Whether you have a running business or you are starting a business, you need to have enough amount of capital so that the business can run smoothly and the things can be done in a hassle free manner. You may require a Business Loan for running your business easily.
Bank | Interest Rate | Tenure | Max. Loan Amount | Processing Fees |
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Allahabad Bank | Please contact bank branch | Maximum 5 years | Maximum exposure per borrower : Rs. 10.00 crores Of which Ceiling as under --Working capital (FB & NFB) Rs 10.00 crore --Term Loan Upto Rs 2.00 crore | Up to 6% of the loan amount |
Indian Bank | Please contact bank branch | Maximum 5 years | Maximum exposure per borrower : Rs. 10.00 crores Of which Ceiling as under --Working capital (FB & NFB) Rs 10.00 crore --Term Loan Upto Rs 2.00 crore | Up to 6% of the loan amount |
Bank Of India | 10.20% to 12.95% | Maximum 5 years |
| Rs. 500/- to Rs.10,000/- |
Bank Of Baroda | 10.40% to16.15% | Maximum 10 Years | Will be decided by the bank based on borrower's loan repayment capacity, income statements, cash flows and past track record of repayment. | |
Dena Bank | 10.40% to16.15% | Maximum 10 Years | Will be decided by the bank based on borrower's loan repayment capacity, income statements, cash flows and past track record of repayment. | |
Vijaya Bank | 10.40% to16.15% | Maximum 10 Years | Will be decided by the bank based on borrower's loan repayment capacity, income statements, cash flows and past track record of repayment. | |
Karur Vysya Bank | 10.50% | Max. 7 Years | Maximum of Rs.20 Lakhs | 0.75% of the loan amount |
Idfc First Bank | 10.50% onwards | Max. 4 Years | Maximum Rs 1 Crore. Will be decided by the bank based on borrower's loan repayment capacity, income statements, cash flows and past track record of repayment. | Upto 3.5% of loan amount |
Karnataka Bank | 10.66% to 13.66% | Max. 35 months | Above Rs.10 lakh, up to Rs.50 lakh | |
Dhanalakshmi Bank | 10.70% onwards | Max. 5 Years | Rs.10 lakhs to Rs.5 Crore | Upto 2% of the loan amount plus GST |
Tamilnad Mercantile Bank | 10.9% to 11.40% | Max. 7 Years | Up to Rs. 50 Lakh | Up to 1% (plus applicable taxes) of the loan amount |
Federal Bank | 10.90% to 16.35% | Max. 10 Years | Will be decided by the bank based on borrower's loan repayment capacity, income statements, cash flows and past track record of repayment. | Upto 1% of the loan amount plus GST |
The Nainital Bank | 10.95% | Max. 10 Years | Maximum Rs.200.00 lakhs per borrower for MSE sector (Manufacturing & Services). | Nil - Up to Rs 2 lakh |
Hdfc Bank | 10% to22.50% | Max. 4 Years | Up to Rs. 40 lakhs (up to Rs. 50 lakhs in select locations). Can avail Rs 50,000/- to Rs 50,00,000/- depending on your income, repayment capacity and respective location product cap | Up to 2.00% of the loan amount |
Jammu And Kashmir Bank | 11.25% | Max. 10 Years | Upto 15 lakhs. However, bank may extend more loan on case to case basis | Rs. 1000 + GST |
Laxmi Vilas Bank | 11.80% to 13.10% | Max. 3 Years | ||
Icici Bank | 12.25% to 13.35% | Max. 7 Years | Up to Rs. 1 crore | Up to 2% (plus applicable taxes) of the facility amount |
City Union Bank | 12.50% | Max. 5 Years | Minimum Rs.15.00 Lakhs Maximum Rs. 75.00 Lakhs | Upto 2% of the loan amount plus GST |
Indusind Bank | 13% to 22% | Max. 4 Years | Up to Rs. 50 lakh | Up to 3% plus GST |
South Indian Bank | 14.85% to 19.10% | Max. 5 Years | Minimum: Rs. 10,00,000 Maximum: Rs. 50,00,000 | Up to 1% (plus applicable taxes) of the loan amount |
Indian Overseas Bank | 14.95% to 19.20% | Maximum 5 years | Loan amount Rs.10.00 lacs and subject to maximum of Rs.500.00 lacs (FB + NFB) | Up to 4% of the loan amount |
Kotak Mahindra Bank | 16% to 19.99% | Max. 4 Years | Rs. 3 lakhs to Rs. 75 lakhs | Maximum 2% of the loan/ facility amount (Plus Taxes as applicable) |
Bandhan Bank | 7.50% onwards | Max. 7 Years | Minimum: Rs. 3,00,000 Maximum: Rs. 25,00,000 | 1% of the loan amount plus GST |
Central Bank Of India | 7.80% to 12.40% | Maximum 5 years | Maximum Rs.500.00 lakhs per borrower |
|
Idbi Bank | 8.05% onwards | Maximum 5 years | Up to Rs. 500 lakh | Up to 1% of the loan amount |
Andhra Bank | 8.20% to 12.30% | Maximum 5 years | Standby Ad-hoc WC / Standby Term Loan: For both facilities put together maximum quantum of finance is Rs. 2.50 crores with a cap of 25% of regular WC (FB & NFB) sanctioned limits. Further, the Term Loan for intangible assets shall not exceed 20% of eligible limit under the scheme subject to maximum Rs.0.50 Crores. | |
Corporation Bank | 8.20% to 12.30% | Maximum 5 years | Standby Ad-hoc WC / Standby Term Loan: For both facilities put together maximum quantum of finance is Rs. 2.50 crores with a cap of 25% of regular WC (FB & NFB) sanctioned limits. Further, the Term Loan for intangible assets shall not exceed 20% of eligible limit under the scheme subject to maximum Rs.0.50 Crores. | |
Union Bank Of India | 8.20% to 12.30% | Maximum 5 years | Standby Ad-hoc WC / Standby Term Loan: For both facilities put together maximum quantum of finance is Rs. 2.50 crores with a cap of 25% of regular WC (FB & NFB) sanctioned limits. Further, the Term Loan for intangible assets shall not exceed 20% of eligible limit under the scheme subject to maximum Rs.0.50 Crores. | |
Dcb Bank | 8.25% to 18% | Max. 15 Years | Will be decided by the bank based on borrower's loan repayment capacity, income statements, cash flows and past track record of repayment. | Upto 2% of the loan amount plus GST |
Bank Of Maharashtra | 8.50% onwards | Maximum 10 Years | Up to Rs. 2 Crores | Up to 3% of the loan amount |
State Bank Of India | 8.65% onwards | Maximum 5 years | The Bank's expert credit crew gauges the applicant's particular fund requirements and evaluates the company's credit worthiness, factoring in the cash flows generated by it. | Up to 4% of the loan amount |
Oriental Bank Of Commerce | 8.65% to 10.15% | Maximum 7 years | Need based & as per repayment capacity of the borrower | 0.50% of the loan amount |
Punjab National Bank | 8.65% to 10.15% | Maximum 7 years | Need based & as per repayment capacity of the borrower | 0.50% of the loan amount |
United Bank Of India | 8.65% to 10.15% | Maximum 7 years | Need based & as per repayment capacity of the borrower | 0.50% of the loan amount |
Canara Bank | 9.05% to 11.30% | Maximum 10 Years | 1. Manufacturing Units : Rs.500 Lakhs. 2. Service Units : Rs.200 Lakhs. Subject to the Minimum loan amount of Rs.10 lakhs. | 50% of the applicable processing charges. |
Syndicate Bank | 9.05% to 11.30% | Maximum 10 Years | 1. Manufacturing Units : Rs.500 Lakhs. 2. Service Units : Rs.200 Lakhs. Subject to the Minimum loan amount of Rs.10 lakhs. | 50% of the applicable processing charges. |
Punjab And Sind Bank | 9.05% to 9.45% | Maximum 5 years | Minimum: Rs 5 lakh and Maximum: Rs 500 lakh | 1% of the loan amount with minimum of Rs. 2000 |
Axis Bank | 9.25% to 20% | Max. 5 Years | Minimum: Rs. 50,000 Maximum: Rs. 75,00,000 | Up to 2.00% + Applicable taxes |
Uco Bank | 9.85% to 11.85% | Maximum 5 years | up to Rs. 1 crore | Up to Rs. 5 Lakh: NIL |
Yes Bank | 9% to 13.9% | Max. 7 Years | Turnover based lending approach for assessment of credit limits. Max up to Rs. 50 lakh | Up to 2.50% (plus applicable taxes) of the loan amount |
Indian Government has already come up with variety of business loan schemes and various programs to encourage entrepreneurs to start new business as the growth of business ultimately contributes a lot to the growth of economy. Under this, many types of different schemes are offered by public sector banks to give these types of business loans to small and medium enterprises (SMEs) such as Credit Guarantee Fund Scheme for Micro and Small Enterprises, Market Development Assistance Scheme for MSMEs, Mini Tool Room and Training Centre Scheme, Credit Link Capital Subsidy Scheme for Technology Upgradation, etc.
A Business Loan is a loan which is specifically extended for business purposes. It may be obtained from a bank and can be either secured or unsecured. For secured loans, banks will require collateral as a security for that loan. Hence, the borrower pledges an asset such as plant, equipment, stock or vehicles for availing a secured loan which may be used, if loan is not repaid by the borrower in due course. Unsecured Loan is not backed by any security though the bank (lender) will have a general claim on the borrower's assets, in case repayment is not made by the borrower in time.
Business Loan is a borrowed capital and the business needs to pay a regular interest and repay the whole principal at the end of the loan period.
Broadly, Business Loan has been divided into following 2 categories:
Working Capital Business Loan: It is provided for running daily operations of a business smoothly. It is generally given for shorter term.
Term Business Loan: It is provided for the growth and expansion of business. It is comparatively for longer term.
Broadly, Business Loan has been divided into following 2 categories:
(1) Secured Business Loan: This loan is backed by collateral. This loan is available at comparatively low interest rate, as the bank can sell the collateral in case of any default by the borrower.
(2) Unsecured Business Loan This loan is not backed by any collateral. This loan is available at comparatively high interest rate to the borrowers.
The Business Loan Application Form is to be filled up and submitted to get a business loan. The form requires the details of following items:
The Micro, Small and Medium Enterprises in Manufacturing and service sector are defined as under in MSMED ACT, 2006
Enterprises* | Units engaged in manufacturing/ processing of Goods | Units engaged in providing/rendering of Services th> |
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Micro Enterprise | Investment in plant and machinery not exceeding Rs.25 lakhs. | Investment in equipment not exceeding Rs.10 lakhs. |
Small Enterprise | Investment in plant and machinery exceeding Rs.25 lakhs but not exceeding Rs.5 Crores. | Investment in equipment exceeding Rs.10 lakhs nut not exceeding Rs.2 Crores |
Medium Enterprise | Investment in plant and machinery exceeding Rs. 5 Crores but not exceeding Rs.10 Crores. | Investment in equipment exceeding Rs. 2 Crores nut not exceeding Rs.5 Crores |
Manufacturing Enterprises i.e. enterprises engaged in the manufacture or production, processing or preservations of goods with investment in Plant & Machinery as stated above.
Service Enterprises i.e. Enterprises engaged in providing or rendering services and whose investment in equipment as specified above. (Original cost excluding Land & Building and furniture, fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act, 2006).
Loans for food and agro processing will be classified under Micro and Small Enterprises, provided the units satisfy investments criteria prescribed for Micro and Small Enterprises, as provided in MSMED Act, 2006.
*All individual/s, firms/ company /LLP, etc.