Business Loan — funding for growth, from banks and NBFCs
Working capital, new equipment, a second outlet or a big order to fulfil. We match your turnover, vintage and GST history to lenders who fund businesses like yours.
- Collateral-free options
- Up to ₹50 lakh unsecured
- Govt-backed schemes
Starting rates
at 27 lenders
- Punjab National Bankfrom 12.6% p.a.
- Bank of Indiafrom 10.2% p.a.
- Union Bank of Indiafrom 9.55% p.a.
- State Bank of Indiafrom 9.1% p.a.
- Bank of Barodafrom 7.25% p.a.
- Kotak Mahindra Bankfrom 9.5% p.a.
- Yes Bankfrom 17.25% p.a.
- IDFC First Bankfrom 13% p.a.
- RBL Bankfrom 14% p.a.
- Federal Bankfrom 11.1% p.a.
- Axis Bankfrom 10.99% p.a.
- UGRO Capitalfrom 9% p.a.
- Tata Capitalfrom 12% p.a.
- LoanTapfrom 18% p.a.
- Aditya Birla Capitalfrom 14% p.a.
- Edelweiss Financial Servicesfrom 18% p.a.
- FT Cashfrom 18% p.a.
- SMFG India Creditfrom 21% p.a.
- L&T Financefrom 15.5% p.a.
- NeoGrowthfrom 15% p.a.
- Lendingkartfrom 13.5% p.a.
- Hero FinCorpfrom 14% p.a.
- Capri Global Capitalfrom 13.5% p.a.
- Bajaj Financefrom 14% p.a.
- Poonawalla Fincorpfrom 15% p.a.
- Muthoot Financefrom 9% p.a.
- IIFL Financefrom 36% p.a.
What is a business loan?
A business loan is money borrowed for your business: to run it day to day, buy equipment or grow. Smaller loans are often unsecured, so the lender judges your turnover, profit, bank statements and credit score instead of collateral.
Larger amounts, or a lower rate, usually need security such as property or the machinery being bought. Government schemes like CGTMSE and Mudra help small businesses borrow without collateral.
At a glance
- Loan amount
- ₹1 lakh to ₹50 lakh unsecured, more secured
- Interest rate
- 7.25%–40% p.a.
- Tenure
- 1–5 years (longer when secured)
- Processing fee
- Up to 2–3% + GST
- Collateral
- Often not needed up to a limit
- Disbursal
- Typically 3–7 working days
Compare business loan interest rates
Published rates from banks and NBFCs. Business-loan rates vary more than most: vintage, turnover and your bank statements decide where in the range you land.
- Lowest starting rate
- 7.25%p.a.
- Lenders listed
- 27
- Largest amount
- ₹50 crore
- Punjab National BankPublic-sector bankStarting from12.6% p.a.
- Rate range
- 12.6%–15.6% p.a.
- Max amount
- ₹10 crore
- Max tenure
- 12 months
- Rate type
- fixed
- Processing fee
- Up to Rs.300/- per lakh or part there
- Bank of IndiaPublic-sector bankStarting from10.2% p.a.
- Rate range
- 10.2%–12.95% p.a.
- Max amount
- ₹5 crore
- Max tenure
- 7 years
- Rate type
- fixed
- Processing fee
- Starting from ₹500 – 10,000
- Union Bank of IndiaPublic-sector bankStarting from9.55% p.a.
- Rate range
- 9.55%–12.1% p.a.
- Max amount
- ₹15 lakh
- Max tenure
- 7 years
- Rate type
- fixed
- Processing fee
- Up to 1% (Maximum Rs 7,500)
- State Bank of IndiaPublic-sector bankStarting from9.1% p.a.
- Rate range
- 9.1%–11.55% p.a.
- Max amount
- ₹50 crore
- Max tenure
- 15 years
- Rate type
- fixed
- Processing fee
- Flat Rs 10,000
- Bank of BarodaPublic-sector bankLowest rateStarting from7.25% p.a.
- Rate range
- 7.25%–13.5% p.a.
- Max amount
- ₹1 crore
- Max tenure
- 36 months
- Rate type
- fixed
- Processing fee
- Up to 3% of
- Kotak Mahindra BankPrivate bankStarting from9.5% p.a.
- Rate range
- 9.5%–30.5% p.a.
- Max amount
- ₹1 crore
- Max tenure
- 48 months
- Rate type
- fixed
- Processing fee
- Maximum 2% of the loan/facility amount (applicable taxes)
- Yes BankPrivate bankStarting from17.25% p.a.
- Rate range
- 17.25%–17.25% p.a.
- Max amount
- ₹75 lakh
- Max tenure
- 5 years
- Rate type
- fixed
- Processing fee
- Typically, 2–3% of the sanctioned loan amount
- IDFC First BankPrivate bankStarting from13% p.a.
- Rate range
- 13%–13% p.a.
- Max amount
- ₹1 crore
- Max tenure
- 48 months
- Rate type
- fixed
- Processing fee
- Up to 3.5% of the loan amount
- RBL BankPrivate bankStarting from14% p.a.
- Rate range
- 14%–26% p.a.
- Max amount
- ₹35 lakh
- Max tenure
- 36 months
- Rate type
- fixed
- Processing fee
- 3% of the loan amount, No processing fee below Rs. 5 lakh in case of Small Business Loans
- Federal BankPrivate bankStarting from11.1% p.a.
- Rate range
- 11.1%–17.95% p.a.
- Max amount
- ₹2 crore
- Max tenure
- 10 years
- Rate type
- fixed
- Processing fee
- Up to 3% of the sanctioned amount
Last verified 19 Sep 2026. These are the lenders' published rates and fees, and they can change without notice. Your rate depends on your credit score, income and employer, and the lender makes the final decision.
Business loan EMI calculator
Your EMI depends on the amount, the rate and the tenure. Change any of them to see the monthly payment and the total interest.
Your loan
Your monthly EMI
₹10 lakh · 36 months · 15% p.a.
- Principal₹10,00,000
- Interest₹2,47,952
- Total amount payable
- ₹12,47,952
We'll carry ₹10 lakh over 36 months into the form.
Example: For a loan of ₹10,00,000 at 15% p.a. for 36 months, the EMI is ₹34,665 and the total amount payable is ₹12,47,952 (interest ₹2,47,952), excluding processing fee and taxes.
How your balance comes down
Early payments are mostly interest. The principal falls faster in the later years.
- Outstanding principal
- Interest paid so far
Year-wise repayment schedule
| Year | Principal paid | Interest paid | Closing balance |
|---|---|---|---|
| 1 | ₹2,85,054 | ₹1,30,930 | ₹7,14,946 |
| 2 | ₹3,30,878 | ₹85,106 | ₹3,84,068 |
| 3 | ₹3,84,068 | ₹31,916 | ₹0 |
Monthly EMI ₹34,665. Total interest ₹2,47,952. Total payable ₹12,47,952.
Business loan eligibility
Each lender sets its own rules. These are the usual minimums, so check them before you apply.
Self-employed applicants
- Business running for at least 2–3 years
- Profit in at least the last 1–2 years
- Minimum turnover set by each lender (often ₹10–40 lakh a year)
- Credit score of 700+; GST registration helps
Documents for a business loan
Keep these ready before you apply. Complete documents are the quickest way to a decision.
Tick off what you already have.
What can a business loan pay for?
- Working capital between payments
- Buying stock for a season or a big order
- Machinery and equipment
- Opening a new outlet or branch
- Clearing costlier short-term debt
- Bridging slow-paying invoices
- Software, computers and technology
- Marketing and hiring
How to apply for a business loan
You fill in one short form. An advisor does the comparing and stays with you until the money is in your account.
- 1
Tell us once
Share what you need and a few details about your income. Takes about two minutes.
- 2
We compare
We check your profile against the eligibility rules of our partner banks and NBFCs and shortlist the ones likely to say yes, at the best rate.
- 3
You choose
We walk you through the shortlisted offers: rate, fees, EMI, and the fine print. No pressure to pick any of them.
- 4
We stay till disbursal
Your advisor collects documents, coordinates with the bank and keeps you updated until the loan is disbursed.
What decides your business loan rate
- Vintage
- How long the business has run. Three years or more opens most lenders.
- Turnover and profit
- Lenders read your ITR and financials to judge how comfortably you can pay the EMI.
- Bank statements
- Steady credits, few bounced cheques and a healthy average balance count for a lot.
- Owner's credit score
- For small businesses the owner's score is judged alongside the business's own record.
- Security
- A loan backed by property or equipment can cost several points less than an unsecured one.
How to get a lower rate
- 1File GST and ITR on time. A clean filing history is the fastest way to a better offer.
- 2Route business income through one current account so the statements show it.
- 3Offer security if you have it, or ask about a CGTMSE-covered loan.
- 4Borrow for a tenure your cash flow can carry, not the longest on offer.
- 5Let us compare first: several hard enquiries in a month make lenders cautious.
Which government schemes can help my business borrow?
Three schemes cover most small businesses: Mudra for loans up to ₹20 lakh, CGTMSE for collateral-free credit, and Stand-Up India for first-time founders.
₹50,000
Shishu
₹5 lakh
Kishore
₹10 lakh
Tarun
₹20 lakh
Tarun Plus
PM Mudra Yojana
Up to ₹20 lakhFor micro and small non-farm businesses, without collateral. Tarun Plus is for borrowers who repaid a Tarun loan.
CGTMSE
Guarantee on loans up to ₹10 croreA government trust guarantees the lender, so micro and small enterprises can borrow without pledging property.
Stand-Up India
₹10 lakh to ₹1 croreFor women and SC/ST entrepreneurs setting up a new manufacturing, services or trading business.
Scheme limits as announced; lenders apply their own checks. We'll tell you which scheme your business fits.
Types of business loans
- Working capital loan
- Term loan
- Machinery / equipment loan
- Cash credit / overdraft
- Invoice / bill discounting
- Loans for professionals (doctors, CAs)
- MSME loan
- Loans for women entrepreneurs
We are here to answer
all your questions
An unsecured loan needs no collateral but costs more and is smaller. A secured loan, against property or equipment, is larger and cheaper.
It varies by lender, commonly ₹10–40 lakh a year for unsecured loans. Some NBFCs lend to smaller businesses at higher rates.
Usually lenders want 2–3 years of trading. Newer businesses can look at Mudra, Stand-Up India or a loan secured by property.
Yes, if your turnover is below the GST threshold. Lenders then lean on your ITR, Udyam certificate and bank statements.
A loan against property is cheaper and longer but takes 1–2 weeks and puts your property at stake. An unsecured business loan is faster.
Yes. Interest on money used for the business is an expense, so it reduces your taxable profit.
An overdraft charges interest only on what you use, which suits uneven needs. A term loan suits a one-time purchase.
Yes. It proves your business is an MSME, which you need for CGTMSE cover and priority-sector lending.
They read 6–12 months of bank statements for regular credits, average balance and bounced cheques, alongside GST returns.
Usually yes, after a lock-in, with a charge of up to 4–5% on fixed-rate loans. Check the Key Fact Statement.
Ready to see which business loan offers you qualify for?
Takes two minutes. No impact on your credit score.