One can take business loan to start a new project, expand the current business to a new location, and buy new equipment, purchase office space and assets.
With the current state of business financing, it can be harder than usual to get a business loan. Fortunately, few lenders still seem to be going strong, and some of them let you use your loan for business reasons. So if the brands in this guide don’t work for you, consider a personal loan instead.
1. HDFC Bank Business Growth Loans
HDFC Bank offers business loans up to Rs. 40 Lakhs (Rs. 50 lakhs in select locations) without any collateral, guarantor, or requirement of security.
The business loan is for self-employed individuals, proprietors, partnership firms and companies involved in the business of manufacturing, services, or trading.
The HDFC business loan comes with special benefits such as overdraft facility and flexible tenure options of up to 48 months.
- Minimum turnover of the business must be Rs. 40 lakhs.
- Last two years of the business must be the profit-building years.
- Rs. 1.5 lakhs must be the minimum annual income of the business as per ITR.
- Minimum experience of individuals in business must be 5 years, with 3 years in the current business.
On business loans, the minimum interest rate charged by HDFC bank is 11.90%, and the maximum is 21.35%.
2. SBI Simplified Small Business Loan
SBI business loans is a facility for the MSME business. The main aim of the SBI simplified small business loans is to help the small businesses in building their current assets and fixed assets.
The minimum amount of loan that could be taken by the MSME businesses is Rs 10 Lakh, while the maximum amount for the same is Rs. 25 lakh. The interesting thing about the SBI simplified small business loans is that it requires 40% of the collateral security and the interest of it is linked to the MCLR (Marginal Cost of Funds based Lending Rate).
The eligibility criteria for SBI simplified small business loan include
- 5 years of business existence
- Current account at any bank for the last 2 years
- Minimum average monthly balance of Rs. 1 Lakh
3. IDFC First Bank Business Loans
The best thing about IDFC first bank is that it helps you with the business loans even for equipment purchases, business upgrades or any other business needs. But the thing to be kept in mind regarding the IDFC business loan is that you will have to pay it back in equal installments with fixed monthly intervals. Therefore, the loan is termed by the bank as Business Installment Loans (BIL).
- The Business Installment Loans is available not only for the businesses but also for professionals and non-professionals.
- It is an unsecured loan requiring no collateral or security.
- The loan amount in IDFC first bank depends upon the kind of business, repayment capability and income.
- The interest rate is given by the bank on the day of loan processing only.
- For getting a BIL loan from IDFC bank, your business must be of 3 years.
IDFC first bank business loan is best for those who are in search of unsecured loans.
4. Citi Banks Business Loans
CitiBusiness offers you an array of business loans for efficient working capital management. You can avail various MSME Loan Products such as Working Capital Loans, Overdrafts, Short and Long Term Loans, Import and Export Finance that are specially designed to meet all your financing requirements and fuel your business growth.
CitiBank offers business loans as working capital loans, overdrafts, short-term & long-term loans, and import/export finance.
However, CitiBank does not disclose the loan amount, rate of interest and the tenure upfront on its website. You will get to know at the time of loan application processing.
You need to pay a 2% processing fee on the loan amount sanctioned. Also, there are loan pre-closure charges (2%) and renewal fees (2%) associated with the business loan.
5. Axis Bank Business Loan
Axis bank is popular for its convenient services and various facilities it offers to its customers. The amount of business loan that you can avail from Axis Bank is Rs. 50 lakh (maximum), with no amount of collateral.
Axis Bank offers business loans to professionals like doctors, engineers and CAs to purchase equipment, office space and expand their practice.
The business loan amount offered is up to Rs. 50 Lakhs with no requirement of collateral.
To be eligible for Axis Bank loan your business should
- Be at least 3 years old and running
- Have a minimum annual turnover of Rs. 30 Lakhs
- You are in the age group of 21 to 65 years
- The interest rate is fixed by the bank based on your business profile, financial assessments, past track record, and tenure.
- The indicative rates for business loans in the past were ranging from 10.75% to 21%.