Business loans are an essential source of financing for entrepreneurs and business owners. Business loans can purchase inventory, equipment, or real estate. They can also be used to finance working capital for short-term financial needs. Business loans are a form of debt financing, where the bank lends money to the business for a specified period. The bank expects to get back their money with interest and profit from the interest charged on the loan. The importance of business loans is that they allow entrepreneurs to start a new venture or expand their existing business. They can use this capital to purchase new equipment, invest in marketing campaigns, purchase inventory and hire staff. Banks also offer other additional services such as accounting and tax preparation services. So, now the question is, which bank is best for a business loan? Here is the list of the top 5 best banks for business loans in India.
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HDFC bank
One of the top banks in the Indian market till now. The bank provides a wide range of facilities and benefits for its consumers and offers safe financial services for international transactions. The maximum amount of business loans offered by HDFC bank is Rs 40 lakhs. And the most amazing fact is that while receiving the business loan, a consumer does not need to provide any collateral, guarantor, or security. The interest rate starts from 15.00% to 21.20%. The minimum tenure period is one year and the maximum tenure period is four years. Minimum a consumer can get a loan of Rs 50,000, and the total amount is Rs 5,000,000. You can find every detail on their official website.
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SBI Bank
It is one of the best banks for a business loan under public sector banks. The safety and security measurements of this bank are the top quality. The key reason this bank is behind offering the business loan is to support small businesses and entrepreneurs. The interest rate starts from 9.05% – 16.30%. The minimum tenure period is five years and the maximum tenure period is 15 years. Minimum a consumer can get a loan of Rs 10 lakh, which is 52 lakhs. However, to apply and process a business loan, consumers have to pay a certain amount of money. The entire fee is just Rs.7, 500 for inspection, processing, documentation, commitment, and remittance charges.
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ICICI Bank
One of the top private banks in India. The interest rate starts from 10% to 11.10%. The minimum tenure period is 1 year and the maximum tenure period is 7 years. Minimum a consumer can get a loan of Rs 1 lakh and the maximum amount is 40 lakhs. The bank takes 2% of the loan amount as the processing fee. They also take guarantee fees which are 0.75% – 0.85%. ICICI bank provides a wide range of business loan options which makes it easy for the consumers to select one which is appropriate for them.
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AXIS Bank
Another top private bank in India will mainly be well-known for their premium quality services and also provide competitive interest rates. The interest rate starts from 15%. The minimum tenure period is 3 years and the maximum tenure period is 15 years. Minimum a consumer can get a loan of Rs 50,000 and the maximum amount is Rs 5,000,000. The entire fee is just Rs.4, 000 for inspection charges, processing fees, documentation charges, commitment charges and remittance charges. They also take charges of Rs 500 + taxes for cheque bounce.
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IDFC Bank
It is a quite good bank if you are looking for a business loan or take it as a personal loan. The business loan from this bank is obtainable for business plus professionals as well as non-professionals. The interest rate starts from 16% to 24%. The processing charge is 2.49% of the total loan amount. The maximum tenure period is 4 years. Minimum a consumer can get a loan of Rs 1 lakh and the maximum amount is Rs 9 lakh. One thing consumers need to consider is that it is an unsecured loan for which they need to submit any security or collateral.
Each of the banks has specific terms and conditions that you are supposed to abide by to get business loans. You should do your own research to go for a particular bank to get your loan.
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