Which Bank is Best for a Business Loan: With so many options available, choosing the best banks for business loans can be challenging. Among the top 10 business loan companies in India are Axis Bank, Bajaj Finserv, Flexi Loans, HDFC Bank, Lending Kart, Tata Capital, Neo Growth Finance, and more. Apart from private players, a business loan by Government is also a great option to pursue your business dreams.
Loan seekers can also take advantage of Government subsidy loan for business which comes with a reduced interest rate compared to non-government lenders.
In this post, we will discuss all the best options for you to pick a business loan that can best serve your business dreams including Business loan interest rate of all banks, Business Loan by Government, and Government subsidy loan for Business.
Let’s begin with the business loan interest rate for all banks offered by the top 10 business loan companies in India.
Top 10 Business Loan Companies in India
Many people, especially those who have started their own business, face difficulties such as not having enough money to pay employees, growing the business to new locations, starting a new project, buying a new asset, etc. In these circumstances, banking institutions save the day by lending money to fund projects and activities. Check the list below for the top 10 business loan companies in India:
• HDFC Business Loan
• AXIS Bank Business Loan
• SBI Bank Business Loan
• ICICI Bank Business Loan
• Kotak Mahindra Bank Business Loan
• IDFC First Bank Business Loan
• Bajaj Finserv
• Tata Capital
• Lending Kart Business Loan
• Citi Bank Business Loan
The word “loan” causes everyone to mentally do a quick statistical analysis before they can choose from the top 10 business loan companies in India mentioned above. A person in need of a loan considers a lot of criteria before making a decision but the interest rate is the thing that strikes the mind. Comparing the Business loan interest rate of all banks is the first step in securing a quick loan.
Business loan interest rate of all banks
| Bank/NBFCs | Interest Rate |
| Axis Bank | 10.75% p.a. onwards |
| Bajaj Finserv | 9.75% – 30% p.a. |
| Flexi loans | 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. |
Types of Business Loans
• Term Loan (Short-term, Intermediate-term and Long-term Loan)
• Overdraft
• Cash Credit
• Working Capital Loan
• Letter of Credit
• Bill Discounting
• Equipment Finance or Machinery Loan
• Business Loan by Government schemes (CGTMSE, SIDBI, Mudra, PMEGP, CLCSS, NABARD, PMRY, MSME 59-minute loan scheme, etc.)
• Point-of-Sale (POS) Loans
HDFC Business Loan
The HDFC Business Loan is intended to help companies who want to grow, control their cash flow, or make investments in new ventures. Since most of these loans are unsecured meaning that borrowers are not required to provide collateral—many SMEs can obtain them.
Types of HDFC Business Loan Offers
To meet various financial demands, HDFC Business loan comes in a variety of options, including:
• Business Growth Loans: Ideal for businesses looking to expand operations or invest in new projects.
• Working Capital Loans: Designed to help businesses manage their day-to-day operational expenses.
• Commercial Vehicle Loans: For purchasing vehicles essential for business operations.
• Letters of Credit and Bank Guarantees: To facilitate secure transactions in international trade.
• Commercial Construction Equipment Financing: For businesses involved in construction or related industries.
HDFC Business Loan Interest Rates
| Type of Loan | Interest Rate (p.a.) |
| Fresh Business Loans | 10.75% – 22.50% |
| Working Capital Loans | 11.90% – 21.35% |
| Commercial Vehicle Loans | 11.01% – 14% |
Axis Bank Business Loan
Interest rates for Axis Bank Business Loan begin at 10.75% p.a. for loans up to Rs 10 crore with repayment terms of up to 15 years. Additionally, Axis Bank provides bills of exchange and letters of credit.
| Axis Bank Business Loan Highlights | |
| Interest rate | 10.75% p.a. onwards |
| Loan amount | Up to Rs 10 crore |
| Repayment tenure | Up to 15 years |
Interest Rates of Axis Bank Business Loan
| Product | Interest rate (p.a.) (floating) |
| Overdraft | 10.75% – 11.75% |
| Cash Credit | 10.75% – 11.75% |
| Term loan | 10.75% – 11.75% |
| Unsecured OD | 12.10% – 16.10% |
| Quick OD | 19.50% – 20.50% |
| CGTMSE | 15% – 16.75% |
| Unsecured merchant loan | 18% – 19% |
| Overdraft against FD | 11.50% – 12.50% |
Business Loan Interest Rates SBI
The Business Loan Interest rates SBI has an interest rate that starts at 9.10% per annum. The lender offers the following business loan interest rates SBI for its business schemes:
|
Business Loan Interest Rates SBI |
|
| Interest Rate | 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: 9.55% For other SBI Business Loan Schemes: Linked to the existing EBLR (external benchmark lending rate) & MCLR (marginal cost of funds based lending rate) |
| Loan Amount | Up to Rs 500 crore |
| Loan Tenure | Up to 15 years |
Business Loan by Government
Business loan by Government entities are intended to support small businesses to grow and provide funds for young entrepreneurs to start their ventures. The following are a few examples of business loan by Government programs:
| S. No. | Business Loan by Government |
| 1. | MSME Loan Scheme in 59 Minutes |
| 2. | Pradhan Mantri MUDRA Yojana (PMMY) |
| 3. | National Small Industries Corporation |
| 4. | Credit-Linked Capital Subsidy Scheme |
| 5. | SIDBI Loan |
Government subsidy loan for Business
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 Government subsidy loan for business programs to support small businesses. Small and medium-sized businesses can use these loans to finance daily operations, business expansion, equipment purchases, etc.
| 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 |
Which loan is best for a business?
The type of loan you’re searching for and your company’s needs will determine which loan is best for a business. Among the things to think about are:
• Loan sum: The amount of money required to finance your company
• Loan term: The amount of time you have to repay the loan
• Collateral: Whether collateral is required to obtain the loan
• Interest rate: How quickly you will repay the loan
• Eligibility: If you fulfil the requirements to be eligible for the loan
Which bank is best for a business loan for Micro, Small, and Medium, enterprises?
Your needs and the bank’s products will determine which bank is best for a business loan for your MSME business. MSME business loan interest rates might vary from 8.50% to 10.60% annually. BIR Credit Solutions provides a one-stop solution for individuals looking for a business loan to boost their operations and profits.
Which Bank is Best for a Business Loan FAQs
Q1. Which bank is best for a business loan?
BIR Credit Solutions provides the best interest rates on a business loan depending on your credit history and loan tenure.
Q2. Is there no interest on an MSME business loan?
When compared to other business financing options, interest rates on an MSME business loan are often lower.
Q3. What is the MSME 15 lakh subsidy?
For certain sectors, subsectors, and technologies, this scheme offers an upfront 15% discount on institutional financing up to Rs. 1 crore (i.e., a subsidy cap of Rs. 15 lakh).