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Business Loans for Manufacturing, Trading & Services

Apply for instant business loans up to ₹2 Crore at competitive interest rates. Special schemes for women entrepreneurs, startups, and small businesses.

High Business Loan Eligibility

Prepare a business plan, know your credit score, decide loan amount, do market research, keep documents ready.

Common Documents Required

ID & address proof, business proof, income proof, partnership deed, PAN card, MOA, board resolution, etc.

Criteria for Approval

Applicants aged 21-65, minimum 3-year business vintage, minimum annual turnover, profit-making business for 1+ year.

Business Loan Details

Rate of Interest Loan Amount Repayment Tenure Processing Fee Min Business Vintage Prepayment Charges Age Required
Competitive Interest Rates Up to ₹500 Crores Up to 20 years Up to 3.5% 3 Years Up to 6% 21 - 65 Years

Key Features of Business Loan

  • Purpose: For business expansion, working capital, machinery purchase, infrastructure, etc.
  • Loan Amount: Depends on project assessment, projected cash flow, promoter profile, and repayment plan.
  • Interest: Varies per lender, loan quantum, business sector, and customer profile.
  • Security: Up to ₹2 Crore may be collateral-free; covered by Credit Guarantee Scheme. Collateral for higher amounts.
  • Repayment: Term loans 3-20 years; working capital 6-12 months renewable annually.
  • Processing Fee: Up to 3.5% depending on bank/loan type.
  • Prepayment Charges: Nil to 6% based on lender.

Types of Business Loans

Working Capital Finance

Short-term finance to manage day-to-day operations, liquidity gaps, or sudden increase in business volume. Interest levied only on utilised amount.

Term Loans

Long-term finance for capital investments like building, machinery, or infrastructure. Repayment up to 20 years depending on project.

Invoice Financing

Finance against unpaid invoices for short-term liquidity. Up to 80% of invoice value released, remaining on payment collection.

Equipment Financing

Funds for manufacturing, office, healthcare, or construction equipment. Project-based financing with collateral for large loans.

PMMY (Pradhan Mantri Mudra Yojana)

Loans for MSME sector, ₹50,000 – ₹10 Lakhs to encourage entrepreneurship under government scheme.

Stand-up India

Encourages SC/ST & women entrepreneurs to start new ventures. Requires major shareholding by eligible applicants.

Compare Business Loan Rates from Top Banks/NBFCs

Name of Lender Rate of Interest (per annum) Processing Fee Maximum Loan Limit
Bank of Baroda As per bank policy As per bank policy ₹200 Crores
HDFC Bank 11.90% - 21.35% 0.99% - 2.50% ₹50 Lakhs
Axis Bank 9% - 18.50% Up to 2% + taxes ₹50 Lakhs
SBI Competitive rate linked to EBLR & MCLR 0% - 1% ₹500 Crores
Kotak Mahindra Bank Competitive interest rates Up to 2% ₹75 Lakhs
ICICI Bank 10% - 11.10% Up to 2% + taxes ₹2 Crores
IDFC FIRST Bank Competitive interest rates Up to 3.5% ₹7 Crores