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.
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Table of Contents
Details Of Business Loan Interest Rate
| Interest Rate | 13.50% onwards |
| Processing Fee | Up to 3% of the loan amount |
| Loan Tenure | Up to 5 years |
| Lowest EMI per lakh | ₹ 2,301 for 5 years |
Business Loan Interest Rate
| Bank | Business Loan Interest Rates | Processing Fee |
| SBI business loan | 11.20% | From 2% – 3% |
| HDFC Bank Business Loan | 15.65% | From 0.99%-2.50% |
| ICICI Bank Business Loan | 16.49% | From 0.99%- 2% |
| Citibank | 16.00% | Upto 2% |
| RBL Bank | 16.25% | 1.80-2.20% of loan amount |
| Tata Capital | 19.00% | From 1.50%-2.50% |
| Lendingkart | 12.00% | 2% of the loan amount |
| Bajaj Finserv | 18.00% | Up to 2% of loan amount |
| IDFC First Bank | 22.00% | 2.00% |
| IIFL | 16.00% | Up to 2% |
| Bank of Maharashtra | 14.50% | 1.00% of loan amount, Min Rs. 1,000 |
| IndusInd Bank | 14.00% | 2.50% |
| Kotak Bank | 16.00% | Up to 2% |
| Fullerton India | 17.00% | 2% |
| Indfi | 24.00% | 2 to 3% |
| Neogrowth | 19.50% | 2.5% of loan amount |
| IDBI Bank | 12.25% | 1.00% |
| Allahabad Bank | 11.15% | Rs. 229 – per lac, Min Rs. 2,038 Max Rs. 22,928 |
| Yes Bank | 16.25% | Up to 2% |
| PNB | 12.65% | 1.8% + taxes |
| OBC | 11.40% | 0.50% of Loan Amount |
| Indian Overseas Bank | 14.90% | Rs. 204 per lakh |
| Dhan Laxmi Bank | 12.90% | – |
| DCB Bank | 10.70% | 2% |
| Andhra Bank | 15.75% | Case to Case |
| United Bank of India | 13.00% | 1.15% |
| Corporation Bank | 13.55% | 1.5%, Min Rs. 500 |
| Syndicate Bank | 12.65% | 0.5%, Min Rs. 500 |
| Bank of Baroda | 14.10% | Up to 1.00% |
Documents Required For Business Loan
- Address Proof that can be
- Aadhar Card
- PAN
- Voter identity card
- Valid driving license
- Ration Card etc.
- 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.
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.
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.
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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CA Shivam Channa is a trusted financial writer with deep knowledge of financial systems. He has over 10 years of experience in writing His articles are always well researched and provide great insights into the topic at hand.