Apply for Business Loan at Lowest Interest Rate
BUSINESS LOAN
Personal Loan
Home Loan
Car Loan
Loan Against Property
How Do Business Loans Function?
Compare Banks by their Interest Rates
| Name of the Bank/NBFC | Interest Rate | Loan Amount | Tenure | Processing Fee |
| ICICI Bank Personal Loan | 10.75% p.a. onwards | Up to INR 50 Lakhs | Min:- 1 Year Max:- 6 Years | Up to 2.5% of the Loan Amount |
| Kotak Mahindra Bank Personal Loan | 10.99% p.a. onwards | Up to INR 25 Lakhs | Min:- 1 Year Max:- 5 Years | Up to 3% of the Loan Amount |
| Axis Bank Personal Loan | 10.25% p.a. onwards | Up to INR 40 Lakhs | Min:- 1 Year Max:- 5 Years | Up to 2% of the Loan Amount |
| IDFC First Bank Personal Loan | 10.49% p.a. onwards | Up to INR 1 Crore | Up to 5 Years | Up to 3.5% of the Loan Amount |
| HDFC Bank Personal Loan | 11% p.a. onwards | Up to INR 40 Lakhs | Up to 6 Years | Up to INR 4999 |
| Yes Bank Personal Loan | 10.99% p.a. onwards | Up to INR 40 Lakhs | Min:- 1 Year Max:- 5 Years | As per the Bank’s Norms |
| Bajaj Finserv Personal Loan | 13% p.a. Onwards (Salaried) 17% p.a. Onwards (Non-Salaried) | Up to INR 25 Lakhs (Salaried) Up to INR 45 Lakhs (Non-Salaried) | Up to 5 Years (Salaried) Up to 7 Years (Non-Salaried) | Up to 4% of the Loan Amount |
| Tata Capital Personal Loan | 10.99% p.a. onwards | Up to INR 35 Lakhs | Up to 6 Years | Up to 2.75% of the Loan Amount |
| Aditya Birla Finance Personal Loan | 13% p.a. onwards | Up to INR 50 Lakhs | Up to 7 Years | Up to 3% of the Loan Amount |
| Incred Personal Loan | 11.49% p.a. onwards | Up to INR 15 Lakhs | Up to 7 Years | As per the Bank’s Norms |
| Paysense Personal Loan | 2.3% onwards per month | Up to INR 4 Lakhs | Up to 540 Days | Up to 3% of the Loan Amount |
| Finnable Personal Loan | 16% p.a. onwards | Up to INR 10 Lakhs | Min:- 6 Months Max:- 5 Years | Up to 4% of the Loan Amount |
| Upward Personal Loan | 18% p.a. onwards | Up to INR 7 Lakhs | Up to 5 Years | As per the Company’s Norms |
| Finzy Personal Loan | 18% p.a. onwards | Up to INR 5 Lakhs | Up to 3 Years | Up to 5% of the Loan Amount |
| Ashv Finance Personal Loan | 18% p.a. onwards | Up to INR 7 Lakhs | Min:- 2 Year Max:- 5 Years | As per the Company’s Norms |
| AU Small Finance Bank Personal Loan | Up to 30% per annum | Up to INR 7.5 Lakhs | Min:- 1 Year Max:- 5 Years | Up to 5% of the Loan Amount |
| IndusInd Bank Personal Loan | 10.49% p.a. onwards | Up to INR 25 Lakhs | Min:- 1 Year Max:- 5 Years | Up to 3% of the Loan Amount |
| Fullerton Personal Loan | 11.99% p.a. onwards | Up to INR 30 Lakhs | Up to 5 Years | Up to 6% of the Loan Amount |
| RBL Bank Personal Loan | 17.50% p.a. onwards | Up to INR 20 Lakhs | Min:- 1 Year Max:- 5 Years | Up to 2% of the Loan Amount |
| Home Credit Personal Loan | 2% onwards per month | Up to INR 5 Lakhs | Min:- 6 Months Max:- 4 Years | Up to 5% of the Loan Amount |
| Citibank Personal Loan | 10.75% p.a. onwards | Up to INR 30 Lakhs | Min:- 1 Year Max:- 5 Years | Up to 2% of the Loan Amount |
| Ujjivan Small Finance Bank Personal Loan | 11.49% p.a. onwards | Up to INR 10 Lakhs | Up to 5 Years | Up to 2% of the Loan Amount |
| Standard Chartered Bank Personal Loan | 11.49% p.a. onwards | Up to INR 50 Lakhs | Up to 5 Years | Up to 2.25% of the Loan Amount |
| Punjab National Bank Personal Loan | Up to 15.85% per annum | Up to INR 20 Lakhs | Up to 5 Years | Up to 1% of the Loan Amount |
| SBI Personal Loan | 10.30% p.a. onwards | Up to INR 20 Lakhs | Up to 6 Years | Up to 1.5% of the Loan Amount |
| Bank of Baroda Personal Loan | Up to 17.05% per annum | Up to INR 20 Lakhs | Up to 6 Years | Up to 2% of the Loan Amount |
| Bank of India Personal Loan | 12.75% p.a. onwards | Up to INR 20 Lakhs | Up to 3 Years | Up to 2% of the Loan Amount |
| IDBI Personal Loan | Up to 14% per annum | Up to INR 5 Lakhs | Min:- 1 Year Max:- 5 Years | Up to 1% of the Loan Amount |
| Union Bank of India Personal Loan | 10.30% p.a. onwards | Up to INR 15 Lakhs | Up to 5 Years | Up to 1% of the Loan Amount |
| IIFL Personal Loan | 14.25% p.a. onwards | Up to INR 5 Lakhs | Up to 3 Years | As per the Company’s Norms |
Types Of Business Loans
There are different types of business loans that you can take for the growth of your business. Here are the types of business loans:
Working Capital Loan
A working capital loan is a type of financing that enables a business to cover its daily operational expenses. Business owners cannot use this loan to invest in long-term assets but to provide the working capital to cover the short-term operational needs of the business. For example, the cost of payroll, rent, debt payments, etc.
Term Loans
A term loan is a loan that needs to be repaid in EMIs over a set period of time. There are three types of term loans, short-term, intermediate-term, and long-term loans. Short-term loans have a duration of 12 months, whereas repayment tenure for intermediate-term and long-term loans ranges between 1 to 5 years.
Equipment Financing
Equipment finance is also known as machinery loan. It is a funding option offered to the borrowers to buy new pieces of equipment or machinery for their business. Mainly large businesses engaged in the manufacturing sector opt for this loan. Business owners can also enjoy tax benefits that come with this loan.
Overdraft Facility
An overdraft facility is a type of loan that allows a business to withdraw more money than is available in their account. This type of loan is used to cover short-term cash flow needs, such as paying for unexpected expenses or funding an expansion project. The overdraft facility is usually offered to businesses that have a good credit history and a steady revenue stream. The interest rate on overdraft facilities is typically higher than other types of loans, and businesses are usually required to pay interest only on the amount they have borrowed.
Letter Of Credit
A letter of credit is a financial document that guarantees the payment of a transaction between two parties. It is issued by a bank or lender on behalf of a buyer, promising the seller that payment will be made once the conditions of the transaction have been met. The letter of credit provides security to both the buyer and seller, as the seller can be sure they will receive payment as long as they meet the agreed-upon conditions, and the buyer knows that their payment will only be made once the goods or services have been delivered as per the agreement.
What Is The Business Loan Eligibility Criteria?
Here are the eligibility criteria for taking a business loan:
- To take a business loan from Myzeon you should have a specific type of business like a self-proprietorship business, partnership business, public or private limited companies, and businesses that provide services.
- Lenders require your business to have a vintage of 6 months to up to 3 years.
- The minimum turnover requirement of the business depends on the lenders. If the minimum specified limit of the lender is met by the borrower, then you will be eligible for the loan.
- Your minimum annual profit should meet the minimum limit set by the lenders.
- The minimum age of the applicant should be above 21 years.
- The credit score plays a vital role when you are sanctioning a loan. The businesses should have a minimum credit score of 650 and above to qualify for a business loan.
What Documents Are Required For A Business Loan?
Businesses need to submit some documents in order to take a business loan. Just like the eligibility criteria, the documentation process can also vary from lender to lender. Some of the documents required for a business loan are:
- Passport/ Aadhaar card/ Driving license/ PAN card/ Voter’s ID card as proof of your identity.
- Bank statements for the last 3 to 6 months, income tax returns for the last 2 to 3 years, balance sheet, and profit and loss account of the company.
- Trade license, GST registration certificate, and establishment certificate for showing business proof.
- Depending on the type of business, declaration of the sole business ownership and certified true copy of partnership contract.
- UDYAM registration certificate of the business.
How Can You Apply for a Business Loan Online?
Applying for a business loan online is more easy to use than physically going to the bank or financial institution and applying for a loan. Here are some simple steps that can help you apply for a business loan online:
- Analyze the need for which you are taking a business loan. It can be to cover the costs for machinery, payroll, rent payments, etc.
- Research and compare different lenders of financial institutions that are offering business loans at lower interest rates. Choose a best lender that fulfil your needs without causing financial loss.
- Also, check the loan tenure lenders are offering for the loan and the maximum loan amount that you can take from them.
- Business loans include many charges such as processing fees, documentation charges, cheque dishonor charges, cancellation charges, etc. Make sure to read the terms and conditions carefully and attentively before applying for a business loan.
- Fill out the application form online from the official website of the chosen lender. Before you submit the online application, double-check your personal details.
What are the Features of a Business Loan?
There are many features and benefits of taking a business loan.
- Convenience and accessibility: You can easily apply for business loans online anytime and anywhere. It provides flexibility for business owners who may not have the time during banking hours. The loan application process can be done online eliminating the need for physical visits to banks or financial institutions.
- Fast processing: Applying for a business loan online is a hassle-free process. You can fill out the application form from the comfort of your home or office, without having to visit the lender’s office. Online business loan applications allow quick approval and disbursement of funds through their streamline processes.
- Flexible loan options: Online lenders may offer various types of loans, including term loans, lines of credit, and equipment financing, allowing businesses to choose the option that best suits their needs.
- Quick Approval: Online business loans are approved much faster than traditional loans. You can get the funds you need within a few days, or even hours in some cases.
- No Collateral Required: Many online lenders offer unsecured business loans, which means you do not need to put up collateral to secure the loan.
FAQs
You should consider getting a business loan for several reasons:
Capital Investment: It provides the necessary funds to start or expand your business, allowing you to purchase equipment, inventory, or hire additional staff.
Cash Flow Management: A loan can help smooth out cash flow fluctuations, ensuring you have enough working capital to cover operational expenses, especially during slow periods.
Expansion and Growth: If you’re looking to grow your business, a loan can be used to open new locations, enter new markets, or launch new products or services.
Equipment and Technology Upgrades: Loans can be used to invest in updated technology and equipment, helping you stay competitive and efficient.
Marketing and Advertising: Securing a loan can provide the necessary funds to implement effective marketing campaigns, helping you reach a wider audience and generate more revenue.
Yes, it is possible to raise the credit limit for a business loan. This can be achieved through several methods:
Positive Payment History: Consistently making on-time payments for existing loans and credit lines can build trust with lenders, increasing the likelihood of a credit limit increase.
Demonstrated Business Growth: Showing evidence of steady revenue and business growth can instill confidence in lenders and lead to a credit limit increase.
Requesting a Review: Contacting your lender and formally requesting a credit limit increase is a common way to explore this possibility. Be prepared to provide updated financial information and a compelling case for the increase.
Improved Credit Score: If your business’s credit score has improved since the initial loan was approved, it may be a strong indicator that you can handle a higher credit limit.
Utilization Ratio: Maintaining a low utilization ratio (the amount of credit used compared to the total available) can signal responsible financial management and make a strong case for a credit limit increase.
2.5% business loan fees refer to the cost associated with borrowing money for business purposes.It represents a percentage of the total loan amount that a lender charges as a fee for providing the funds.
Business Plan: This outlines your business goals, financial projections, and strategies for growth.
Personal Identification: Such as driver’s license or passport, to verify your identity.
Business Registration Documents: These include your business license, articles of incorporation, or other legal paperwork.
Financial Statements: Including balance sheets, income statements, and cash flow statements to demonstrate your business’s financial health.
Tax Returns: Both personal and business tax returns for the past few years.
Yes, offering security, such as collateral or a personal guarantee, can significantly increase your chances of being approved for a business loan. It provides the lender with a level of assurance that if you’re unable to repay the loan, they can recoup their losses by claiming the pledged asset. However, not all business loans require security. Some lenders offer unsecured loans, but they typically have stricter eligibility criteria and may come with higher interest rates.
There are several methods available for loan repayment, depending on the type of loan and the terms agreed upon with the lender. Here are some common methods:
Standard Repayment Plan: This is the most straightforward method where you make fixed monthly payments over the life of the loan. The amount is calculated to ensure the loan is paid off within the agreed-upon term.
Graduated Repayment Plan: Payments start lower and increase gradually, typically every two years. This is beneficial for individuals who expect their income to increase over time.
Income-Driven Repayment Plans: These plans adjust your monthly payments based on your income and family size. Examples include:
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- Revised Pay As You Earn (REPAYE)
- Income-Contingent Repayment (ICR)
Extended Repayment Plan: This plan allows you to extend the repayment period beyond the standard term, which can lower your monthly payments.
Income-Sensitive Repayment Plan: This is specific to Federal Family Education Loan (FFEL) Program loans. It adjusts your monthly payment based on your annual income.
