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Business Loan
To start any business or to carry on the functionality of the existing business one needs funds.
But the question arises from where you can get these funds. A business loan may be the answer to all such questions. What is a business loan? A business loan is something similar to personal loan, but it is specially desigend to meet your business requirements and goals. With a business loan, you borrow a certnain amount of money for a tenure, with interest rate and monthly repayment option are fixed with the term.
These loans can be secured as well as unsecured. Secured business loans generally have lower interest rates. Apart from a business loan a financial institution may have other kind of products like overdraft facilities to take care of the business needs of the individuals.
Who is eligible for business loan?
The business loan can be offered to any person who is running a legitimate business with a decent earning can apply for a business loan. Different banks have different criteria and terms to validate the authenticity of his/her business. After authentication and validation, banks have the sole authority to decide the amount of loan and even whether it wants to offer the loan to borrower or not. Below are some points which are generally considered before offering a loan:
1.Type of the business: Proprietorship, Partnership, Pvt.Ltd. or Public Ltd.
2.Turnover of the business.
3.Profit of the business.
4.Cash flow of the business.
5.Track record and type of business.
How much Business loan I can get ?
The business loans are offered on the basis of the profit and numbers of years you are running this business. It also depends upon cash flow and other aspects related to revenue generation. After considering all the major factors, banks come out with eligibility of the loan amount if can offer to any business. The key criteria for approval of any business loan is how profitable the business is and how the borrower will manage to repay the EMIs with other liabilities and expenditures of the company.
From where I can get a business loan.
There are many banks which can offer a business loan to eligible business owners.
What will be the interest rate of business loan?
All Bank Business Loan Interest Rates Jun 2022
Bank |
Interest Rates |
Processing Fees |
Tenure |
Disbursal Time |
|
|
|
|
|
HDFC BANK |
15% - 19% |
2.49% |
12-36months |
4-Working Days |
ICICI BANK |
16%-22% |
2.00% |
12-36months |
5-Working Days |
TATA Capital |
18%-24% |
2.50% |
12-36months |
5-Working Days |
BAJAJ FINSERV |
19%-23% |
Upto 3.00% |
12-60months |
2-Working Days |
YES BANK |
15.5%-21% |
2.00% |
12-60months |
5-Working Days |
RBL BANK |
19%-26% |
2.50% |
12-36months |
5-Working Days |
Fullerton India |
22%- 29% |
3.00% |
12-36months |
7-Working Days |
Capital First |
18%-25% |
3.00% |
12-48months |
4 to 5-Working Days |
Kotak Bank |
18%-23% |
2.50% |
12-36months |
7-Working Days |
ICICI Bank
- Cash credit /Overdraft for meeting working capital finance requirement.
- Export credit to provide pre-shipment and post shipment finance.
- Letter of credit to facilitate trade.
- Bank guarantees for meeting performance and financial obligations.
- Term loans for purchase of commercial assets and business expansion needs.
- Loan amount- up to Rs 50.0 million for working capital and capital expenditure needs.
- Interest rate is linked to ICICI Bank’s base rate for fund based facility.
- Low collateral requirement and lending available upto 3 times of the value of collateral.
Business Loans by CGTMSE
Features –
- Cash credit /Overdraft for meeting working capital finance requirement.
- Letter of credit to facilitate trade.
- Bank guarantees for meeting performance and financial obligations.
- Term loans for purchase of commercial assets and business expansion needs.
- Loan amount- upto Rs 10.0 million for working capital and capital expenditure needs.
- Interest rate is linked to ICICI Bank’s base rate for fund based facility.
- No collateral is required.
HDFC Bank
Features
- Designed to help businessmen involved in manufacturing, trading and the service industry.
- Loan amount upto Rs 15 lakhs and this amount can be upto Rs 30 lakhs in some selected locations.
- No collateral /guarantor /security required.
- Rack interest rate range 17.5% to 22%.
HSBC Bank
- Can choose from a range of finance options like export/import financing, discounting of export receivables, bank guarantees for business requirements, treasury line to manage cross currency transaction risk.
- Maximum loan amount upto Rs 10 crores
- MSE( Micro and Small Enterprise) can avail loans upto Rs 10 lakhs without collaterals.
- Flexible quantum and tenor of loans.
- Interest rate is calculated on the prevailing base rate at the time of processing.
SBI
SBI has an array of loan products for small and medium business enterprise-
Manufacturing
SBI SME Collateral Free Loan-
- Borrowers eligible under the scheme will be covered under CGTMSE guarantee scheme.
- No collateral required.
- Maximum Loan amount upto Rs 1 crore.
- Repayment period- Max 7 years including moratorium period.
- SME Smart Score
- Available to small and medium enterprise units engaged in manufacturing, trade or services.
- For manufacturing units the maximum loan amount is Rs 50 lakhs and for trade and services units the total limit is up to Rs 25 lakhs.
- Repayment period 5 years excluding moratorium not exceeding 6 months
- The interest rate is floating rate of interest and is linked to base rate.
Fullerton India
- Maximum Loan up to 30 lakhs without any collateral for self-employed businessman involved in Manufacturing, Trade and service
- Repayment period 12 to 48 months
- Pre-payment facility.
Bajaj Finserv
- Maximum loan amount upto Rs 45 lakhs
- No collaterals or guarantors required.
- Repayment period – 12 to 36 months.
RBl Bank
- Loan amount from Rs. 10 Lakhs upto Rs. 35 Lakhs
- Convenient loan repayment option of 12 to 36 months
- No security or collateral required to avail this loan
- Quick Turnaround Time