With the increase in economic growth and the flourishing start-up culture of India, many entrepreneurs are indulging in the business world of India. People starting their own businesses often deal with difficulties like lack of funds. A good business prospect and drive may get demolished just because of the minimal fund.
In such cases, traditional lenders and financial institutions provide Business Loans to fund the operations of the businesses. However, you may be confused about where you should take the loan. This article will educate you about the top 10 lenders for Business Loans in India.
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Clix Capital Business Loans
Clix Capital is one of the leading loan providers in the country today. It is an online money lending institution that works to fulfil your working capital needs to start a business venture. Depending on your needs, Business Loans from Clix Capital can be secured and unsecured. You can also avail of loans for vehicle leasing, industrial equipment purchase, healthcare for business, etc. The maximum loan amount offered by Clix Capital is INR 50 lacs without collateral.
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HDFC Bank Business Growth Loans
HDFC bank offers Business Loans to employed individuals as well as companies. You can apply for up to ₹40 lakhs without providing any collateral. In addition, you will get extra benefits like an overdraft facility and flexible tenure options.
The Business Loan eligibility is a minimum turnover of the business, which should be ₹40 lakhs.
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Citibank Business Loan
This loan is best for you if you have an import/export or foreign exchange business. You will be offered INR and foreign currency-denominated rates on the loan amount. Therefore, it is pretty much cheaper than average interest rates.
You can choose between overdraft and working capital loans in both the short- and long-term. However, you will be required to pay 2% of the processing fee, renewal fees, and pre-closure charges on the amount sanctioned.
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IDFC First Bank Business Loans
The best benefit offered by IDFC First Bank is that you will get a loan amount even for buying equipment, upgrading your business, and other business needs. But you must remember to pay the amount back in equal installments within a fixed monthly interval.
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ICICI Bank Business Loans
ICICI Business Loan is an excellent option as it provides loans for purchasing new machinery and plants. The maximum tenure is seven years. The current rate of interest is 10% to 11.10%. Therefore, the ICICI Business Loan is best for existing cstomers.
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SBI Simplified Small Business Loans
The main motive of SBI simplified small Business Loans is to provide loans so that small businesses can build up their fixed and current assets. The minimum and maximum loan amounts are ₹10 lakhs and₹25 lakhs. But it requires 40% of the collateral security. The repayment period is up to 60 months, and the Business Loan eligibility is that the business should have a five years existence. This loan is best for small MSME businesses.
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Tata Capital Business Loan
Tata Capital Business Loan offers custom-built Business Loans with a minimum of ₹5 lakhs and goes up to ₹75 lakhs. You will not have to provide any security. The interest rate begins at 12%, and you have to repay it within 12 to 36 months. If you have a CIBIL Score of 700 and above, you can quickly get this loan. You can avail of this loan as a machinery loan, working capital loan, SME, or MSME Loan.
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IIFL Financial Business Loan
IIFL Financial Business Loans are provided to businesses with a minimum of 3 years of existence, positive net worth, and good repayment history of previous loans. They always charge a processing fee of 3% on the amount sanctioned.
The minimum and maximum loan amounts are ₹1 lakh and ₹50 lakhs, respectively, with no collateral submission. You have to repay it within 12 months and 48 months.
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Bajaj FinServ MSME Loans
This loan provides financial benefits like investing in overheads, infrastructure, and machinery installation. You can borrow up to ₹20 lakhs without giving any collateral. The business loan eligibility criteria are your business should have a three years existence. The interest rates start from 18%, and you have to repay it within 12 to 60 months.
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Fullerton India Business Loan
Getting a Business Loan without providing too much documentation is a good option. Fullerton India offers a Business Loan of up to ₹50 lakhs, which can be used for office expansion, business marketing, purchasing inventory, and paying salaries.
You must repay it within 12 to 60 months, and interest rates range between 17% and 21%. This loan is preferable for self-employed individuals and small businesses.
Conclusion
Many people avail of business loans to start their businesses. But if you don’t compare and choose the right Business Loan provider, you may have to pay more in terms of interest and other charges. So, choose wisely.