Top Financial Institutions for the Business Loan

It is quite hectic to find the best financial institution for a business loan among many of them. So we have gathered here the best banks and NBFCs that grant business loans at an affordable interest rate and a long tenure.

As you can see the list of all the major banks that grant a loan for your business. So, it is easy for you to make a final choice. You can explore other details of these lending intuitions and see the uniqueness of all of them.

HDFC Bank Business Loan

These are some of the top features of HDFC Bank Business Loan, read them to know more -

• HDFC Bank grants loans for business to Proprietors, Self-employed, Private Limited Companies, and Partnership Firms.
• Any type of business whether Trading, Services, or Manufacturing can take the business loan from the HDFC bank.
• You can take a business loan without an ITR of up to Rs.20 Lacs by presenting 12 12-month banking statements and a vintage of 3 years.
• HDFC Bank usually grants a loan for business within 4 to 5 working days.
• The minimum turnover of the business must be Rs.40 Lacs and the minimum age of the Applicant must be 21 years.
• You can also take a loan with no guarantor or security required.
• Senior citizens get a 10% discount on service charges.

Axis Bank Business Loan

Here are some of the top features of Axis Bank Business Loan, check the content below-

• Axis Bank offers collateral-free business loans up to Rs.75 lakh.
• Apply at the nearest branch for quick sanction with minimal documentation.
• The Eligibility for Axis Bank Business vintage is 3 years and the turnover should be Rs.30 lakh.
• The minimum age of the applicant should be 21 years to 65 years.
• Axis Bank offers collateral-free business loans up to Rs.75 lakh.

ICICI Bank Business Loan

These are some of the top features of ICICI Bank Business Loan, check the content below-

• ICICI Bank grants business loans to Sole Proprietorships, Partnerships, Pvt. Ltd. & Public Ltd. Companies
• Get loans up to Rs.1 Cr based on transaction history, with no audited financials required and a minimum of 3-year vintage.
• You can get an ICICI Bank business loan collateral-free loan up to Rs.50 lakh at 15% p.a. interest.
• Get Cash Credit & Term Loans up to Rs.2 Crore under CGTMSE.

Kotak Mahindra Bank Business Loan

Check for the top features of Kotak Mahindra Bank Business Loan -

• Kotak Mahindra Bank provides business loans to a Sole Proprietor, Partnership, Pvt. Ltd. Co., Trust, or LLP in Manufacturing, Trading, or Services.
• The applicant can get a business loan without submitting the ITR if the applicant must have 3 years in business with a minimum turnover of Rs.40 lakh.
• The applicant should be of minimum age and not above 65 years of age.

IDFC First Bank Business Loan

Below there are several IDFC First Bank Business Loans -

• IDFC First lends loans for businesses to Sole Proprietors, Partnership Firms, Private Limited Companies, Doctors, and Self-Employed individuals.
• You can take a loan from IDFC Bank without submitting an income tax return document of up to Rs.10 Lacs.
• The Documentation Process is also less and it sanctions the loan within 4 to 5 working days.
• The eligibility criterion is confirmed in 5 minutes by the bank.
• There is no need for security or collateral.

LendingKart Business Loan

Below are the Lendingkart Business loan details-

• Lendingkart needs a minimum turnover of Rs.90,000 in 3 months before the loan is applied.
• You can take a loan from Rs. 10,000 up to Rs. 10 crore or more without submitting an ITR document.
• The applicant should be 22 years old at the time of applying for the loan.
• Proprietorship Firms, Partnership Firms, LLP, OPC, and Pvt. Ltd. Companies can apply for the loan.
• The business loans are available at an affordable rate of interest.
• You will get the loan sanctioned within 3 working days, if you fulfill all the eligibility criteria.

Bajaj Finserv Business Loan

The top features of Bajaj Finserv Business Loan are here, read to know more -

• Grants quick business loans for business expansion.
• You can take a collateral-free loan for your business.
• Apply for a loan for your business without an ITR of up to Rs.50 Lacs, which will depend on the applicant's credit profile.
• Get your loan amount into your account within 48 hours.
• A flexi-loan facility is also available in Bajaj Finserv Loan for business.

Tata Capital Business Loan

Here are several Tata Capital Business Loans, read to understand better -

• Tata Capital allows you to customize the EMIs of the loan that is taken for the business.
• There is no need for any collateral to take the loan.
• Get a loan of up to Rs.20 Lacs by submitting the previous 2-year ITR.
• Get your loan into your account within 6 to 7 working days.
• The flexibility of choosing the tenure for the business loan.

Aditya Birla Capital Business Loan

Some features of Aditya Birla Capital Business Loan are here, read to understand better -

• Choose the tenure of the loan as per your suitability.
• Apply online for the loan without visiting the branch.
• There is no need for any security to take the loan.
• 1-year business vintage proof and 1-year bank statement is needed to take the loan.
• Aditya Birla usually lends loans within 6 to 7 working days.

Hero Fincorp Business Loan

Below are some features of Hero Fincorp Business Loan, read to understand better -

• Hero Fincorp gives unsecured loans for your business.
• The loan is available at an affordable rate of interest.
• The Loan for Business is disbursed within 6 to 7 working days.
• Flexibility of choosing the term for the loan.
• You can apply for the loan online and there is less formality.

Business Loan Eligibility Criteria

Before taking any business loan, an individual wants to know whether he is eligible to take a loan or not. So, you must see the eligibility criteria before taking any loan for your business expansion.

• The minimum age for taking a business loan is 18 years and it will depend on the financial institutions.
• The maximum age for taking a business loan is 65 years and it will depend on the financial institution.
• Self-employed professionals and self-employed non-professionals are eligible to take the loan.
• Doctors, Chartered Accountants, Company Secretaries, Architects, etc. are self-employed professionals and have to prove their eligibility with their qualification certificates.
• Traders and Manufacturers are included as self-employed non-professionals.
• Partnership Firms, Limited Liability Partnerships, Private Limited Companies, and Sole Proprietorship Firms are also eligible for the loan.
• The Business must fulfill the Minimum Turnover Criteria of the lending institution.
• Minimum Business Vintage Period must also be fulfilled as asked by the lending body.
• The business must be in profit in recent years.
• Some lending institutions also ask for 1 year ITR.

Documents Required for a Business Loan

These are the list of documents that are required by the lending institutions while availing the business loan from them, read to know about them -

• Passport Sized Photograph of the Applicant.
• PAN Card, Aadhar Card, Valid Passport, Driving License, and Voter's I.D. Card (anyone) as the Identity Proof.
• Aadhar Card, Voter's I.D. Card, Driving License, Valid Passport, Telephone Bill, Water Bill, Utility Bill, and Electricity Bill (anyone) as the Address Proof.
• Address Proof of the Business.
• Business Vintage Proof as asked by the bank.
• Bank statement of the applicant and the business as asked by the bank.
• Profit and Loss Account Statement and Balance Sheet of the Company.
• All financial documents attested by a Chartered Accountant.
• Certificate of the Sales Tax.
• GST Registration proof.
• Certified Copy of a Partnership Deed.
• Memorandum of Association and Article of Association of the Company.

Types of Business Loan

There are various types of business loans that an individual can apply for from the above-mentioned financial institutions. You can explore all the loans that you can take for your business.

Discounting of Bills

An individual has an option to take a loan against the bill of exchange given to him by the buyer. The businessman can discount the bill with the bank and take the loan against it. But in the discounting of the bill, you will not get the exact amount of loan as it is on the bill. The bank will deduct certain charges and then it will give you the loan against the bill.

Letter of Credit

This facility is useful for those businessmen who don't know their potential buyers and it is mostly used in international trade. The letter of credit mainly assures the seller about the payment of its product from the buyer. If in case the buyer is unable to make the payment then the bank is liable to pay all outstanding amounts.

Overdraft Facility

In the overdraft facility, you can withdraw the excess sum of money from your account than it is actually available. But the bank will charge interest on the excess sum of money until it is successfully repaid to the bank.

Terms Loan

Term loans are basically a secured and unsecured loan that you can borrow for your business. There are three types of term loans and they are short-term loans, intermediate loans, and long-term loans. So, as per your repaying capacity, you can choose the period for the term loans.

Working Capital Loans

The business loans that are borrowed to manage the working capital of the business like maintaining inventories, managing current assets and liabilities are known as the working capital loans. You can apply for working capital loans as well from the above-mentioned banking and non-banking financial institutions.

Loans for Machinery

There are some individuals who fall short of funds while buying large equipment or machinery so they can borrow the machinery loans for expanding their overall business. So there are many financial institutions that grant a loan for machinery.

Collateral Loans

The collateral loans are basically a secured loan in which you have to mortgage something with the bank to take the business loan. Once you repay all the EMIs of the loan then you can take back the mortgaged property from the bank.

Business Loan Without ITR

There are some banking and non-banking financial institutions that grant a business loan without ITR but the amount of loan is less than their highest loan limit. These types of loans need a strong vintage period of the business.

Cash Credit Loans

You can take the Cash Credit facility from the bank for managing your working capital. But in this type of loan, you will have to mortgage the current asset against the cash that you have borrowed from the bank.

MUDRA Loans

MUDRA stands for Micro Units Development and Refinance Agency that provide loans to Micro Small and Medium enterprises. It is a government scheme in which you can take a loan for your business with a minimum of ₹50000 and a maximum of ₹50 Lacs.

Benefits of a Business Loan

There are various benefits of taking a loan because it will boost up the performance of your business. You can see the needs of the business that can be easily fulfilled with the help of a business loan.

Increase Cash Flow in Business

If you want to manage current assets and current liabilities then there is a need for liquidity in the company. So, you can take a business loan and manage all the activities that are related to the cash. Loans for a business will help you to increase the business cashflow.

Buy, Lease or Rent Land or Premises

It is obvious that from day one every businessman looks for expansion. So, business loans can be helpful in acquiring land or premises for expanding the business. On the other hand, you can take land or premises on lease with the help of a business loan.

Office Renovation

There are some professionals who want to renovate their offices so a loan for their business can be helpful. You can use the sum of money for renovating your offices and repay it in the given span of time.

Purchasing Machinery and Equipment

The loans for your business can also help you to increase your productivity by purchasing the latest machinery and equipment. On the other hand, you can also upgrade and repair your equipment using the loan amount.

Buying Inventories and Raw Material

Sometimes a businessman receives orders in bulk and due to the scarcity of funds he is unable to buy raw materials and inventories for production. Therefore, in such a situation you can borrow the loan and buy raw materials and inventories for further production.

Hiring Temporary Labours

Sometimes due to the overburden of work, many businessmen have to hire seasonal employees but they need some extra funds to remunerate all of them. So, here the need for a business loan arises and it can be helpful for you.

Business Expansion

You can take your business to a new height by taking risks and boosting your profits. It can be only possible if you have enough funds to take risks. So, the business loans are a helping hand that would remain by your side to achieve your goals.

How to Apply for a Business Loan

If you have understood all the details of the business loan and you are willing to apply for it then you must go through the steps for doing so.

• Analyze your need for the business loan that means the purpose for which you are taking the loan.
• Analyze your need for the business loan that means the purpose for which you are taking the loan.
• Check the Top Banking Institutions that grant business loans.
• Shortlist the banks that are suitable for you and compare their rate of interest.
• Check the tenure they are offering for the business loan and the maximum amount of unsecured loans that you can take.
• Go through the Processing Fees and other charges of the loan.
• Check the number of days they are taking to give you the loan.
• Then, fill-up the form given above with all the details asked.
• Once you fill the form, you will get a call from our representative.
• You can resolve all the queries with the representative and if everything goes fine you will get you loan.

Business Loan EMI Calculator

Some individuals want to know their loan EMIs before taking the loan because it helps them to speculate their expenses. So, you just have to enter the following details in the Business Loan EMI Calculator to calculate the EMIs:-

• Loan Amount you are willing to take.
• Rate of Interest Charged by the Bank.
• Tenure for which you are taking the loan.
• In the table given below, you can see the EMI for 36 months per Lac

Conclusion

A business loan can be a valuable resource for entrepreneurs aiming to expand or stabilize their business operations. It offers the needed capital to invest in growth, purchase equipment, or cover working capital, allowing businesses to take advantage of new opportunities or manage financial setbacks. However, it's important to evaluate key factors such as repayment terms, interest rates, and loan amounts to ensure they align with the business's financial situation and long-term goals. By selecting the right lender and loan option, businesses can support their growth while maintaining financial stability.