The recent focus on promoting new businesses has led to the emerging of many small and medium businesses in the country. However, funding for new businesses is not always easy to secure. Entrepreneurs often fall back to other options to get their ideal realised, and banks provide a viable alternative. Business loans have thus become an important part of the Indian financial scenario.
Business loans are used for several purposes such as starting a business, sustaining the costs of an existing business, and for expanding production or venturing into new avenues. There are a lot of banks that offer good interest rates on business loans too. Some of those banks and their interest rates have been highlighted here.
State Bank of India
SBI is the biggest bank in the country with over 14,000 branches all over India. It is a government owned bank headquartered in Mumbai, Maharashtra. The bank offers attractive business loans with an interest rate ranging from 11.20% to 16.30%. The minimum amount for business loans is Rs. 5 lakh and the maximum is Rs. 1 crore. The period or tenure ranges from 12 to 48 months. With these numbers, the lowest EMI starts from Rs. 2,594 per lakh, a figure which is lucrative as well as easy to manage for a small business. These features make SBI an ideal bank for business loan applicants.
ICICI Bank
ICICI bank is the largest private sector bank in the country. It is also the second biggest bank in India. ICICI has around 4,450 branches in different parts of the country. They offer a range of financial solutions including business loans. Their business loan interest rates are in the range of 12.15% to 16.65%. The maximum borrowing limit is up to Rs. 1 crore. The tenure is for a period of 12 to 84 months with the EMI amount starting at Rs. 1,773 per lakh. ICICI has several schemes within their business loan offering, each tailored to a different need. The diversity has worked well for ICICI and attracts a large number of applicants.
HDFC Bank
HDFC Bank is one the leading banks in India. It is the second largest private bank in the country and has around 4,555 branches across India. HDFC’s business loans have some of the most lucrative interest rates in the country with a range of 15.50% to 18.30%. The applicants must note that a loan processing fee of up to 2.50% of the total loan amount will be charged. The processing fee can range between Rs. 1,000 to Rs. 75,000, depending on the size of the principal loan amount. Another thing to note is that no prepayment would be accepted till 6 EMIs have been completed. Despite these restrictions, HDFC still has some of the most competitive offerings for entrepreneurs looking to finance their business ideas.
PNB
Punjab National Bank is a prominent state-owned bank that has a wide range of financial products. Headquartered in New Delhi, the bank has around 6,968 branches all over the country. PNB offers competitive interest rates for individuals looking for a business loan. The bank offers interest rates between 12.60% and 15.60%. The loan amount starts from Rs. 50 thousand and goes up to Rs.15 lakh. The tenure ranges from 12 months to 60 months and the EMI starts at Rs. 2,255 per lakh. There are no prepayment or foreclosure charges and the processing fee is 1.8% of the total amount plus taxes.
Standard Chartered Bank
Standard Chartered Bank is an internationally renowned private bank with its headquarters in London, UK. It has 1,200 branches in more than 70 countries and has a workforce of over 87,000 people. The bank offers competitive business loans with fixed interest rates starting from 11.99% to 17%. There is no processing fee and an applicant can borrow up to Rs. 30 lakh. The tenure ranges from 1-5 years.
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