMI Per Lakh
₹2,179 - ₹2,432
Processing Fees
Pre-Payment Charges
Interest Rate
10.75% - 25%
Loan Amount
₹50K - ₹10Cr
EMI Per Lakh
₹2,162 - ₹2,935
Processing Fees
Pre-Payment Charges
Interest Rate
10% - 22.5%
Loan Amount
₹50K - ₹50L
EMI Per Lakh
₹2,125 - ₹2,790
Processing Fees
- Up to 2.00%* of the loan amount.
- NIL Processing Fees for loan facility up to ₹5 Lakhs availed by micro and small Enterprises subject to URC submission prior to disbursal.
Pre-Payment Charges
- 06 – 24 months: 4% of total principal outstanding.
- 25 – 36 months: 3% of total principal outstanding.
- More than 36 months: 2% of total principal outstanding.
- Note:The bank does not permit part/full prepayment of loans until repayment of at least 6 EMIs.
- The bank allows part-payment of up to 25% of the principal outstanding, after payment of 12 EMIs, once in the financial year and twice during the entire loan tenure.
- The bank does not levy any foreclosure/prepayment charges for fixed rate business loan facility of up to Rs. 50 Lakh availed by Micro & Small Enterprises (MSE) and closure from own sources
Interest Rate
9% - 36%
Loan Amount
Up to ₹75L
EMI Per Lakh
₹2,076 - ₹3,613
Processing Fees
Pre-Payment Charges
For unsecured loans:
For secured loans (immovable property):
Interest Rate
8.25% - 18%
Loan Amount
₹1L - ₹40L
EMI Per Lakh
₹2,040 - ₹2,539
Processing Fees
Pre-Payment Charges
Interest Rate
8.05% - 13.45%
Loan Amount
₹50K - ₹5Cr
EMI Per Lakh
₹2,030 - ₹2,298
Processing Fees
Pre-Payment Charges
--Interest Rate
Up to 15.99%
Loan Amount
₹30L - ₹1Cr
EMI Per Lakh
₹2,431
Processing Fees
Pre-Payment Charges
Top Private Banks For Business Loan - January 2025
Interest Rate
11.4% - 15.5%
Loan Amount
Up to ₹15L
EMI Per Lakh
₹2,194 - ₹2,405
Processing Fees
Pre-Payment Charges
Interest Rate
11.2% - 16.3%
Loan Amount
Up to ₹50Cr
EMI Per Lakh
₹2,184 - ₹2,448
Processing Fees
Pre-Payment Charges
Interest Rate
10.2% - 12.95%
Loan Amount
₹5L - ₹5Cr
EMI Per Lakh
₹2,135 - ₹2,273
Processing Fees
Pre-Payment Charges
--Interest Rate
9.5% - 11.55%
Loan Amount
₹50K - ₹20Cr
EMI Per Lakh
₹2,100 - ₹2,202
Processing Fees
Pre-Payment Charges
Interest Rate
8.15% - 15%
Loan Amount
₹50K - ₹15L
EMI Per Lakh
₹2,035 - ₹2,379
Processing Fees
Pre-Payment Charges
Interest Rate
6.75% - 13.5%
Loan Amount
₹5L - ₹50L
EMI Per Lakh
₹1,968 - ₹2,301
Processing Fees
Pre-Payment Charges
Top Private Banks For Business Loan - January 2025
Interest Rate
12.5% - 26%
Loan Amount
₹5L - ₹75L
EMI Per Lakh
₹2,250 - ₹2,994
Processing Fees
Pre-Payment Charges
Interest Rate
19.99% - 26%
Loan Amount
₹50K - ₹10L
EMI Per Lakh
₹2,649 - ₹2,994
Processing Fees
Pre-Payment Charges
--Interest Rate
19%
Loan Amount
₹50K - ₹25L
EMI Per Lakh
₹2,594
Processing Fees
Pre-Payment Charges
Interest Rate
19%
Loan Amount
₹5L - ₹75L
EMI Per Lakh
₹2,594
Processing Fees
Pre-Payment Charges
- Up to 2.75% of the loan amount plus GST
- 4.5% on future principal outstanding on existing loan plus GST
- No foreclosure allowed for the first 9 months
Processing fees
Foreclosure charges
Interest Rate
18% - 24%
Loan Amount
₹50K - ₹1Cr
EMI Per Lakh
₹2,539 - ₹2,877
Processing Fees
Pre-Payment Charges
- 2% of the amount prepaid.
Interest Rate
18%
Loan Amount
₹3.5L - ₹25Cr
EMI Per Lakh
₹2,539
Processing Fees
Pre-Payment Charges
Interest Rate
17% - 21%
Loan Amount
Up to ₹50L
EMI Per Lakh
₹2,485 - ₹2,705
Processing Fees
Pre-Payment Charges
--Interest Rate
17%
Loan Amount
₹5L - ₹30L
EMI Per Lakh
₹2,485
Processing Fees
Pre-Payment Charges
Interest Rate
17% - 19%
Loan Amount
₹5K - ₹1L
EMI Per Lakh
₹2,485 - ₹2,594
Processing Fees
Pre-Payment Charges
--Interest Rate
16% - 24%
Loan Amount
Up to ₹40Cr
EMI Per Lakh
₹2,432 - ₹2,877
Processing Fees
Pre-Payment Charges
Interest Rate
15.5% - 24%
Loan Amount
Up to ₹50L
EMI Per Lakh
₹2,405 - ₹2,877
Processing Fees
Pre-Payment Charges
--Interest Rate
15% - 24%
Loan Amount
₹1L - ₹75L
EMI Per Lakh
₹2,379 - ₹2,877
Processing Fees
Pre-Payment Charges
--Interest Rate
15%
Loan Amount
₹50K - ₹2Cr
EMI Per Lakh
₹2,379
Processing Fees
Pre-Payment Charges
Quick Approval
Interest Rate
15% - 24%
Loan Amount
₹50K - ₹1Cr
EMI Per Lakh
₹2,379 - ₹2,877
Processing Fees
- Indifi Term Loan: 2%
- Indifi Business Loan Line of Credit: 2%
- Indifi Merchant Cash Advance: 2%
- Indifi Business Loan for Women: 2%
- Indifi Flipkart Seller Loan: 3%
- Indifi Amazon Seller Loan: 3%
Pre-Payment Charges
Interest Rate
15% - 28%
Loan Amount
₹1L - ₹30L
EMI Per Lakh
₹2,379 - ₹3,114
Processing Fees
Pre-Payment Charges
Interest Rate
14.99% - 24.99%
Loan Amount
₹5L - ₹50L
EMI Per Lakh
₹2,378 - ₹2,935
Processing Fees
Pre-Payment Charges
--Interest Rate
14.49%
Loan Amount
₹25L
EMI Per Lakh
₹2,352
Processing Fees
Pre-Payment Charges
- 5% of principal amount
Interest Rate
14% - 24%
Loan Amount
₹15L - ₹50L
EMI Per Lakh
₹2,327 - ₹2,877
Processing Fees
Pre-Payment Charges
--Interest Rate
13.99%
Loan Amount
₹5L - ₹25L
EMI Per Lakh
₹2,326
Processing Fees
Pre-Payment Charges
Interest Rate
13.5% - 19.5%
Loan Amount
₹5L - ₹50L
EMI Per Lakh
₹2,301 - ₹2,622
Processing Fees
Pre-Payment Charges
--Interest Rate
10% - 42%
Loan Amount
₹1L - ₹1Cr
EMI Per Lakh
₹2,125 - ₹4,009
Processing Fees
Pre-Payment Charges
Interest Rate
10% - 24%
Loan Amount
-
EMI Per Lakh
₹2,125 - ₹2,877
Processing Fees
Pre-Payment Charges
--Interest Rate
9% - 30%
Loan Amount
₹25K - ₹45L
EMI Per Lakh
₹2,076 - ₹3,235
Processing Fees
- Unsecured Business Loan
- Annual Maintenance Charges
- Secured Business Loan
- Annual Maintenance Charges
Pre-Payment Charges
- Pre-Repayment Charges(Unsecured Business Loan)
- Pre-Repayment Charges
Interest Rate
9% - 12%
Loan Amount
₹25L - ₹5Cr
EMI Per Lakh
₹2,076 - ₹2,224
Processing Fees
Pre-Payment Charges
Interest Rate
Up to 26%
Loan Amount
₹5L - ₹40L
EMI Per Lakh
₹2,994
Processing Fees
Pre-Payment Charges
Interest Rate
Up to 36%
Loan Amount
₹1L - ₹50L
EMI Per Lakh
₹3,613
Processing Fees
Pre-Payment Charges
Interest Rate
Up to 18%
Loan Amount
₹1L - ₹50L
EMI Per Lakh
₹2,539
Processing Fees
Pre-Payment Charges
--Compare Business Loan
We provide what your business needs. At Urban Money, we understand, address and absolve your need for capital via extensive business loan services. Tailoring business loans for startups, MSMEs and larger organisations, we help our clients choose the best lenders from an exhaustive list of public and private banks and NBFCs via cutting-edge comparative analysis of business loan interest rates. Get faster loan processing and easy disbursal with minimal documentation to escalate your business to new heights only at Urban Money.
Calculate Your Business Loan EMI Online
- 50 K
- 1 Cr
- 1
- 5
- 8
- 25
Monthly Loan EMI
Payment Breakdown:
Principal Amount
₹15,00,000
Interest Payable
Total Amount Payable
Business Loan Features and Benefits
Business loans come with numerous benefits and features to help borrowers cope with financial obligations. The following are a few features that you unlock when you count on a business loan:
- Fast Disbursal: Generally, business professionals apply for a business loan when they need instant access to funds. One of the best parts of a business loan is that it comes with quick disbursal. You don’t have to wait for months to access funds. The amount is disbursed within 3 to 5 working days.
- Minimum Documentation: One of the foremost features of a business loan is the minimal documentation requirement. Banks and finance companies process business applications with little documentation. No hectic paperwork is required. With the online business loan application process, you get the option to submit a scanned copy of the documents, that’s all.
- Competitive Business Loan Interest Rates: Banks and financial institutions offer business loans at attractive interest rates. Debtors can get commercial loans without higher monthly repayments.
- No Prepayment Charges: Prepayment of business loans is permitted without additional fees or charges. However, this may vary from one bank to another.
- Flexible Repayment Tenure: In general, banks and financial providers offer business loans with flexible repayment tenure. You can choose your repayment tenure as per your choice. However, don’t forget that a longer repayment period results in an increased payable interest component.
- Collateral-Free Loans: The availability of unsecured business loans allows you to get collateral-free business loans. Such loans are time efficient and can be easily accessed without pledging any commercial or personal assets.
Business Loan Overview
A business loan is a sum of money obtained by a company to cover expenses it is unable to cover on its own. Some entrepreneurs utilise business loans to pay for salary and wages while their new firm is getting off the ground, whereas others use borrowed funds for office supplies, inventory, business growth and business projects.
Lenders want to understand how the company plans to spend the borrowed funds, so business owners should make sure they have a detailed plan in place. It’s critical to impress lenders by appearing professional, or the loan application may be denied.
Businesses can pick from a range of loan choices, such as business startup loans, small business loans, and business loans for women, among others.
Factors Affecting Business Loan Interest Rate
Certain criteria are crucial in calculating the interest rates that apply. The following variables may affect the offered business loan interest rates:
1) Nature of Business
One of the essential aspects influencing the interest rate on your business loan is the type of business. Your business creditworthiness will decide what type of business loan you can get and at what interest rate. Your business should be involved with high-quality products and services. Additionally, the location in which you operate should not be on any blacklists.
2) CIBIL Score or Credit Score
A high CIBIL score can have a significantly positive impact on the offered interest rate. The lender will provide you with the lowest interest rate loan if your CIBIL score is high. On the flip side, they may charge you a higher interest rate or possibly reject your mortgage collateral if your CIBIL score is low.
3) Business Experience
The experience of the organisation is vital because a well-established enterprise is considered secure and risk-free. If you’ve been in business for a while, creditors may be willing to provide you with a business loan at a reduced interest rate to help you expand.
4) Repayment History
Another important aspect that determines business loan interest rates is your repayment history. If you consistently make your payments on time, you’ll have a better chance of getting a business loan with a reduced interest rate.
➡️ Read more about Machinery Loan
Business Loan Interest Rate
The business loan interest rate is determined by a number of factors, including the borrower’s financial profile, the purpose of the loan, collateral, the credit score or credit rating, and much more.
The following factors affect the business loan evaluation process:
- The financial feasibility of the business model.
- The amount of competitiveness in the industry.
- At the industrial level, the performance of the corporate entity.
- Annual turnover and overall business growth or expansion.
- Ratio financiers.
Banks decide the interest rates at which a loan can be issued to a borrower based on all of these indicators. The applicant’s personal creditworthiness is taken into account in addition to the business’s trustworthiness. Lenders typically offer commercial lending rates ranging from 7% to 21%.
Business Loan Documents Required
The following business loan documents are mandatory to avail of a loan with utmost ease:
- Form and Photographs: Duly filled business loan application form and 2 passport size photographs.
- Proof of Identity: PAN card, passport, Voter ID card, MAPIN Card or driving licence.
- Residence Proof: Voter ID card, ration card, utility bills, including electricity bill, telephone bill, Aadhaar card or lease agreement.
- Age Proof: Voter ID card, Aadhaar card, PAN card or passport.
- Financial Documents: Income Tax Returns for the last 2 years, balance sheet audited by a certified Chartered Accountant (CA), profit and loss statement (2 years), along with a statement representing the business transaction.
- Proof of Income: Bank statement of business account as well as the personal account for the last two years.
- Proof of Business Ownership: Documents including the declaration of a sole proprietorship, a copy of the memorandum along with the articles of association will be required.
➡️ Read more about 10 Business Loan Schemes for Women Entrepreneurs
FAQs
From refinancing to reducing your interest, we have the answers right here.
How do I get a loan to start a business?
To get a loan to start a business, you should count on a startup business loan. All you have to do is apply for a business loan, either online via the bank’s official website or offline by visiting its nearest branch.
Which loan is best for business?
The loan that will be best for your business entirely depends upon the nature of your business. For instance, if you are a startup, then move forward with a startup business loan. In the case of a small business, count on a small business loan.
What is the limit of a business loan?
At maximum, you can avail of a business loan of INR 30 lakh. However, it will depend upon certain factors, including the credibility of your business. At the same time, the business loan repayment period falls in the range of 12 to 60 months.
Can I get a loan for business?
Yes, you can get a loan for a business. However, you need to be eligible for a business loan. Additionally, having a good credit score, stable business growth, and good repayment history will increase the chances of loan approval.
How to know what business loan amount am I eligible for?
The business loan amount you are eligible for is determined by your profile, business requirements, CIBIL score, nature of business, repayment history, annual turnover, and business stability.
How to apply for a business loan?
You can apply for a business loan either through the bank or financial institution’s online portal or by visiting the branch in person. Make sure to keep the documents ready beforehand while applying for a business loan.
Is a business loan a tax-saving deduction?
Yes, a business loan is a tax-saving deduction. Regardless of the type of business loan, i.e., working capital loan, equipment finance, startup business loan, etc., interest paid is tax-deductible.
What are the documents needed for business loans for a salaried applicant?
For a salaried applicant, documents, including proof of identity, duly filled application form, ITR proof, age proof and income proof, will be required for a business loan application.
What is the minimum turnover requirement for a business loan?
The minimum turnover requirement for a business loan is INR 40 lakhs.
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Business Loan Guide
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