10 Best Business Lenders in India 2024
In today’s fast-paced economy, businesses of all sizes need access to funding to fuel their growth and achieve their goals. Whether you’re a small start-up or a well-established enterprise, finding the best business lender can be a game-changer. But, with a plethora of lenders available in India, how do you know which one is the right fit for your business?
This guide takes you through the 10 best business lenders in India 2024 that cater to a wide range of business needs—from working capital and expansion to equipment financing and emergency funding. Each lender has its unique offerings, interest rates, and eligibility criteria, so it’s crucial to choose the one that aligns with your business goals and financial standing.
Business Lenders in India 2024
| Lender Name | Loan Type Offered | Interest Rate | Loan Amount Range | Loan Tenure |
|---|---|---|---|---|
| HDFC Bank | Term Loans, Working Capital | 10.5% to 18% p.a. | ₹50,000 to ₹50 Lakhs | 1 to 5 years |
| Bajaj Finserv | Business Loans, Line of Credit | 13% to 20% p.a. | ₹1 Lakh to ₹30 Lakhs | 12 to 60 months |
| ICICI Bank | MSME Loans, Equipment Financing | 11% to 17% p.a. | ₹1 Lakh to ₹40 Lakhs | 12 to 48 months |
| Axis Bank | Business Loans, Overdrafts, Loans Against Property | 13% to 18% p.a. | ₹1 Lakh to ₹50 Lakhs | 1 to 5 years |
| Kotak Mahindra Bank | Working Capital Loans, Term Loans | 10% to 17% p.a. | ₹50,000 to ₹25 Lakhs | 12 to 60 months |
| Tata Capital | Business Loans, Equipment Finance | 11% to 21% p.a. | ₹75,000 to ₹30 Lakhs | 12 to 60 months |
| RBL Bank | Business Loans, Overdrafts, SME Loans | 12% to 18% p.a. | ₹1 Lakh to ₹25 Lakhs | 12 to 60 months |
| Fullerton India | Business Loans, Working Capital | 16% to 26% p.a. | ₹1 Lakh to ₹10 Lakhs | 12 to 48 months |
| Lendingkart | Short-Term Business Loans, Line of Credit | 18% to 24% p.a. | ₹50,000 to ₹10 Lakhs | 3 to 12 months |
| SME Corner | MSME Loans, Working Capital | 18% to 24% p.a. | ₹50,000 to ₹5 Lakhs | 12 to 36 months |
1. HDFC Bank: The Leader in Business Financing
Overview
HDFC Bank is one of India’s leading private-sector banks, known for its diverse range of financial products and services. Their business loans cater to various types of businesses, offering flexible repayment terms and competitive interest rates. They provide term loans, working capital loans, and loans against property, which can be a great option for both small and large enterprises.
Loan Products Offered
- Term Loans: For businesses looking for funds to expand operations.
- Working Capital Loans: To meet short-term cash flow needs.
- Loan Against Property: For businesses that need larger amounts of financing with lower interest rates.
Key Features
- Loan amounts ranging from ₹50,000 to ₹50 lakhs.
- Quick loan approval and disbursement process.
- Flexible repayment terms ranging from 1 to 5 years.
- Competitive interest rates (starting at 10.5% p.a.).
- Option to apply for a loan online, reducing the paperwork burden.
2. Bajaj Finserv: Fast and Flexible Business Loans
Overview
Bajaj Finserv is another strong contender in the business lending space. The company offers a variety of loans tailored for small and medium enterprises (SMEs). Bajaj Finserv is particularly known for its quick loan approval process and minimal documentation requirements.
Loan Products Offered
- Business Loans: Unsecured loans that can be used for various business needs.
- Line of Credit: A flexible financing option where businesses can borrow as per their requirement and pay interest only on the amount used.
Key Features
- Loans ranging from ₹1 lakh to ₹30 lakhs.
- Fast approval and disbursement (within 24 hours).
- Interest rates starting at 13% p.a.
- No collateral required for unsecured loans.
- Flexible loan tenure ranging from 12 to 60 months.
3. ICICI Bank: A Trusted Name in Business Financing
Overview
ICICI Bank has built a reputation for providing comprehensive financial services to businesses in India. The bank offers a variety of business loan options, including MSME loans, equipment financing, and overdraft facilities.
Loan Products Offered
- MSME Loans: Loans designed specifically for micro, small, and medium enterprises.
- Equipment Financing: To help businesses buy machinery or equipment.
- Working Capital Loans: For managing day-to-day cash flow.
Key Features
- Loan amounts ranging from ₹1 lakh to ₹40 lakhs.
- Competitive interest rates starting at 11% p.a.
- Flexible repayment tenures (12 to 48 months).
- Online application process with fast approval.
4. Axis Bank: Tailored Solutions for Businesses
Overview
Axis Bank is one of India’s largest private-sector banks, offering a wide range of business financing products. Their business loans are highly customizable, allowing businesses to choose from term loans, overdrafts, and loans against property based on their specific needs.
Loan Products Offered
- Business Loans: For funding expansion or operations.
- Overdrafts: A flexible credit facility to meet working capital requirements.
- Loans Against Property: For businesses looking for large amounts of capital with favorable interest rates.
Key Features
- Loans ranging from ₹1 lakh to ₹50 lakhs.
- Interest rates starting from 13% p.a.
- Loan tenure ranging from 1 to 5 years.
- No prepayment penalty for business loans.
- Online application and easy documentation process.
5. Kotak Mahindra Bank: Business Financing Made Easy
Overview
Kotak Mahindra Bank is a well-known name in the Indian financial services space. The bank offers various types of business loans that cater to different business needs, such as working capital loans and term loans.
Loan Products Offered
- Working Capital Loans: For meeting daily business expenses.
- Term Loans: For funding business expansion.
- Business Overdraft: A short-term loan option for managing liquidity issues.
Key Features
- Loan amounts ranging from ₹50,000 to ₹25 lakhs.
- Interest rates starting from 10% p.a.
- Flexible loan tenure from 12 to 60 months.
- Quick approval and disbursement.
6. Tata Capital: Reliable and Flexible Business Loans
Overview
Tata Capital is another established name in the Indian business lending sector. It offers various types of loans, including equipment financing and business loans. Tata Capital’s loan products are known for their competitive interest rates and flexible terms.
Loan Products Offered
- Business Loans: For working capital and expansion.
- Equipment Financing: To help businesses purchase machinery or equipment.
- Term Loans: For funding long-term business needs.
Key Features
- Loan amounts ranging from ₹75,000 to ₹30 lakhs.
- Interest rates starting at 11% p.a.
- Flexible repayment options ranging from 12 to 60 months.
- Simple documentation process with quick approvals.
7. RBL Bank: Business Financing for SMEs
Overview
RBL Bank provides tailored financial solutions to small and medium-sized businesses (SMEs). It offers unsecured business loans, working capital loans, and loans against property.
Loan Products Offered
- Unsecured Business Loans: For businesses looking for quick funds without collateral.
- SME Loans: Designed for small and medium enterprises to expand or meet working capital needs.
- Loans Against Property: For larger financing needs.
Key Features
- Loan amounts from ₹1 lakh to ₹25 lakhs.
- Interest rates starting from 12% p.a.
- Flexible loan tenure from 12 to 60 months.
- Easy online application process.
8. Fullerton India: Quick and Easy Business Loans
Overview
Fullerton India specializes in providing business loans to SMEs and self-employed individuals. They offer quick and hassle-free loans with minimal documentation.
Loan Products Offered
- Business Loans: To fund expansion, purchase of assets, or working capital.
- Working Capital Loans: For day-to-day business expenses.
Key Features
- Loan amounts from ₹1 lakh to ₹10 lakhs.
- Interest rates starting at 16% p.a.
- Loan tenure ranging from 12 to 48 months.
- Quick disbursement within 48 hours.
9. Lendingkart: Unsecured Loans for Small Businesses
Overview
Lendingkart is a leading fintech company offering unsecured business loans to small businesses across India. The company provides fast and easy loans with minimal documentation requirements.
Loan Products Offered
- Short-Term Business Loans: For urgent working capital needs.
- Line of Credit: A flexible financing option for businesses.
Key Features
- Loan amounts ranging from ₹50,000 to ₹10 lakhs.
- Interest rates starting at 18% p.a.
- Flexible repayment options (3 to 12 months).
- Minimal documentation and quick disbursement.
10. SME Corner: Helping SMEs Grow
Overview
SME Corner specializes in providing business loans to small and medium enterprises. They offer customized loan solutions designed to help SMEs grow and thrive in a competitive market.
Loan Products Offered
- MSME Loans: Designed for small and medium businesses.
- Working Capital Loans: For managing cash flow.
Key Features
- Loan amounts from ₹50,000 to ₹5 lakhs.
- Interest rates starting at 18% p.a.
- Loan tenure from 12 to 36 months.
- Simple documentation process.
11. IndusInd Bank: A Strong Choice for SMEs and Startups
Overview
IndusInd Bank is one of the leading private-sector banks in India, offering a variety of financing options for businesses. Their business loans are tailored to meet the needs of SMEs, startups, and established businesses alike. Known for their customer-centric approach, IndusInd Bank offers flexible loan products with competitive interest rates and quick processing.
Loan Products Offered
- Business Loans: Unsecured loans for various business needs such as expansion, working capital, and operational costs.
- Term Loans: For businesses looking for long-term funding to invest in infrastructure or equipment.
- Loans Against Property (LAP): For businesses requiring larger amounts of financing with lower interest rates.
- Overdraft Facilities: For businesses with fluctuating cash flows, offering quick access to funds.
Key Features
- Loan amounts ranging from ₹1 lakh to ₹25 lakhs.
- Competitive interest rates starting at 11% p.a.
- Flexible repayment tenure ranging from 12 to 60 months.
- Quick approval and disbursement process.
- Minimal documentation and easy application procedure, including online applications.
- No prepayment penalties on loans.
FAQs
1. What is the eligibility for business loans in India?
Eligibility criteria for business loans vary by lender but typically include factors like:
- A minimum number of years in business (usually 1-3 years).
- A healthy credit score (typically above 650-700).
- A minimum annual turnover (varies by lender).
- Proper documentation such as business registration, financial statements, tax returns, and bank statements.
2. How long does it take to get a business loan in India?
The approval process can vary, but many online and fintech lenders offer fast approvals, sometimes within 24-48 hours. For traditional banks, the approval process may take 7-15 business days depending on the loan type and documentation required.
3. Can I get a business loan without collateral?
Yes, many lenders offer unsecured business loans that do not require collateral. However, these loans generally come with higher interest rates and stricter eligibility criteria. Unsecured loans are common among fintech lenders and NBFCs.
4. What is the interest rate for business loans in India?
Interest rates for business loans in India generally range from 10% to 26% per annum. Rates depend on factors such as the type of loan, loan amount, tenure, and the borrower’s creditworthiness.
5. Are there any government schemes for business loans in India?
Yes, the Indian government offers several schemes for business loans, including:
- PMEGP (Prime Minister’s Employment Generation Programme): For new entrepreneurs.
- MUDRA Loans: For micro and small businesses under the Pradhan Mantri MUDRA Yojana.
- CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises): Provides collateral-free loans.
Read more about small businesses providing insurance
6. What types of business loans are available in India?
There are various types of business loans in India:
- Term Loans: For long-term funding.
- Working Capital Loans: For daily operational expenses.
- Equipment Financing: For purchasing machinery or equipment.
- Overdrafts: Flexible credit lines for short-term liquidity.
- Loans Against Property: Secured loans based on property value.
7. How do I apply for a business loan in India?
You can apply for a business loan online or offline. Most banks and lenders provide easy online application portals where you can fill out the application form, submit your documents, and receive approval. For offline applications, you can visit the lender’s branch to apply in person.
8. What is the maximum loan amount I can get for my business?
The maximum loan amount you can get depends on the type of lender and the specific loan product. For instance:
- Banks and NBFCs: Typically offer loans up to ₹50 lakhs or more for established businesses.
- Fintech lenders: Usually offer smaller loans, ranging from ₹50,000 to ₹10 lakhs. Larger loans are often available with collateral backing.
9. What are the repayment terms for business loans in India?
Repayment terms vary by lender and loan type. Most business loans offer repayment tenures between 12 months to 5 years. Repayment frequency can be monthly, quarterly, or as agreed upon by the lender and borrower.
10. Can I apply for a business loan online?
Yes, applying for a business loan online is very common in India. Most banks, NBFCs, and fintech lenders have simplified their application processes, allowing businesses to apply for loans directly through their websites or mobile apps.
Conclusion: Making the Right Choice for Your Business
Choosing the right business lender in India can have a significant impact on the success of your business. Whether you’re looking for a short-term loan to cover operational expenses or a long-term loan for expansion, the lenders mentioned above provide a wide range of options to suit your needs.
It’s essential to compare factors such as interest rates, repayment terms, loan amounts, and eligibility criteria to find the best lender for your business. Remember, the right financing partner can help propel your business toward growth and success.