10 Best Lenders for Business Loans in India 2024
When it comes to securing financial support for your business, selecting the right lender is crucial. In India, the growing economy has fostered a thriving lending environment with many top-tier institutions offering business loans at competitive rates. Whether you’re a startup entrepreneur or an established business owner looking to scale up, finding a lender that aligns with your financial needs can be the game-changer you need. With a variety of options available, from traditional banks to innovative fintech companies, choosing the best business loan lender can feel overwhelming.
This comprehensive guide will walk you through the top 10 lenders offering business loans in India, exploring their unique features, loan options, and why they stand out in the competitive market. From government-backed institutions to private banks and online lenders, we’ve got you covered. By the end of this article, you’ll have a clear understanding of which lender is right for you and your business’s unique needs.
But first, let’s quickly look at some key data points that will help you choose the best lender for your business loan.
Best Lenders for Business Loans in India 2024
| Lender Name | Loan Amount Range | Interest Rate (%) | Loan Tenure | Key Features |
|---|---|---|---|---|
| State Bank of India (SBI) | ₹10,000 to ₹500 Crore | 7.50% to 13.60% | 12 months to 5 years | Government-backed, low-interest options |
| HDFC Bank | ₹50,000 to ₹75 Lakh | 10.25% to 16% | 1 to 5 years | Quick approval, flexible repayment terms |
| ICICI Bank | ₹3 Lakh to ₹75 Lakh | 11.25% to 21% | 1 to 7 years | Personalized loan options, fast processing |
| Axis Bank | ₹50,000 to ₹50 Lakh | 12% to 22% | 1 to 5 years | Collateral-free loans for SMEs |
| Kotak Mahindra Bank | ₹1 Lakh to ₹75 Lakh | 10.50% to 17.75% | 1 to 5 years | Low processing fees, easy application |
| Bajaj Finserv | ₹50,000 to ₹50 Lakh | 13% to 24% | 12 months to 5 years | Quick disbursement, minimal paperwork |
| LoanTap | ₹50,000 to ₹10 Lakh | 15% to 24% | 12 months to 3 years | No collateral, flexible repayment |
| Tata Capital | ₹75,000 to ₹50 Lakh | 10.99% to 18.50% | 1 to 5 years | Tailored loans for businesses |
| Fullerton India | ₹50,000 to ₹50 Lakh | 14% to 24% | 12 months to 5 years | Flexible loan terms, no hidden charges |
| IDFC First Bank | ₹1 Lakh to ₹25 Lakh | 9.50% to 15% | 12 months to 5 years | Transparent fees, quick loan processing |
10 Best Lenders for Business Loans in India 2024
1. State Bank of India (SBI): The Government-Backed Powerhouse
SBI, the largest public sector bank in India, is a trusted name in the financial world. For business loans, SBI offers some of the most competitive interest rates in the industry. With the backing of the government, businesses can enjoy long loan tenures and a wide range of loan amounts to suit different needs.
Key Features of SBI Business Loans:
- Loan Amount: ₹10,000 to ₹500 Crore
- Interest Rate: 7.50% to 13.60%
- Repayment Tenure: Up to 5 years
- Processing Fees: As low as 0.50% of the loan amount
- Collateral: May be required for larger loan amounts
Why Choose SBI? SBI’s business loan options are perfect for both small businesses and large enterprises. The government’s involvement ensures better rates and terms, making it a go-to option for many entrepreneurs.
2. HDFC Bank: Fast, Reliable, and Flexible Business Loans
HDFC Bank is known for offering a variety of business loans with flexible terms. From quick approval times to easy documentation, HDFC stands out in terms of customer service and support.
Key Features of HDFC Business Loans:
- Loan Amount: ₹50,000 to ₹75 Lakh
- Interest Rate: 10.25% to 16%
- Repayment Tenure: Up to 5 years
- Processing Fees: Around 1% of the loan amount
- Collateral: Secured and unsecured loan options available
Why Choose HDFC? With its streamlined application process and low processing fees, HDFC Bank is ideal for businesses seeking quick access to capital without excessive paperwork. The flexibility in loan options makes it an excellent choice for small and medium-sized enterprises (SMEs).
3. ICICI Bank: Personalized Loans for Every Business
ICICI Bank has consistently been one of the top choices for business loans in India. Known for its personalized loan options, ICICI helps entrepreneurs with a tailored approach to securing business loans.
Key Features of ICICI Bank Business Loans:
- Loan Amount: ₹3 Lakh to ₹75 Lakh
- Interest Rate: 11.25% to 21%
- Repayment Tenure: Up to 7 years
- Processing Fees: 1.5% of the loan amount
- Collateral: Secured loans available for larger amounts
Why Choose ICICI? ICICI Bank’s ability to offer customized loan products gives it a distinct edge. The quick approval process and flexible repayment terms are ideal for businesses that need funds promptly.
4. Axis Bank: SME-Focused Loan Solutions
Axis Bank is one of India’s leading private-sector banks, offering a range of loans designed specifically for small and medium enterprises (SMEs). Axis Bank provides hassle-free loan options with minimal documentation.
Key Features of Axis Bank Business Loans:
- Loan Amount: ₹50,000 to ₹50 Lakh
- Interest Rate: 12% to 22%
- Repayment Tenure: Up to 5 years
- Processing Fees: Typically 1-2% of the loan amount
- Collateral: Available for both secured and unsecured loans
Why Choose Axis Bank? Axis Bank’s focus on SMEs makes it a great choice for smaller businesses looking for a supportive lender. With competitive interest rates and minimal processing fees, Axis Bank remains a strong contender in the business loan space.
5. Kotak Mahindra Bank: Easy Loan Application for Growing Businesses
Kotak Mahindra Bank offers a variety of loan products that cater to businesses of all sizes. Their business loans come with flexible terms and competitive interest rates, making it an attractive option for growing companies.
Key Features of Kotak Mahindra Bank Business Loans:
- Loan Amount: ₹1 Lakh to ₹75 Lakh
- Interest Rate: 10.50% to 17.75%
- Repayment Tenure: 1 to 5 years
- Processing Fees: As low as 0.99% of the loan amount
- Collateral: Available for both secured and unsecured loans
Why Choose Kotak Mahindra? Kotak Mahindra Bank is known for its quick loan processing times, transparent loan terms, and a wide range of financing options. For businesses looking for a straightforward loan application process, Kotak Mahindra is an excellent choice.
6. Bajaj Finserv: Fast and Flexible Loan Disbursement
Bajaj Finserv is another top lender in India that offers quick and easy business loans. Bajaj Finserv is particularly popular among small businesses for its quick disbursement process and minimal paperwork.
Key Features of Bajaj Finserv Business Loans:
- Loan Amount: ₹50,000 to ₹50 Lakh
- Interest Rate: 13% to 24%
- Repayment Tenure: 12 months to 5 years
- Processing Fees: 1-2% of the loan amount
- Collateral: Unsecured loan options available
Why Choose Bajaj Finserv? Bajaj Finserv is perfect for businesses needing fast cash. The quick loan processing and minimal documentation make it a go-to choice for small and medium-sized businesses.
7. LoanTap: Flexible, Collateral-Free Loans
LoanTap offers a unique solution for businesses looking for small loans with flexible repayment terms. Unlike traditional lenders, LoanTap offers collateral-free loans with easy application processes.
Key Features of LoanTap Business Loans:
- Loan Amount: ₹50,000 to ₹10 Lakh
- Interest Rate: 15% to 24%
- Repayment Tenure: 12 months to 3 years
- Processing Fees: As low as ₹1,000
- Collateral: No collateral required
Why Choose LoanTap? LoanTap’s innovative lending solutions make it ideal for small businesses that need quick access to working capital without having to pledge any assets.
8. Tata Capital: Tailored Loan Options for Every Business
Tata Capital offers a range of business loans with flexible repayment options. Tata Capital is known for its reliable service and customer-centric approach.
Key Features of Tata Capital Business Loans:
- Loan Amount: ₹75,000 to ₹50 Lakh
- Interest Rate: 10.99% to 18.50%
- Repayment Tenure: 1 to 5 years
- Processing Fees: As low as 1% of the loan amount
- Collateral: Available for both secured and unsecured loans
Why Choose Tata Capital? With its customer-centric approach and wide range of loan products, Tata Capital is a trusted name in business financing.
9. Fullerton India: Flexible Loan Terms for Entrepreneurs
Fullerton India offers a range of business loans designed to meet the diverse needs of Indian businesses. With flexible terms and an easy application process, Fullerton is an excellent choice for entrepreneurs.
Key Features of Fullerton India Business Loans:
- Loan Amount: ₹50,000 to ₹50 Lakh
- Interest Rate: 14% to 24%
- Repayment Tenure: 12 months to 5 years
- Processing Fees: 1-3% of the loan amount
- Collateral: Available for both secured and unsecured loans
Why Choose Fullerton India? Fullerton India offers flexible loan terms and minimal paperwork, making it ideal for small businesses looking for reliable funding options.
10. IDFC First Bank: Transparent and Quick Loan Processing
IDFC First Bank is known for its transparent fee structure and fast loan disbursal. The bank offers competitive interest rates and flexible repayment terms for businesses across India.
Key Features of IDFC First Bank Business Loans:
- Loan Amount: ₹1 Lakh to ₹25 Lakh
- Interest Rate: 9.50% to 15%
- Repayment Tenure: 12 months to 5 years
- Processing Fees: 1% of the loan amount
- Collateral: Unsecured loans available
Why Choose IDFC First Bank? For businesses looking for transparency and quick processing, IDFC First Bank is an excellent option. The bank’s commitment to customer service and fast loan disbursement makes it a top choice for entrepreneurs.
11. RBL Bank: Customizable Business Loan Solutions
RBL Bank, a prominent private-sector bank in India, offers a wide range of business loans tailored to meet the diverse needs of entrepreneurs and businesses. Known for its innovative loan products, RBL Bank provides both secured and unsecured loan options with flexible terms and competitive interest rates.
Key Features of RBL Bank Business Loans:
- Loan Amount: ₹50,000 to ₹50 Lakh
- Interest Rate: 13% to 22%
- Repayment Tenure: 12 months to 5 years
- Processing Fees: Around 1-2% of the loan amount
- Collateral: Available for both secured and unsecured loans
Why Choose RBL Bank? RBL Bank’s customer-focused approach and flexible loan options make it a great choice for businesses looking for personalized financial support. With easy online applications and quick loan disbursals, RBL Bank ensures a hassle-free borrowing experience for small and medium-sized enterprises (SMEs). Whether you need capital for expansion or working capital, RBL Bank offers a solution that can be tailored to your business’s unique needs
FAQs:
- What is the best lender for small business loans in India?
- HDFC Bank, SBI, and ICICI Bank are some of the best options for small business loans in India, offering competitive rates and flexible terms.
- Can I get a business loan without collateral in India?
- Yes, many lenders like LoanTap, Bajaj Finserv, and Axis Bank offer collateral-free business loans.
- How fast can I get a business loan in India?
- Some lenders, such as Bajaj Finserv and LoanTap, offer fast disbursements within a few days.
Conclusion
Choosing the right lender for your business loan is crucial to your company’s success. Whether you’re looking for fast processing times, competitive interest rates, or flexible repayment terms, each of the lenders on this list offers unique benefits. By considering your specific needs and loan eligibility criteria, you can confidently choose the best lender for your business.