What is the interest rate on a Business Loan: There are several aspects of starting a business, including organizing, staffing, and planning. The most important aspect of properly funding a business is obtaining the right business loan, which is heavily reliant on the interest rate.
To accomplish your business objectives without putting a strain on your finances, you must figure out what is the interest rate on a business loan in India to get the best deal possible. To do so, you must compare the business loan interest rate of all banks to come up with an average number. The finest business loan interest rate in India is provided when you take out a loan at Government business loan interest rates that are tailored to your financial circumstances, desired loan amount, and loan term.
This post will try to answer your questions about business loans including “What is the interest rate on a business loan in India”, “What is the interest rate on a business loan calculator”, “Government business loan interest rates” and “What is the interest rate on a business loan SBI”. Keep scrolling.
Business Loan Interest Rate of All Banks
Banks and non-banking financial organizations (NBFCs) typically offer business loans with interest rates starting at 9% annually. Keep in mind that several variables, like the loan applicant’s credit ratings, the type of business, its revenue, the type of collateral or security, etc., affect the business loan interest rate of all banks. To understand what is the interest rate on a business loan in India before applying, applicants should verify and compare the business loan interest rates of all banks, as these prices may differ from one lender to another.
For example, Government business loan interest rates are lower compared to private ones.
Comparison of Business Loan Interest Rate of all banks 2025
| Bank/NBFCs | Interest Rate |
| Axis Bank | 10.75% p.a. onwards |
| Flexiloans | 1% per month onwards |
| HDB Financial Services Ltd. | 8% – 26% p.a. |
| HDFC Bank | 10.75% – 25% p.a. |
| IDFC First Bank | 10.50% p.a. onwards |
| Indifi | 1.50% per month onwards |
| Kotak Mahindra Bank | 16% – 26% p.a. |
| Lendingkart | 12% – 27% p.a. |
| Mcapital | 2% per month onwards |
| NeoGrowth Finance | 15% – 40% p.a. |
| Tata Capital | 12% p.a. onwards |
| UGRO Capital | 9% – 36% p.a. |
What is the interest rate on a business loan calculator?
To determine the interest rate on your loan and to compare it to the business loan interest rates of all banks and their repayment terms, use the business loan interest rate calculator. Since it assists potential applicants in determining the total amount of EMI on their business loans, the online calculator also serves as an interest calculator. To choose the ideal EMI for a range of interest rates, loan amounts, and payback durations, you can utilize the company loan EMI calculators offered by distinct lenders on their websites or accessible on internet financial marketplaces.
Government business loan interest rates
The Small and Medium Enterprises (SME) sector, also referred to as the small-scale company sector, accounts for around 40% of India’s GDP. Despite being a major employer in India, this industry is fiercely competitive with privately held companies. In light of this, the Indian government has launched several lending programs to support small businesses by offering loans at reasonable Government business loan interest rates. Small and medium-sized businesses can use these loans to finance daily operations, business expansion, equipment purchases, etc.
Government Business Loan Interest Rates and Loan Schemes for Small-Scale Businesses
| Name of the Scheme | Rate of Interest (p.a.) | Loan Amount | Repayment Tenure |
| SIDBI Make in India Loan for Enterprises (SMILE) | At the discretion of SIDBI | Rs.10 lakh onwards | Up to 10 years including 3 years moratorium |
| Pradhan Mantri Mudra Yojana (PMMY) | Varies from bank to bank | Up to Rs.10 lakh | Varies from bank to bank |
| Credit Guarantee Scheme | – | Up to Rs.5 crore | – |
| Bank Credit Facilitation Scheme | Varies from bank to bank | Varies from bank to bank | 5 years to 7 years |
| Stand-Up India Scheme | Up to base rate + 3% + tenor premium | Rs.10 lakh to Rs.1 crore | 7 years |
| MSME Loans | 8.5% onwards | Rs.1 lakh to Rs.5 crore | As per the bank |
What is the interest rate on a business loan SBI?
SBI offers a variety of business loan options to meet a variety of financial demands. These consist of financial instruments for trade transactions, customized financing for lease income, long-term finance for expansion, specialized credit for distribution networks, and financing options for export activities.
SBI provides asset-backed loans, financing using warehouse receipts, flexible credit lines for working capital, loans specifically for construction equipment, and solutions for a range of business financial needs. With flexible loan terms of up to 15 years and maximum loan amounts of Rs 500 crore, SBI Business loans offer significant assistance for the development and expansion of businesses.
What is the interest rate on a business loan SBI to meet your financial requirements?
Business loan SBI Highlights
To learn about the main features of the SBI Business loan, see the table below:
| Interest Rate | 9.10% P.A. |
| Loan Amount | ₹25,000 – ₹500 Crores |
| Tenure | Up to 15 years |
What is the interest rate on a business loan SBI?
The interest rates on business loans offered by the State Bank of India (SBI) are in line with the current Marginal Cost of Funds Based Lending Rate (MCLR) and External Benchmark Lending Rate (EBLR). The SBI Business Loan’s general interest rate, however, begins at 9.10% p.a. The lender’s business loan interest rates for its business plans include:
| Factors | Interest Rates (p.a.) |
| For SBI Business Loan to Business Correspondents | 11.40% p.a. |
| For SBI Business Loan for Finance to Food Processing Industry | 9.10% to 11.55% (for MCLR linked loans) and 9.20% to 11.65% (For RLLR linked loans) |
| For SBI SME Gold Loan | 9.75% |
SBI Business Loan Fees & Charges
Effective financial planning and a clear understanding of the total cost of an SBI business loan depend on these fees and levies:
| Loan amount | ₹25,000 – ₹500 Crores |
| Processing fees | Upto 1% of the limit |
| Tenure | Up to 15 years |
Ways to Reduce Business Loan Interest Rate of all banks
- Keep your credit score high.
- To secure your loan, provide security or collateral.
- Keep your cash flows healthy.
- Refinance your current loans with higher interest rates and compare business loan offers from as many lenders as you can.
- Verify your eligibility to get interest subsidies under government programs.
What is the interest rate for a business loan?
A business loan’s annual interest rate might vary from 10% to 44%. The loan type, the borrower’s credit score, and other variables all affect the rate. Business people should compare the interest rates of all banks by using the business loan EMI calculator to determine which bank is best for business loans.
What is the interest rate on a business loan offered by different banks is determined by various factors listed below:
• Loan type: Compared to unsecured loans, secured loans have lower interest rates.
• Credit score: A lower interest rate may be the consequence of a higher credit score.
• Income stability: A lower interest rate may be the outcome of a higher yearly turnover.
• Collateral: Secured loans feature lower interest rates and call for collateral.
• Relationship with the financial institution: The interest rate may be impacted by the borrower’s relationship with the financial institution.
What is the Interest rate on a Business Loan FAQs
Q1. What is the interest rate for a business loan HDFC?
HDFC Bank offers business loans with interest rates ranging from 10.75% to 25% annBusiness loan interest rates SBIually. The type of loan and its duration determine the interest rate.
Q2. Does a loan with an interest rate of 5% make sense?
Except for mortgages, almost all forms of borrowing can benefit from an APR of 5%. 5% is far less expensive than the typical rate on credit cards, auto loans, student loans, and personal loans.
Q3. Can I obtain a business loan of Rs. 5 lakh?
BIR Credit Solutions provides Rs. 5 lakh in business loans without collateral to assist you in covering your working capital costs.
