10 Best Banks & NBFCs to Apply for Business Loan in India

Whether you're a startup, small business, or established enterprise, choosing the right bank or non-banking financial company (NBFC) for your business loan is essential. In India, a rapidly growing economy, several banks and NBFCs offer attractive loan options tailored to suit the diverse needs of businesses. In this blog post, we will explore the ten best banks and NBFCs that provide business loans in India.

1. SBI Business Loan

Please find details about SBI business loan below -

Who can get SBI Business Loan?

SBI offers business loans to a wide range of entities, including sole proprietorships, partnerships, private and public limited companies, self-employed individuals, and professionals.

SBI Business Loan Interest Rate Range

The interest rates for SBI business loans vary depending on the type of loan and the borrower's credit profile. Generally, interest rates range from 9.65% onwards.

SBI Business Loan Repayment Options

SBI provides flexible repayment options, including term loans with monthly, quarterly, or half-yearly installments, and overdraft facilities with a revolving credit limit.

2. HDFC Bank Business Loan

Please find details about HDFC bank business loan below -

Who can get HDFC Business Loan?

HDFC Bank provides business loans to self-employed individuals, partnerships, private and public limited companies, and professionals.

HDFC Business Loan Interest Rate Range

The interest rates for HDFC Bank business loans depend on various factors, such as the loan amount, tenure, and creditworthiness of the borrower. Typically, interest rates range from 9.50% to 18% onwards. 

HDFC Business Loan Repayment Options

HDFC Bank offers flexible repayment options, including equated monthly installments (EMIs) and overdraft facilities with a flexible repayment schedule

3. Lendingkart Business Loan

Please find details about Lendingkart business loan below -

Who can get Lendingkart Business Loan?

Lendingkart Finance Limited offers business loans to small and medium enterprises (SMEs), including proprietorships, partnerships, private limited companies, and limited liability partnerships (LLPs). They have specific eligibility criteria based on the financial health, creditworthiness, and business vintage of the applicant. 

Lendingkart Business Loan Interest Rate Range

The interest rates for Lendingkart business loans depend on factors such as the loan amount, tenure, and the borrower's credit profile. Generally, interest rates range from 12% to 28% onwards. 

Lendingkart Business Loan Repayment Options

Lendingkart provides flexible repayment options, including monthly or bi-weekly EMIs, which can be paid through NACH, ECS, or direct debit.

4. IIFL (India Infoline Finance Limited) Business Loan

Please find details about IIFL business loan below -

Who can get IIFL Business Loan?

IIFL offers business loans to self-employed individuals, partnerships, private limited companies, and closely held public limited companies. They consider factors such as the business's vintage, financials, and creditworthiness while determining eligibility. 

IIFL Business Loan Interest Rate Range

The interest rates for IIFL business loans depend on various factors, including the loan amount, tenure, and the borrower's creditworthiness. Typically, interest rates range from 13% to 24% onwards. 

IIFL Business Loan Repayment Options

IIFL provides flexible repayment options, including EMIs and customized repayment schedules based on the borrower's cash flow and business requirements.

5. KreditBee Business Loan

Who can get a KreditBee Business Loan?

KreditBee offers business loans to self-employed individuals, sole proprietors, and small business owners. They have specific eligibility criteria based on factors such as the applicant's income, credit history, and repayment capacity. 

KB Business Loan Interest Rate Range

The interest rates for KreditBee business loans depend on various factors, including the loan amount, tenure, and the borrower's creditworthiness. Typically, interest rates range from 18% to 36% onwards. 

KreditBee Business Loan Repayment Options

KreditBee provides flexible repayment options, including EMIs and automated repayments through electronic mandates. It's important to note that KreditBee primarily focuses on personal loans and consumer finance, and their business loan offerings may be limited compared to banks and other NBFCs. It's advisable to contact KreditBee directly or visit their website to gather accurate and up-to-date information about their specific business loan products, eligibility criteria, interest rates, and repayment options.

6. IDFC First Bank Business Loan

Please find details about IDFC First bank business loan below -

Who can get IDFC First Bank Business Loan?

IDFC First Bank offers unsecured business loans for various operational needs to businesses. Collateral or security is not required to obtain a business loan from IDFC First Bank. Existing customers can also avail the Top-Up facility to borrow additional funds over and above the existing loan amount.

IDFC First Bank Business Loan Interest Rate Range

IDFC First Bank offers unsecured business loans of up to Rs. 75 lakh with interest rates starting from 11.69%. The interest rate may vary based on factors such as the loan amount, tenure, and the borrower's creditworthiness.

IDFC First Bank Business Loan Repayment Options

The loan tenor for IDFC First Bank business loans ranges from 12 to 60 months. The processing fee for IDFC First Bank business loans is up to 2.50% of the loan amount.

7. Kotak Mahindra Bank Business Loan

Please find details about Kotak Mahindra bank business loan below -

Who can get Kotak Mahindra Bank business loans?

Kotak Mahindra Bank offers a wide range of collateral-free business loans, catering to various business needs. The application process for Kotak Mahindra Bank business loans is quick, easy, and hassle-free. The bank also provides Funds against Credit Card Receivables (FCCR) with a loan amount of up to Rs. 3 crore. 

Kotak Mahindra Bank business loan Interest Rate Range

Kotak Mahindra Bank provides unsecured business loans of up to Rs. 75 lakh with interest rates ranging from 11.69% to 15%. The interest rate offered may depend on factors such as the loan amount, tenure, and the borrower's credit profile. 

Kotak Mahindra Bank business loan Repayment Options

The repayment tenor for Kotak Mahindra Bank business loans can be up to 48 months. The processing fee for Kotak Mahindra Bank business loans is up to 2% of the loan amount + GST as applicable.

8. Tata Capital Business Loans

Please find details about Tata Capital business loan below -

Who can get Tata Capital Business Loan?

Tata Capital offers unsecured business loans to meet the diverse needs of businesses. These loans can be custom-built as per the specific requirements of the business

Tata Capital Business Loan Interest Rate Range

Tata Capital provides business loans ranging from Rs. 5 lakh to Rs. 50 lakh with interest rates starting from 18%. The interest rate may vary based on factors such as the loan amount, tenure, and the borrower's creditworthiness.

Tata Capital Business Loan Repayment Options

The repayment tenor for Tata Capital business loans can be up to 36 months. The flexible EMI options allow businesses to manage their repayments conveniently. The processing fee for Tata Capital business loans can go up to 2.75% of the loan amount + GST.

9. Fullerton India Business Loan

Please find details about Fullerton India business loan below -

Who can get Fullerton India Business Loan?

Fullerton India primarily focuses on providing financing solutions for small and medium enterprises (SMEs) in India. They offer a wide range of business loans suitable for various business needs.

Fullerton India Business Loan Interest Rate Range

Fullerton India provides unsecured business loans starting from Rs. 10 lakh and going up to Rs. 50 lakh with attractive interest rates starting from 13%. The interest rate offered may depend on factors such as the loan amount, tenure, and the borrower's creditworthiness

Fullerton India Business Loan Repayment Options

The maximum repayment tenure for Fullerton India business loans is 48 months. They provide quick processing and collateral-free loan options, making it convenient for businesses. The processing fee charged by Fullerton India is up to 6.5% of the loan amount + GST, as applicable.

10. Federal Bank Business Loan

Please find details about Federal Bank business loan below -

Who can get a Federal bank Business Loan?

Federal Bank offers Business Loans specifically designed for qualified and licensed professionals such as Doctors, Chartered Accountants, and Architects. These professionals should have a minimum of 4 years of experience in their respective fields to be eligible for the loan. 

Federal Bank Business Loan Interest Rate Range

Federal Bank offers competitive interest rates for their Business Loans. The interest rates are linked to the Marginal Cost of Funds Based Lending Rate (MCLR) and may vary based on the repayment tenor chosen by the borrower. Federal Bank business loan is offered at attractive rate of interest ranging between 9.20% to 16% p.a.

Federal Bank Business Loan Repayment Options

Federal Bank provides a longer repayment tenor of up to 84 months for their Business Loans. Borrowers can repay the loan through Equated Monthly Installments (EMIs) over the chosen repayment tenor.

FAQs Related to Best Banks to Apply for Business Loans in India

✅ Who is eligible to apply for a business loan from banks and NBFCs?

Banks and NBFCs generally offer business loans to various entities, including sole proprietorships, partnerships, private limited companies, limited liability partnerships (LLPs), and self-employed individuals. Eligibility criteria may vary among lenders and may consider factors such as the business's vintage, financial stability, and creditworthiness.

✅ What is the interest rate range for business loans offered by banks and NBFCs?

The interest rates for business loans vary among banks and NBFCs and are influenced by factors such as the loan amount, tenure, and the borrower's credit profile. Generally, interest rates can range from around 10% to 30% or more, depending on the lender and the borrower's risk profile.

✅ How much loan amount can I get for my business?

The loan amount offered by banks and NBFCs depends on various factors, including the nature of your business, financials, repayment capacity, and the specific loan product. Generally, business loans can range from a few lakhs to several crores of rupees, depending on the lender's policies and your eligibility.

✅ What is the repayment period for business loans? 

The repayment period for business loans can vary among lenders and is influenced by factors such as the loan amount and the borrower's repayment capacity. Typically, the repayment tenure ranges from 12 months to 5 years or more, depending on the lender and the borrower's requirements.

✅ How can I repay the business loan?

Banks and NBFCs usually offer various repayment options for business loans. Commonly, borrowers can repay through Equated Monthly Installments (EMIs) or customized repayment schedules based on the borrower's cash flow. Repayments can be made through methods such as Electronic Clearing Service (ECS), National Automated Clearing House (NACH), or direct debit.

✅ What documents are required to apply for a business loan?

The documentation requirements may vary among lenders. However, some common documents required for a business loan application include identity proof, address proof, business registration documents, financial statements, bank statements, income tax returns, and KYC documents of the business owners or partners.

✅ What are the processing fees and other charges associated with business loans?

Banks and NBFCs typically charge a processing fee for business loans, which is a percentage of the loan amount. The processing fee can vary among lenders and may range from 1% to 3% or more. Additionally, there may be other charges such as prepayment penalties, late payment fees, and documentation charges. It's important to review the loan terms and conditions to understand all associated fees and charges.