Business Loan Interest Rate | Charges, Processing Fee, Compare- Check Details

To grow the business effectively and efficiently, every business requires good funds. A business loan is the best way to get funds for the business.  There are banks and non-banking financial institution which offers a Business Loan. If we talk about the Business Loan Interest Rate, it varies from lender to lender and business to business.

We are providing the details of the interest rate of business loan by various banks and other institutions like SBI, HDFC, ICICI, IDFC Kotak Bank Neogrowth, and others. The details of Charges, Processing Fee, has also been provided by us. You can compare the loan interest by going through below provided table. Check details by scroll down the page.

Details Of Business Loan Interest Rate

Interest Rate13.50% onwards
Processing FeeUp to 3% of the loan amount
Loan TenureUp to 5 years
Lowest EMI per lakh₹ 2,301 for 5 years

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Business Loan Interest Rate

BankBusiness Loan Interest RatesProcessing Fee
SBI business loan 11.20%From 2% – 3%
HDFC Bank Business Loan15.65%From 0.99%-2.50%
ICICI Bank Business Loan16.49%From 0.99%- 2%
Citibank16.00%Upto 2%
RBL Bank16.25%1.80-2.20% of loan amount
Tata Capital19.00%From 1.50%-2.50%
Lendingkart12.00%2% of the loan amount
Bajaj Finserv18.00%Up to 2% of loan amount
IDFC First Bank22.00%2.00%
IIFL16.00%Up to 2%
Bank of Maharashtra14.50%1.00% of loan amount, Min Rs. 1,000
IndusInd Bank14.00%2.50%
Kotak Bank16.00%Up to 2%
Fullerton India17.00%2%
Indfi24.00%2 to 3%
Neogrowth19.50%2.5% of loan amount
IDBI Bank12.25%1.00%
Allahabad Bank11.15%Rs. 229 – per lac, Min Rs. 2,038 Max Rs. 22,928
Yes Bank16.25%Up to 2%
PNB12.65%1.8% + taxes
OBC11.40%0.50% of Loan Amount
Indian Overseas Bank14.90%Rs. 204 per lakh
Dhan Laxmi Bank12.90%
DCB Bank10.70%2%
Andhra Bank15.75%Case to Case
United Bank of India13.00%1.15%
Corporation Bank13.55%1.5%, Min Rs. 500
Syndicate Bank12.65%0.5%, Min Rs. 500
Bank of Baroda14.10%Up to 1.00%

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Documents Required For Business Loan

  • Identity Proof
  • Aadhar Card
  • Driving Licence
  • PAN
  • Passport etc
  • Proof of Business
  • PAN
  • Trade License
  • Registration Certificate
  • GST Registration
  • Lat 24 months copy of Income Tax Returns and PAN
  • Lat 12 months copy of Bank Statement

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Factors Affecting Interest Rates Of Business Loan

Type of Lender:

There are numerous lenders in the market which provides loan at the various rates, the interest rates of all the lenders are different, but about near to each other. But if you will compare the business loan of banks and NBFCs, then, in that case, the rate of interest offered by the bank is much less than the Non-bank financial institution.

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Existence Of Business:

It also depends on the life of your business, if your business is existing in the market for the years then you can get the loan at the lower interest rates, and it is mandatory to have a business operation of 2 years to apply for some business loans.

Startup India Scheme 

Monthly Turnover:

Monthly Turnover also plays an important role in deciding your worthiness to get a business loan. If you have a good turnover, then the lending party can offer you good business loan offers.

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Collateral:

To take a loan, individuals have to deposit Collateral (security) to get the loan. If your collateral has more value, then you will get a great offer. The lender will agree the appropriate amount of loan after checking the collateral.  

Nature of Business:

It is one of the key factors which determines the rate of interest; generally, the lenders provide the business loan under the two sectors that are Priority Sector and Non-Priority Sector. If we talk about the Priority Sector, then the Business Loan Interest Rate is less as compared to the Non-Priority Sector. So your nature of the business also decides the loan interest rate.

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