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Business Loan

Offering premium lending solutions, Urban Money assists diverse clients via comprehensive business loan services. Bridging the gap between lenders and loan providers, we ensure lightning-fast processing of business loans with minimal documentation and maximum efficacy.

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Best Business Loan Interest Rates Available from India's Top Banks

  • Interest Rate

    24%

  • Loan Amount

    ₹10L - ₹50L

  • EMI Per Lakh

    ₹2,877

  • Processing Fees

    3% of the disbursed loan amount
  • Pre-Payment Charges

    5% of the principal outstanding (For fixed & floating rates, both)
  • Interest Rate

    22.9% - 23.1%

  • Loan Amount

    ₹5K - ₹1L

  • EMI Per Lakh

    ₹2,813 - ₹2,825

  • Processing Fees

    Up to 2.50% of the loan amount + GST
  • Pre-Payment Charges

    --
  • Interest Rate

    19%

  • Loan Amount

    ₹50K - ₹25L

  • EMI Per Lakh

    ₹2,594

  • Processing Fees

    Up to 3% of the loan amount
  • Pre-Payment Charges

    5% of the principal outstanding
  • Interest Rate

    19%

  • Loan Amount

    ₹5L - ₹75L

  • EMI Per Lakh

    ₹2,594

  • Processing Fees

    Up to 2.75% of the loan amount plus GST
  • Pre-Payment Charges

      Processing fees

    • Up to 2.75% of the loan amount plus GST
    • Foreclosure charges

    • 4.5% on future principal outstanding on existing loan plus GST
    • No foreclosure allowed for the first 9 months
    ... more
  • Interest Rate

    18%

  • Loan Amount

    ₹3.5L - ₹25Cr

  • EMI Per Lakh

    ₹2,539

  • Processing Fees

    Micro Million: Upto 3.5% of the loan amount + taxes
  • Pre-Payment Charges

    4% of the principal amount + taxes
  • Interest Rate

    18%

  • Loan Amount

    ₹50K - ₹2.5L

  • EMI Per Lakh

    ₹2,539

  • Processing Fees

    Up to 3% of loan amount
  • Pre-Payment Charges

    --
  • Interest Rate

    18%

  • Loan Amount

    ₹50K - ₹1Cr

  • EMI Per Lakh

    ₹2,539

  • Processing Fees

    • Indifi Term Loan: 2%
    • Indifi Business Loan Line of Credit: 2%
    • Indifi Merchant Cash Advance: 2%
    • Indifi Business Loan for Women: 2%
    • Indifi Flipkart Seller Loan: 3%
    • Indifi Amazon Seller Loan: 3%
    ... more
  • Pre-Payment Charges

    Indifi Business Loan for Construction Business: 4%.
  • Interest Rate

    17% - 21%

  • Loan Amount

    Up to ₹50L

  • EMI Per Lakh

    ₹2,485 - ₹2,705

  • Processing Fees

    Up to 6.5% p.a. of the loan amount
  • Pre-Payment Charges

    --
  • Interest Rate

    17%

  • Loan Amount

    ₹5L - ₹30L

  • EMI Per Lakh

    ₹2,485

  • Processing Fees

    2% plus the applicable GST
  • Pre-Payment Charges

    After 36 months of agreement : 2% plus applicable GST
  • Interest Rate

    17%

  • Loan Amount

    ₹25L

  • EMI Per Lakh

    ₹2,485

  • Processing Fees

    Up to 4% of the sanctioned loan amount
  • Pre-Payment Charges

    • 4% of principal amount
  • Interest Rate

    16% - 28%

  • Loan Amount

    ₹3L - ₹75L

  • EMI Per Lakh

    ₹2,432 - ₹3,114

  • Processing Fees

    Up to 2%
  • Pre-Payment Charges

    Up to 4% of outstanding amount.

Quick Approval

  • Interest Rate

    16%

  • Loan Amount

    Up to ₹50L

  • EMI Per Lakh

    ₹2,432

  • Processing Fees

    Up to 2.5% of loan amount
  • Pre-Payment Charges

    Part prepayment is not allowed
  • Interest Rate

    15.5% - 24%

  • Loan Amount

    Up to ₹50L

  • EMI Per Lakh

    ₹2,405 - ₹2,877

  • Processing Fees

    1% of the loan amount (fixed)
  • Pre-Payment Charges

    --
  • Interest Rate

    15% - 24%

  • Loan Amount

    ₹1L - ₹75L

  • EMI Per Lakh

    ₹2,379 - ₹2,877

  • Processing Fees

    Up to 5%
  • Pre-Payment Charges

    --
  • Interest Rate

    15%

  • Loan Amount

    ₹50K - ₹2Cr

  • EMI Per Lakh

    ₹2,379

  • Processing Fees

    2%-3%
  • Pre-Payment Charges

    NIL

Quick Approval

  • Interest Rate

    15% - 28%

  • Loan Amount

    ₹1L - ₹30L

  • EMI Per Lakh

    ₹2,379 - ₹3,114

  • Processing Fees

    For Medical Equipment Loans: minimal charges
  • Pre-Payment Charges

    4% of outstanding loan amount plus taxes
  • Interest Rate

    15%

  • Loan Amount

    Up to ₹40Cr

  • EMI Per Lakh

    ₹2,379

  • Processing Fees

    Up to 1.99%
  • Pre-Payment Charges

    Allowed after 24 EMI's, 5% charges up to 6 months and at 4% after that.
  • Interest Rate

    14.99% - 24.99%

  • Loan Amount

    ₹5L - ₹50L

  • EMI Per Lakh

    ₹2,378 - ₹2,935

  • Processing Fees

    Up to 3% of the sanctioned loan amount
  • Pre-Payment Charges

    --
  • Interest Rate

    14%

  • Loan Amount

    ₹50K - ₹1Cr

  • EMI Per Lakh

    ₹2,327

  • Processing Fees

    Up to 2% of the loan amount
  • Pre-Payment Charges

    • 2% of the amount prepaid.
  • Interest Rate

    14% - 24%

  • Loan Amount

    ₹15L - ₹50L

  • EMI Per Lakh

    ₹2,327 - ₹2,877

  • Processing Fees

    Up to 3%
  • Pre-Payment Charges

    --
  • Interest Rate

    14% - 26%

  • Loan Amount

    ₹1L - ₹35L

  • EMI Per Lakh

    ₹2,327 - ₹2,994

  • Processing Fees

    • 2.5% of Loan amount for Business Loans (loan amount greater than Rs 25 lakh)
    • 3% of Loan amount for small business Loans (Rs 5 lakh to Rs 25 lakh)
    • (No processing fee applicable for small business loans below Rs 5 lakh)
    ... more
  • Pre-Payment Charges

    • Zero foreclosure permitted before repayment of 6 EMIs.
    • On payment of 7 to 18 EMIs – 5% of principal outstanding.
    • On payment of more than 18 EMIs – 3% of principal outstanding.
    • Note: The foreclosure charges are not applicable for facility sanctioned to MSMEs with floating interest rate loans and for fixed interest rate loans with loan amounts of up to Rs 50 lakh.
    ... more
  • Interest Rate

    13.99%

  • Loan Amount

    ₹5L - ₹25L

  • EMI Per Lakh

    ₹2,326

  • Processing Fees

    0.50% for salaried and 1% for SENP (plus applicable taxes and other bona fide levies, if any)
  • Pre-Payment Charges

    Rs.500 (Nil if requested once in quarter)
  • Interest Rate

    13.5% - 19.5%

  • Loan Amount

    ₹5L - ₹50L

  • EMI Per Lakh

    ₹2,301 - ₹2,622

  • Processing Fees

    Up to 2.5% of the sanctioned loan amount
  • Pre-Payment Charges

    --
  • Interest Rate

    13%

  • Loan Amount

    Up to ₹75L

  • EMI Per Lakh

    ₹2,275

  • Processing Fees

    Processing fee (% of sanction limit) 1%
  • Pre-Payment Charges

    • Prepayment / foreclosure charges for MSME 2%.
  • Interest Rate

    12.75% - 44%

  • Loan Amount

    ₹1L - ₹50L

  • EMI Per Lakh

    ₹2,263 - ₹4,144

  • Processing Fees

    2% to 6% plus GST with an additional amount of up to Rs 500 charged as convenience fees
  • Pre-Payment Charges

    For prepayment / foreclosure within 1 – 6 months of EMI repayment: 7% plus GST
  • Interest Rate

    12.5% - 16%

  • Loan Amount

    ₹1L - ₹40L

  • EMI Per Lakh

    ₹2,250 - ₹2,432

  • Processing Fees

    Up to 2% (plus applicable taxes) of the facility amount
  • Pre-Payment Charges

    • Charged as per the terms and conditions mentioned in the sanction letter.
    • No foreclosure charges for Micro and Small enterprises.
    ... more
  • Interest Rate

    12% - 17.5%

  • Loan Amount

    ₹5L - ₹75L

  • EMI Per Lakh

    ₹2,224 - ₹2,512

  • Processing Fees

    Up to 2.75% of the loan amount plus GST
  • Pre-Payment Charges

    4.5% on future principal outstanding on existing loan plus GST
  • Interest Rate

    12% - 18%

  • Loan Amount

    ₹1L - ₹30L

  • EMI Per Lakh

    ₹2,224 - ₹2,539

  • Processing Fees

    Up to 2% of the sanctioned loan amount
  • Pre-Payment Charges

    Up to 2% of the outstanding amount
  • Interest Rate

    11.9% - 21.35%

  • Loan Amount

    Up to ₹40L

  • EMI Per Lakh

    ₹2,219 - ₹2,725

  • Processing Fees

    For availing fresh business loan: Up to 2% plus GST
  • Pre-Payment Charges

    06 – 24 months: 4% of total principal outstanding,
  • Interest Rate

    11.4% - 15.5%

  • Loan Amount

    Up to ₹15L

  • EMI Per Lakh

    ₹2,194 - ₹2,405

  • Processing Fees

    Up to 1% (Maximum Rs 7,500)
  • Pre-Payment Charges

    There is no prepayment penalty if the loan is adjusted by the borrower from his/her own verifiable legitimate sources.
    ... more
  • Interest Rate

    11.2% - 16.3%

  • Loan Amount

    Up to ₹50Cr

  • EMI Per Lakh

    ₹2,184 - ₹2,448

  • Processing Fees

    Flat Rs 10,000
  • Pre-Payment Charges

    NIL
  • Interest Rate

    11.1% - 16%

  • Loan Amount

    ₹1L - ₹2Cr

  • EMI Per Lakh

    ₹2,179 - ₹2,432

  • Processing Fees

    Up to 3% of the loan amount
  • Pre-Payment Charges

    Up to 12 months : 2% ,More than 12 months: Nil
  • Interest Rate

    10.75% - 25%

  • Loan Amount

    ₹50K - ₹10Cr

  • EMI Per Lakh

    ₹2,162 - ₹2,935

  • Processing Fees

    Upto 2.00% + Taxes applicable
  • Pre-Payment Charges

    Nill/2% of sanction limit
  • Interest Rate

    10.5%

  • Loan Amount

    ₹1L - ₹9L

  • EMI Per Lakh

    ₹2,149

  • Processing Fees

    Up to 3.5%
  • Pre-Payment Charges

    5% of outstanding principal
  • Interest Rate

    10.2% - 12.95%

  • Loan Amount

    ₹5L - ₹5Cr

  • EMI Per Lakh

    ₹2,135 - ₹2,273

  • Processing Fees

    Starting from ₹500 – 10,000
  • Pre-Payment Charges

    --
  • Interest Rate

    10% - 22.5%

  • Loan Amount

    ₹50K - ₹50L

  • EMI Per Lakh

    ₹2,125 - ₹2,790

  • Processing Fees

    • Up to 2.00%* of the loan amount.
    • NIL Processing Fees for loan facility up to ₹5 Lakhs availed by micro and small Enterprises subject to URC submission prior to disbursal.
    ... more
  • Pre-Payment Charges

    • 06 – 24 months: 4% of total principal outstanding.
    • 25 – 36 months: 3% of total principal outstanding.
    • More than 36 months: 2% of total principal outstanding.
    • Note:The bank does not permit part/full prepayment of loans until repayment of at least 6 EMIs.
    • The bank allows part-payment of up to 25% of the principal outstanding, after payment of 12 EMIs, once in the financial year and twice during the entire loan tenure.
    • The bank does not levy any foreclosure/prepayment charges for fixed rate business loan facility of up to Rs. 50 Lakh availed by Micro & Small Enterprises (MSE) and closure from own sources
    ... more
  • Interest Rate

    10% - 42%

  • Loan Amount

    ₹1L - ₹1Cr

  • EMI Per Lakh

    ₹2,125 - ₹4,009

  • Processing Fees

    Less than 2% of the loan amount
  • Pre-Payment Charges

    Up to 3% - 6% (eligible 6 months after the disbursement of the loan amount)
  • Interest Rate

    10% - 24%

  • Loan Amount

    -

  • EMI Per Lakh

    ₹2,125 - ₹2,877

  • Processing Fees

    Starting From 3%
  • Pre-Payment Charges

    --
  • Interest Rate

    9.75% - 25%

  • Loan Amount

    ₹5L - ₹30L

  • EMI Per Lakh

    ₹2,112 - ₹2,935

  • Processing Fees

    Up to 5%
  • Pre-Payment Charges

    --
  • Interest Rate

    9.5% - 11.55%

  • Loan Amount

    ₹50K - ₹20Cr

  • EMI Per Lakh

    ₹2,100 - ₹2,202

  • Processing Fees

    Up to 75% of applicable charges
  • Pre-Payment Charges

    0.25% per lakh or part there of with a minimum of Rs. 500 or 1% of the loan amount
  • Interest Rate

    9% - 12%

  • Loan Amount

    ₹25L - ₹5Cr

  • EMI Per Lakh

    ₹2,076 - ₹2,224

  • Processing Fees

    2% of the amount disbursed
  • Pre-Payment Charges

    EDI (Equated Daily Installment)
  • Interest Rate

    9% - 36%

  • Loan Amount

    Up to ₹75L

  • EMI Per Lakh

    ₹2,076 - ₹3,613

  • Processing Fees

    Up to 4% of loan amount sanctioned
  • Pre-Payment Charges

    For unsecured loans:

  • 6% of outstanding principal amount for loan foreclosure within 12 months of loan sanction
  • 5% of outstanding principal amount for loan foreclosure after 12 months of loan sanction
  • For secured loans (immovable property):

  • 6% of outstanding principal amount for early payment/loan foreclosure within 12 months of loan sanction.
  • 4% of outstanding principal amount for early payment (more than 25% of principal outstanding at beginning of financial year) / loan foreclosure after 12 months of loan sanction.
  • ... more
  • Interest Rate

    8.75% - 14.58%

  • Loan Amount

    ₹30L - ₹1Cr

  • EMI Per Lakh

    ₹2,064 - ₹2,357

  • Processing Fees

    Up to 2% of the loan amount
  • Pre-Payment Charges

    4% of the principal outstanding
  • Interest Rate

    8.25% - 18%

  • Loan Amount

    ₹1L - ₹40L

  • EMI Per Lakh

    ₹2,040 - ₹2,539

  • Processing Fees

    Up to 2% of the loan amount
  • Pre-Payment Charges

    No pre-payment permitted until repayment of 12 EMIs
  • Interest Rate

    8.15% - 15%

  • Loan Amount

    ₹50K - ₹15L

  • EMI Per Lakh

    ₹2,035 - ₹2,379

  • Processing Fees

    Up to Rs.300/- per lakh or part thereof
  • Pre-Payment Charges

    2% on the outstanding pre-paid
  • Interest Rate

    8.05% - 13.45%

  • Loan Amount

    ₹50K - ₹5Cr

  • EMI Per Lakh

    ₹2,030 - ₹2,298

  • Processing Fees

    --
  • Pre-Payment Charges

    --
  • Interest Rate

    6.75% - 13.5%

  • Loan Amount

    ₹5L - ₹50L

  • EMI Per Lakh

    ₹1,968 - ₹2,301

  • Processing Fees

    Up to 3% of the loan amount
  • Pre-Payment Charges

    Up to 12 months : 2% ,More than 12 months: Nil
  • Interest Rate

    Up to 26%

  • Loan Amount

    ₹5L - ₹40L

  • EMI Per Lakh

    ₹2,994

  • Processing Fees

    Up to 2%
  • Pre-Payment Charges

    Allowed only after 12 months of the loan sanction Charges will be applicable as mentioned in the sanction letter.
    ... more
  • Interest Rate

    Up to 18%

  • Loan Amount

    ₹1L - ₹50L

  • EMI Per Lakh

    ₹2,539

  • Processing Fees

    Up to 2%
  • Pre-Payment Charges

    --

Compare Business Loan

We provide what your business needs. At Urban Money, we understand, address and absolve your need for capital via extensive business loan services. Tailoring business loans for startups, MSMEs and larger organisations, we help our clients choose the best lenders from an exhaustive list of public and private banks and NBFCs via cutting-edge comparative analysis of business loan interest rates. Get faster loan processing and easy disbursal with minimal documentation to escalate your business to new heights only at Urban Money.

Calculate Your Business Loan EMI Online

  • 50 K
  • 1 Cr
Years
  • 1
  • 5
%
  • 8
  • 25

Monthly Loan EMI

Payment Breakdown:

Principal Amount

₹15,00,000

Interest Payable

Total Amount Payable

Business Loan Features and Benefits

Business loans come with numerous benefits and features to help borrowers cope with financial obligations. The following are a few features that you unlock when you count on a business loan:

  • Fast Disbursal: Generally, business professionals apply for a business loan when they need instant access to funds. One of the best parts of a business loan is that it comes with quick disbursal. You don't have to wait for months to access funds. The amount is disbursed within 3 to 5 working days.
  • Minimum Documentation: One of the foremost features of a business loan is the minimal documentation requirement. Banks and finance companies process business applications with little documentation. No hectic paperwork is required. With the online business loan application process, you get the option to submit a scanned copy of the documents, that's all.
  • Competitive Business Loan Interest Rates: Banks and financial institutions offer business loans at attractive interest rates. Debtors can get commercial loans without higher monthly repayments.
  • No Prepayment Charges: Prepayment of business loans is permitted without additional fees or charges. However, this may vary from one bank to another.
  • Flexible Repayment Tenure: In general, banks and financial providers offer business loans with flexible repayment tenure. You can choose your repayment tenure as per your choice. However, don't forget that a longer repayment period results in an increased payable interest component.
  • Collateral-Free Loans: The availability of unsecured business loans allows you to get collateral-free business loans. Such loans are time efficient and can be easily accessed without pledging any commercial or personal assets.

Business Loan Overview

A business loan is a sum of money obtained by a company to cover expenses it is unable to cover on its own. Some entrepreneurs utilise business loans to pay for salary and wages while their new firm is getting off the ground, whereas others use borrowed funds for office supplies, inventory, business growth and business projects.

Lenders want to understand how the company plans to spend the borrowed funds, so business owners should make sure they have a detailed plan in place. It's critical to impress lenders by appearing professional, or the loan application may be denied.

Businesses can pick from a range of loan choices, such as business startup loans, small business loans, and business loans for women, among others.

Factors Affecting Business Loan Interest Rate

Certain criteria are crucial in calculating the interest rates that apply. The following variables may affect the offered business loan interest rates:

1) Nature of Business

One of the essential aspects influencing the interest rate on your business loan is the type of business. Your business creditworthiness will decide what type of business loan you can get and at what interest rate. Your business should be involved with high-quality products and services. Additionally, the location in which you operate should not be on any blacklists.

2) CIBIL Score or Credit Score

A high CIBIL score can have a significantly positive impact on the offered interest rate. The lender will provide you with the lowest interest rate loan if your CIBIL score is high. On the flip side, they may charge you a higher interest rate or possibly reject your mortgage collateral if your CIBIL score is low.

3) Business Experience

The experience of the organisation is vital because a well-established enterprise is considered secure and risk-free. If you've been in business for a while, creditors may be willing to provide you with a business loan at a reduced interest rate to help you expand.

4) Repayment History

Another important aspect that determines business loan interest rates is your repayment history. If you consistently make your payments on time, you'll have a better chance of getting a business loan with a reduced interest rate.

➡️ Read more about Machinery Loan

Business Loan Interest Rate

The business loan interest rate is determined by a number of factors, including the borrower's financial profile, the purpose of the loan, collateral, the credit score or credit rating, and much more.

The following factors affect the business loan evaluation process:

  • The financial feasibility of the business model.
  • The amount of competitiveness in the industry.
  • At the industrial level, the performance of the corporate entity.
  • Annual turnover and overall business growth or expansion.
  • Ratio financiers.

Banks decide the interest rates at which a loan can be issued to a borrower based on all of these indicators. The applicant's personal creditworthiness is taken into account in addition to the business's trustworthiness. Lenders typically offer commercial lending rates ranging from 7% to 21%.

Business Loan Documents Required

The following business loan documents are mandatory to avail of a loan with utmost ease:

  • Form and Photographs: Duly filled business loan application form and 2 passport size photographs.
  • Proof of Identity: PAN card, passport, Voter ID card, MAPIN Card or driving licence.
  • Residence Proof: Voter ID card, ration card, utility bills, including electricity bill, telephone bill, Aadhaar card or lease agreement.
  • Age Proof: Voter ID card, Aadhaar card, PAN card or passport.
  • Financial Documents: Income Tax Returns for the last 2 years, balance sheet audited by a certified Chartered Accountant (CA), profit and loss statement (2 years), along with a statement representing the business transaction.
  • Proof of Income: Bank statement of business account as well as the personal account for the last two years.
  • Proof of Business Ownership: Documents including the declaration of a sole proprietorship, a copy of the memorandum along with the articles of association will be required.
➡️ Read more about 10 Business Loan Schemes for Women Entrepreneurs

FAQs

From refinancing to reducing your interest, we have the answers right here.

How do I get a loan to start a business?

To get a loan to start a business, you should count on a startup business loan. All you have to do is apply for a business loan, either online via the bank’s official website or offline by visiting its nearest branch.

Which loan is best for business?

The loan that will be best for your business entirely depends upon the nature of your business. For instance, if you are a startup, then move forward with a startup business loan. In the case of a small business, count on a small business loan.

What is the limit of a business loan?

At maximum, you can avail of a business loan of INR 30 lakh. However, it will depend upon certain factors, including the credibility of your business. At the same time, the business loan repayment period falls in the range of 12 to 60 months.

Can I get a loan for business?

Yes, you can get a loan for a business. However, you need to be eligible for a business loan. Additionally, having a good credit score, stable business growth, and good repayment history will increase the chances of loan approval.

How to know what business loan amount am I eligible for?

The business loan amount you are eligible for is determined by your profile, business requirements, CIBIL score, nature of business, repayment history, annual turnover, and business stability.

How to apply for a business loan?

You can apply for a business loan either through the bank or financial institution’s online portal or by visiting the branch in person. Make sure to keep the documents ready beforehand while applying for a business loan.

Is a business loan a tax-saving deduction?

Yes, a business loan is a tax-saving deduction. Regardless of the type of business loan, i.e., working capital loan, equipment finance, startup business loan, etc., interest paid is tax-deductible.

What are the documents needed for business loans for a salaried applicant?

For a salaried applicant, documents, including proof of identity, duly filled application form, ITR proof, age proof and income proof, will be required for a business loan application.

What is the minimum turnover requirement for a business loan?

The minimum turnover requirement for a business loan is INR 40 lakhs.

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Business Loan Guide

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