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Finance

Top 10 Providers of Unsecured Business Loans in India

Nidhi Rai

December 20, 2018 05:35 PM

Business loan is a means to finance one’s financial needs for their business. There are several banks and non-banking companies today that offer unsecured business loans in India. But, which ones are the most reliable and popular? How do you select a loan provider for funding your business? Below, we have listed out 10 top providers of business loan in India, so that you can get all the necessary loan information and choose the one that is most suiting to your requirements.

  • Deutsche Bank : 

Deutsche bank business loan is an unsecured loan. To be eligible for the loan, the business vintage should be at least 5 years.

  • The eligibility is also judged on robustness of the business model, financial ratios, company’s competence, and competitive scenario, quality of management, turnover growth, industry performance, and margins.
  • Loan amount is up to Rs. 50 lakhs.
  • Tenure is up to 3 years and processing is maximum 1 percent of the loan amount.
  • Interest rate is 18% to 24%.
  • Prepayment is allowed only after 9 months from the date of disbursal.
    HDFC Bank

HDFC bank business loan is available for both small and large-sized firms. There is no guarantor or security required. The bank has credit protection plan as added benefit over the loan.

  • Loan amount is maximum Rs. 50 lakhs. Interest rate is as low as 15.65% up to 21.20%.
  • Processing fee is up to 2.5% and as low as 0.99% of the loan amount.
  • Tenure is up to 48 months.
  • No foreclosure is allowed.
  • Part closure can be opted for the first 6 months of the limit setting.
    RBL Bank : 

RBL business loan can be availed by sole proprietorships, self-employed individuals, self-employed professionals, private limited companies, and partnership firms.

  • Loan amount is between Rs. 10 lakhs and Rs. 35 lakhs.
  • Business vintage required is minimum 3 years.
  • Minimum annual business turnover needed is between Rs. 60 lakhs and Rs. 1 crore.
  • Applicant must be at least 27 years old and maximum 65 years at the time of loan closure, to apply for RBL bank business loan.
  • Interest rate is 20 percent and processing fee is up to 2 percent of the loan amount, with tenure of maximum 3 years.
    • ICICI Bank : 

    ICICI bank business loan are of variety of types. Minimum business vintage for existing companies is 3 years. The bank offers loan against credit card to merchants of up to Rs. 2 crore.

    • It provides working capital to organizations and start-ups with vintage of at least 1 year
    • Borrowers can apply for term loans to invest in business and overdraft up to Rs. 15 lakhs.
    • Collateral free loans of up to Rs. 25 lakhs.
    • Term and cash loan under CGTMSE of up to Rs. 1 crore.
    • Loans without financials available of up to Rs. 50 lakhs, and finance for importers and exporters. Interest rate starts at 15.50%.
    •  
      • Kotak Mahindra Bank : 

    Kotak Mahindra bank business loan has a feature of convenient payment option. Borrowing amount is between Rs 3 lakhs and Rs 75 lakhs.

    • The type of loans it offers is crop loan on Kisan credit card (tenure to 5 years).
    • Agri-project loan, loan against property up to Rs. 3 crores for businesspersons.
    • Farm equipment loan, strategic business loan, commercial vehicle finance, and infrastructure/construction equipment finance.
    • Interest rate starts at 16%. Depending on the loan scheme, the tenure, and eligibility criteria would differ.

     

     

    • Axis Bank

     

    Axis bank business loan is both for short-term and long-term business needs. The loan involves minimal documentation and quick processing.

      • Minimum loan amount is Rs. 50 thousand and maximum is Rs. 50 lakhs. Customers have the option to carry over their existing business loans from other banks to Axis bank.

     

      • Apart from companies and proprietorships, even doctors, CAs, and engineers can apply for this loan.

     

      • Processing fee is between 1.25% and 1.5% of the loan amount. Interest rate is between 10.15% – 20.00%.

     

      • Business vintage should be at least 3 years. Age of the applicant must be between 26 years and 65 years to the closure of the loan.

     

    • Tenure is up to 36 months. Minimum turnover of the business should be between Rs. 30 lakhs to Rs. 1 crore.

     

     

    • Aditya Birla Finance

     

    Aditya Birla Finance offers loan for business without security or collateral. Minimum paperwork and flexible tenure are its unique selling points.

      • Aditya Birla business loan offers easy financing up to Rs. 15 lakhs. Interest rate is between 18.5% – 22%. Tenure is up to 36 months.

     

      • Processing fee is up to 2 percent of the loan amount. Business should be a minimum 1 year old.

     

      • Necessary business proof is needed. Current account statement of at least a year is required.

     

      • Minimum age required is 27 years and up to 65 years at loan maturity.

     

    • Minimum cash profit should be Rs. 10 lakhs for a year.

     

     

    • Edelweiss Finance

     

    Edelweiss Finance business loan is for SME and other companies. Edelweiss business loan is for proprietorship firms, self-employed professionals, partnership firms, closely held limited companies, and private limited companies.

      • Interest rate is 18% onwards. Loan amount varies between Rs. 3 lakhs and Rs. 25 crores. But usually, the loan amount limit is Rs. 40 lakhs.

     

      • The company should have vintage of at least 3 years. Minimum turnover required is Rs. 3 crores. Tenure is up to 48 months.

     

      • Equipment loan tenure is up to 60 months, and loan amount starts at Rs. 5 lakhs.

     

      • Prepayment/foreclosure charges can be up to 4%. Loan processing charges are up to 2%.

     

    • Minimum age of the applicant should be 24 years, and not exceeding 55 years at the time of loan maturity.

     

     

    • IIFL

     

    IIFL business loan is to meet financial requirements for a business. The borrower can get instant loan up to Rs. 10 lakhs.

      • Fast track loans are up to Rs. 20 lakhs, and unsecured business loans are up to Rs. 50 lakhs.

     

      • Tenure is between 12 months and 48 months. Loan repayment is via direct debit or electronic clearance service.

     

      • Quick approval and minimal documentation is promised. Rate of interest is between 18% and 25% per annum.

     

      • Processing charges are up to 3% of the loan amount. Prepayment charges are 4% of the outstanding amount.

     

    • Late payment charges are 2% on the overdue amount.

     

     

    • TATA Capital

     

    TATA Capital business loan helps in fulfilling daily capital requirements and funds for companies. It offers SME and MSME loans.

    • Borrowers can avail up to Rs. 50 lakhs as loan.
      • The applicant has to be at least 25 years of age, and not exceed 65 years, at the time of loan closure.

     

      • Business vintage needed is minimum 3 years. Minimum annual tenure required is Rs. 40 lakhs.

     

      • Interest rates range between 19% and 23%.

     

    • TATA Capital also provides special business loan to women, and interest rate are lower than standard loan for business. Women have the option to choose flexi EMI schemes.

    The best business loan for you is one that is suitable to your requirement. Compare all the available options by analyzing the business loan offers from these top providers, and take an informed decision.

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