Are you looking for funding regarding working capital? Do you need money to get the equipment you need? Are you looking to expand your business? Business owners need a business loan in order to access funds for such critical needs. But, before you go to a bank and apply for a loan, you need to choose the right bank for the same. In fact, many banks have a different type of loan that is suitable for different industries.
Here, we have come up with the best banks to apply for a business loan:
hdfc bank business loan
The maximum amount you can borrow is Rs. 50 lakhs with a tenure of between 12 to 48 months. The minimum amount for this business loan is Rs. 75,000. The interest rate starts from 15%. While you will not expect any prepayment before paying the EMI for six months.
State Bank Of India Business Loan
SBI is capable of giving business loans not only to large companies but also to SMEs. Also, you can expect both secured and unsecured lending. There are many other loan schemes that the government has provided. For example, these are schemes like Stand-up India, PM Mudra Yojana, CGTMSE and PMEGP. So, if you are applying for a business loan, you must study each and every scheme and choose the best one.
In case of CGTMSE the interest rate is lowest i.e. 8.25%. However, the bank is able to offer asset-backed loans starting from 10.70%.
Bajaj Finserv Business Loan
Bajaj Finserv Rs. 1 lakh to Rs. 40 lakhs. So, for processing fee, they will charge you 3% of the amount you want to lend. The interest rate starts from 15% and goes up. For any amount of your business loan, the tenure can be between one to five years. Apart from this, you can also take a pre-approved loan. In addition, you can find many special loans for SMEs, doctors and engineers.
Fullerton Finance
Business loan from this bank is available for an amount between Rs. 1 lakh to Rs. 50 lakhs. For this the interest rate can go beyond 19 per cent. The tenure of the loan you have applied for can range between 12 to 48 months. The age eligibility criteria for this is between 27 to 65 years. Also the business vintage should have a minimum shelf life of three years.
Apart from this, there are other schemes for the self-employed. Apart from this, there are many special loans for chartered accountants, doctors, women etc. Apart from this, you are getting the facility of foreclosure and prepayment.
IIFL Finance Business Loan
This business loan is ideal for Sole Proprietorship Firms, Partnership Firms, Private Limited Companies and business of trading, construction etc. Also, the business loan amount is Rs. 1 lakh to Rs. 7.5 lakhs. The tenure for this ranges between 12 to 36 months.
Also, the interest rate starts from 25%. Whereas, for processing fees, you have to pay 3% of the amount to be borrowed.
Tata Capital Finance Business Loan
The amount you can borrow is between Rs. 3 lakh Rs. 50 lakhs. Also, the tenure of the loan amount ranges from 12 months to 36 months. However, interest rates start at 17% and go up. This financial institution is capable of giving SME and MSME loans, machinery loans and capital loans. In terms of eligibility, your company should have a business vintage of at least 3 years. In addition, it is important to have consistent profits and growth for the past two years.
rbl bank business loan
Looking for small amount with suitable tenure? RBL Bank can offer you this type of business loan. The loan amount ranges from Rs. 2.5 lakh to Rs. 2 million. The tenure for this ranges between 12 months to 36 months. Interest rates start at 16%. Not only secured but unsecured business loans are available. The eligibility criteria for age can be from 27 to 65 years. Firms like Sole Proprietorship, Private Limited, Professional and Partnership are able to avail this loan.
Therefore, before applying for a business loan, you should consider factors other than the interest rate. In fact, it is important for you to understand your needs. Choose the most suitable plans. As a business owner, you should know that money saved is money earned. Hence, choosing the right bank involves choosing the right plans. We hope you find these helpful and be able to decide which loan to go for.
