Different types of business loans are available to help you meet various capital needs. You can use these versatile loans to plug funding gaps or solve cash flow worries.
Companies use business loans to purchase new inventory and stocks, so they can continue offering its product(s) to customers. Because these loans typically do not require collateral, they are an excellent option for small businesses that do not possess many assets.
A growing business needs a solid team that drives it to success. However, the cost of hiring and training employees can be significant, especially for a small company. Business loans allow you to expand your team without feeling the pinch. Use these loans to recruit and train new employees.
The most advanced machinery for your business comes at a high price. A business loan can help you purchase the latest equipment to boost output at scale. With the right loan product, you can finance these expensive yet important purchases without affecting cash flows.
Effective marketing is the road to expanding your business. What’s more, marketing is an exercise that must go on to continually attract new customers. This means you have to invest in hiring top talent or specialist agencies. Pay for all your marketing expenses with a business loan.
It takes a lot to keep a business running day in and out. This is why companies use a business loan to meet daily operational expenses in case of a liquidity crunch or irregular cash flow. Instead of burning your revenue on operational costs, use a loan to tackle them smartly.
A Business Loan can be availed of by anyone, whether you are a salaried employee, government employee, or a working professional. All you have to do is fulfill basic eligibility conditions laid out by banks and NBFCs. While personal loan eligibility conditions can differ across banks and NBFCs, here are some standard criteria you must be:
Use our Business Loan eligibility calculator to ascertain your loan eligibility and apply for a loan.
Reach out to us with your business loan requirements.
Our top business loan advisors will help you select a product aligned with your needs.
After you've picked a product, check eligibility criteria and compile basic documents. We guide you through the process and help you with the business loan documentation requirement.
We help you apply for the business loan with the lender of your choice.
After verifying your application, the lender will sanction your loan.
If you want to change your loan terms in the future - like switching interest rate or refinancing - our advisors will recommend the best course of action.
|Bank Name||Minimum Rate Of Interest(%)||Loan Amount||Loan Tenure||Minimum Processing Fees||Apply Now|
|HDFC Bank||11%||Rs. 1LAKH - 50LAKHS||1 - 5 YEARS||1%||Apply Now|
|Lendingkart Finance||15%||Rs. 1LAKH - 2CRS||1 - 3 YEARS||2%||Apply Now|
|Kotak Mahindra Bank||16%||Rs. 1LAKH - 75 LAKHS||1 - 5 YEARS||2%||Apply Now|
|Yes Bank||16%||Rs. 1LAKH - 50 LAKHS||1 - 5 YEARS||1.50%||Apply Now|
|ZipLoan||16%||Rs. 1LAKH - 7.5 LAKHS||1 - 3 YEARS||2%||Apply Now|
|Axis Bank||17%||Rs. 1LAKH - 50 LAKHS||1 - 4 YEARS||1%||Apply Now|
|Fullerton Finance||17%||Rs. 1LAKH - 50 LAKHS||1 - 5 YEARS||2%||Apply Now|
|ICICI Bank||17%||Rs. 1LAKH - 40 LAKHS||1 - 5 YEARS||1%||Apply Now|
|Tata Capital Finance||17%||Rs. 1LAKH - 75 LAKHS||1 - 4 YEARS||1.50%||Apply Now|
|Hero FinCorp||18%||Rs. 1LAKH - 25 LAKHS||1 - 3 YEARS||2%||Apply Now|
|IDFC First Bank||18%||Rs. 1LAKH - 1CR||1 - 4 YEARS||2%||Apply Now|
|IIFL Finance||18%||Rs. 1LAKH - 30 LAKHS||1 - 5 YEARS||2%||Apply Now|
|NeoGrowth Finance||18%||Rs. 1LAKH - 75 LAKHS||1 - 3 YEARS||2%||Apply Now|
Disclaimer: The loan amount, loan tenure, processing fees, loan interest rate & other credit factors may vary from case to case & are subject to change according to the lender & government policies.
The processing fee on business loans is the amount charged by the lender to process your application and cover various administrative costs. Usually, lenders charge a processing fee of up to 2% to 3.5% of the business loan amount + GST. This is just a one-time fee you pay the lender at the time of disbursement. With Finbros Capital Advisory, you can find business loans with the lowest processing fees that meet your growth needs!
A business loan EMI calculator helps you get a view of the monthly installments you will pay to successfully repay your loan. The EMIs include both the principal and interest components. Simply enter the loan amount, your loan tenure, and the interest rate in the EMI calculator. Always use a calculator before you apply for a business loan. Input different combinations of tenure, amount, and interest to see how you can plan the lowest business loan EMIs.
Some of the common business loan uses are:
1. Pay for operational expenses
2. Start a new project
3. Hire more employees
4. Business expansion
5. Restock inventory
6. Buy new machinery
Most business loans are unsecured in nature and don't require collateral. However, some lenders may require you to pledge a security in case of a business term loan.
Below are the most common factors affecting your business loan amount:
1. Your business credit score
2. Business financials, including balance sheets and P/L statements
3. 3 years of business continuity
The maximum loan amount you can borrow typically differs from one lender to another. They can go as high as Rs. 1 crore in some cases.
Most lenders charge up to 3.5% of the business loan amount including applicable GST charges as processing fees. It is usually paid to the lender at the time of disbursement.
Yes, albeit with some terms and conditions. While some lenders allow you to pre-close the loan after the 1st EMI payment, others have a prespecified lock-in period. Not to mention, some levy a penalty fee of 2% to 5% of the remaining balance while others don't levy anything.
MSME loans, as the name suggests, are loans designed for small and medium-sized businesses. These are smaller loans available at high interest rates for day-to-day operation-related expenses. They also have shorter tenures. On the other hand, business loans are usually extended to large and established enterprises, and at comparatively affordable interest rates. These are bigger loans, often going up to crores, with longer tenures. Organisations can use them to fund expansion and diversification initiatives.
The best business loan providers in India offer two types of interest rates:
Fixed interest rate: A fixed interest rate remains the same for the entire business loan term. You pay a fixed EMI amount monthly.
Floating interest rate: A floating interest rate changes according to the Repo Rate or the base rate set by the RBI. However, this change only increases or decreases the loan tenure, not the EMI amount.
Business loan EMIs are calculated using three basic loan components.
1. Principal loan amount
2. Loan tenure
3. Rate of Interest
You just need to input the values in the business loan EMI calculator. The EMI amount and the total payable interest are displayed in a few seconds. Unlike manual calculations, a calculator offers accurate estimations.
Use online business loan EMI calculators to understand your EMI obligations. The calculator will also help you find out which scenarios result in the lowest business loan EMIs!