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💼Compare Business Loans

MSME & business loans — quick disbursal, minimal docs • Rates from 14% - 28%

Step 1: Employment Details

What is a Business Loan?

A business loan is a term loan or working capital facility extended to businesses for operational needs. It can be secured (against property/assets) or unsecured (up to ₹50 lakh). Banks assess your business turnover, profitability, and vintage before approval.

A business loan helps MSMEs and entrepreneurs fund working capital, equipment, and expansion. Available from ₹50,000 to ₹50 lakh with interest rates starting at 14% p.a. Government-backed schemes (MUDRA, CGTMSE) offer subsidized rates and collateral-free options.

Business Loan Interest Rates 2026 — Bank-wise Comparison

Compare the latest business loan interest rates across India's top banks and NBFCs. Rates updated March 2026.

Bank / NBFCInterest Rate (p.a.)Max AmountProcessing FeeTenure
HDFC Bank14.00% - 22.50%₹50 Lakh2% + GSTUp to 4 years
ICICI Bank14.50% - 21.00%₹40 Lakh2% + GSTUp to 5 years
SBI14.00% - 18.00%₹50 Lakh1.5%Up to 5 years
Bajaj Finserv17.00% - 28.00%₹30 Lakh3%Up to 4 years
Lendingkart15.00% - 27.00%₹2 Cr2-3%Up to 3 years

* Rates are indicative and subject to change. Actual rate depends on CIBIL score, income, and bank policies.

Business Loan Eligibility Criteria

💼 For Salaried Individuals

  • ✓Not applicable — business loans are for businesses and self-employed individuals only

🏢 For Self-Employed

  • ✓Business vintage: 2-3 years minimum
  • ✓Minimum annual turnover: ₹10-15 lakh
  • ✓CIBIL score: 700+ (company + promoter)
  • ✓Profitable for last 2 years
  • ✓GST registered (for higher amounts)
Check Your Eligibility Now →

Documents Required for Business Loan

  • 📄Business registration documents (incorporation certificate, GST registration)
  • 📄Bank statements (12 months)
  • 📄IT returns (3 years)
  • 📄Audited financial statements (2-3 years)
  • 📄KYC of all partners/directors
  • 📄Office/shop ownership/rental proof

Tips to Get the Best Business Loan Deal

  1. Apply for Udyam registration (free) — it unlocks priority lending, lower rates, and government subsidies
  2. CGTMSE scheme allows collateral-free loans up to ₹5 crore for MSMEs
  3. Working capital loans typically have lower rates than term loans
  4. Maintain separate business and personal bank accounts

Frequently Asked Questions — Business Loan

What is MUDRA loan and how do I apply?+
MUDRA (Micro Units Development & Refinance Agency) loans are government-backed loans for micro and small enterprises. Available in 3 categories: Shishu (up to ₹50,000), Kishore (₹50,000-₹5 lakh), and Tarun (₹5-10 lakh). Apply through any scheduled commercial bank or NBFC. No collateral required.
Can I get a business loan without collateral?+
Yes, unsecured business loans are available up to ₹50 lakh from banks and up to ₹2 crore from select NBFCs. Government CGTMSE scheme covers collateral-free loans up to ₹5 crore for MSMEs, with the government guaranteeing up to 85% of the loan amount.
What is the GST requirement for business loans?+
GST registration is mandatory for business loans above ₹10-20 lakh from most banks. For smaller amounts, especially MUDRA loans, GST registration may not be required. Banks use GST return data to assess your business health.
How do I improve my chances of business loan approval?+
Key factors: (1) Maintain a personal CIBIL score above 750, (2) Keep business accounts active with regular transactions, (3) File IT returns consistently, (4) Maintain a healthy debt-to-income ratio, (5) Register for GST and Udyam, (6) Apply for the right amount based on your turnover.

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