Owning your own business or making it bigger is everyone’s dream, for this purpose you can take a business loan for their financial assistance. It is a kind of debt which you need to pay back with interest in a fixed tenure. You can compare the loan interest of Banks and NBFC s online. So here we will give a list of best business loan providers in 2019.
| Bank/ NBFC Name | Interest Rate | Processing Fee |
| ICICI Bank | 16.49% | 0.99%-2.00% |
| Yes Bank | 16.25% | Up to 2.00% |
| Indiabulls Bank | 14.00% | Up to 1.00% |
| Fullerton India | 16.00% | 2.00% |
| TATA Capital | 18.00% | 1.50%-2.50% |
| Yes Bank | 16.25% | Up to 2.00% |
| IDFC | 16.00% | Up to 2.00% |
| SBI Business Loan | 11.20% | 2.00%-3.00% |
| United Bank of India | 13.00% | 1.15% |
| PNB | 12.65% | 1.8%+ Tax |
Types of Business Loan in India
- Overdrafts
- Term Loans
- Demand Loans
- Cash Credit
- Letter of Credit
- Bill or invoice discounting
- Business Loan for women
- Bank Guarantee
Business Loan Eligibility Criteria
- Age limit- Minimum age limit for the business person will be 21 years and Maximum age limit is 65 years.
- Applicant should have minimum 5 years of experience in the business.
- Applicant must have minimum 3 years of experience in the current business.
- Business turnover should be a minimum of Rs. 40 lakhs.
- The ITR report should be of a minimum of Rs. 1.5 lakhs per annum.
- Last 2 year must experience profit to the business.
- Following entities will be eligible for a business loan- Private Limited Companies, Partnerships, Limited liability partnership, closely held Limited Companies.
Self-Employed Professionals
The applicants are practicing professionals with proper qualification proof and under the categorization of CA, Doctor, architect etc.
Compulsory Testimonials for Business Loans
- ID proof of the applicant- AADHAR card, PAN card, Voter ID card.
- Residence proof- Utility Bills like Electricity bill, Gas bill.
- PAN card of the company.
- Bank Statement for the last 6 months.
- An approved copy of the Partnership Deed.
- Verified copy of Memorandum and Articles of Association.
- Business continuation proof- Sales Tax Certificate, Trade License.
- Copy of ITR file for last three years.
- Balance Sheet, Computation of Income, Profit and Loss statement for the last 2 financial years.
- Age limit- Minimum age limit for the business person will be 21 years and Maximum age limit is 65 years.
Self-Employed Professionals
The applicants are practicing professionals with proper qualification proof and under the categorization of CA, architect etc.
Benefits and Features of Business Loan
- You can borrow from minimum 1lakh to 1crore.
- The repayment option is flexible.
- You only can use this money for your business related purpose.
- The repayment time of a business loan from 6 months to 60 months.
- The documentation is minimal and if you apply online it is paperless too.
- There are so many options in loan amount and tenure based on your company size for you to choose.
- The interest rate is low it starts from 13%
- You can have co-applicant to get your loan easily.
