Banks have the facility to provide business loans in India. These loans can be taken for many purposes related to your business. You may need the loan to invest in business or expanding your existing business. Any person running a legitimate business and having a decent turnover is eligible to apply for business loans in India. Banks also offer small business loans in India. These loans help in expansion plans of any small business.
Almost all the banks offer business loans. Each bank has its own eligibility criteria and validation process to approve business loans. It is up to the bank’s discretion to approve or disapprove the loan. LogintoLoans offers assistance in finding the business loan that fits your needs the best. We have a platform to provide the details of different types of loans and categories of lenders. Our interactive services help you assess the available loan option and your requirements. Taking on the task of comparison yourself would be time consuming and tedious. Leave it to us to bring to you the lowest interest rates for your small business loans in India.
Types of Business Loans
Overdraft Loans – This is the most common type of business loans in India. Banks provide overdraft loans to business against some collateral or security especially in terms of Fixed Deposits.
Unsecured Business Loans – These loans are taken up by business to help fund their working capital. These loans may be issued by banks or third-party lenders. These business loans are approved based on the credit history and repayment capability of the business. For businesses that are too new to have a credit history, the banks/lenders look for a good profitability and success track record.
Working Capital Loan – Working capital loans are provided by banks to help businesses handle current day-to-day expenses. These loans can cover expenses like payroll, renovations, advertising and inventory purchases. These are short-term loans where the interest is charged only on the amount used, not on the sanctioned amount.
Start-up Business Loans – These loans are meant for small and medium enterprises that are just starting-up. These loans are difficult to get approved. The banks look at the business plan, revenue model, educational background of the owner and many other aspects before giving the approval.
Features & Benefits
Some of the features and benefits of business loans in India are listed here.
Business loans in India can be range between Rs. 50,000 and Rs. 75 Lakhs.
These loans involve simple processes and usually get approved fairly quickly.
Doorstep Service – LogintoLoans provide door-step services for business loans in India. Just take an appointment with any of our representatives and get assistance in completing the formalities for the loan.
We help in getting quick approvals.
Minimal paperwork and hassle-free processing
Attractive interest rates
LogintoLoans provides a good comparison of business loans in India. The chart below gives the details of interest rates and processing fees for different banks.
Business loans in India have many benefits.
Less Documentation and Quick Approval – Business loans in India are offered by banks and other financial institutes to promote self-sustainability and growth of economy. These loans require minimum documentation. They are also quickly approved if you have a good credit history and have a good, profitable business plan.
Plan Repayments – Repayment of the business loans can be structured according to the capabilities of the business at the discretion of the lender. Banks offer different interest rates and loan tenure to cater to a variety of business needs. These loans usually do not have pre-payment penalty also.
Affordable Interest Rates – Business loans are usually taken in huge amounts to cater to the needs of the business. Banks provide these loans at competitive interest rates based on the loan tenure, market situations and borrower’s credentials.
Various Business Needs – Business loans offered by banks and other financial institutes help businesses take care of many of the business needs. Small business loans in India can help start-up businesses setup their ground in the market. These loans are also designed to help businesses with working capital, equipment financing and to fill any other cash flow gaps.
How to increase the chances of business loan approval?
Business loans in India are easy to land for legitimate businesses with a profitable business plan. There are, however, certain actions that can help you in making your loan approval even easier.
Insuring your business assets can increase the chances of loan approval.
Having a well drafted business plan with good clarity on the future of the business will help the lenders make faster decisions.
Having documents required for your business loan ready helps getting the approval quicker. Third-party loan services providers like LogintoLoans can help in this process.
The idea of the business and the presentation of the same are very important for getting start-up loans approved.
The testimonials from our customers speak volumes about out services. We help you secure the best business loans in India for your business need.
Self-employed individual/Limited or private limited firm/Manufacturer or service provider.
Practise certificate, Proof of ownership of the possessions which are used for business purpose, KYC documents of a co-applicant(if any).
Bank/ lender name
Not exceeding 2.5% of loan amount sanctioned. Min. Rs. 1000, Max. Rs. 25,000.
1% to 3% of loan sanctioned
15.50% to 24%
1.5% to 2% of loan sanctioned
Min. Rs. 999
Not exceeding 2.5% of loan amt
2.25% to 3% of loan sanctioned
Up to 5% of loan amount
Min. Rs. 270
Not more than 2.5% of loan amt.
Processing Fees below 2%
Standard Chartered Bank
Not more than 2.25% of loan amt
Processing fees Rs. 1000
Processing Fees 1.5%
Processing Fees 1.5%
Processing Fees Not more than 2.5%
Less Documentation and Quick Approval
In the developing countries like India, banks are willing to lend money to the entrepreneurs to encourage self-sustainability and growth of the economy. If you can show up a good credit score and show up the well-drafted business plan with good future prospects for the business, you can get the business loan approved quickly with less documentation.
There are a number of business loans available with varying interest rates and loan tenure. You can plan the repayment of the loan according to your repayment capability. This flexibility will help you keep away financial difficulties while servicing loans. You can choose to repay your business loan early with idle funds without the fear of pre-payment penalty.
Affordable Interest Rates
Business loans are huge most of the times, so lenders sanction them at affordable interest rates. The interest rates on these business loans vary from person to person and entirely depend on loan tenure, market situations, and borrower credentials.
Various Business Needs
Business loans are crafted by the lenders to assist various business requirements at best. These loans are sanctioned for the start-up business, working capital loans, equipment financing and other fill cash flow gaps in business.
How to increase the chances of business loan approval?
Hearing good news about your business loan getting approved is very exciting. Apart from our assistance, there is a workout at your end to increase the chances of business loan approval.
Have your business assets insured to increase the chances of business loan approval
Well, planned business plan with good future prospects will convince the lender easily.
Check your eligibility for the business loan and have all the stated documents handy for quick approval.
Your idea of business and presentation are very important for start-up loans.