Compare business loan offers from bank experts
Business loans fund working capital, new equipment, stock or expansion. Some banks lend without collateral based on your turnover and cash flow. Others ask for security in return for a lower rate. Lenders judge businesses differently, so the same business can receive very different offers.
- Amount
- 10 Lacs to 2 Cr
- Tenure
- Usually 1 to 5 years
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Personal Loan at a glance
| Loan amount | 10 Lacs to 2 Cr |
|---|---|
| Tenure | Usually 1 to 5 years |
| Interest rate | Roughly 12% to 24% a year, lower if secured |
| Security | Unsecured or secured, depending on the bank and amount |
| Best for | Business owners, professionals and companies |
Rates and terms are indicative and change often. Each bank decides the final offer based on your profile.
Who can apply
- A business that has been running for at least 2 to 3 years, at many banks.
- Proof of steady turnover and profit.
- A good credit score for the business and for its owners.
- Owner age usually between 21 and 65.
- GST and Udyam registration where they apply to you.
Documents you may need
- KYC of the owners or directors.
- Business proof such as GST, Udyam or shop and establishment registration.
- ITR for the last 2 to 3 years with computation of income.
- Last 6 to 12 months of business bank statements.
- Balance sheet and profit and loss statement.
- Property or asset papers, if the loan is secured.
How to get a better deal
- Borrow for something that earns a return, such as stock, machinery or a new outlet.
- Match the tenure to how quickly the money comes back into the business.
- Ask about government-backed credit guarantee schemes for small businesses, which can reduce the collateral needed.
- Keep GST filings and bank statements clean. Banks read them closely.
Personal Loan questions
Can I get a business loan without collateral?
Many banks offer unsecured business loans, usually at higher rates and for smaller amounts. Larger amounts or lower rates often need security.
How much turnover do I need?
Each bank sets its own minimum. Your bank expert can tell you which banks fit your turnover and profit before you apply.
Can a new business apply?
It is harder. Many banks want 2 to 3 years of records, but some consider younger businesses, especially with collateral or a strong guarantor.
What is the difference between a term loan and a working capital loan?
A term loan gives you a lump sum repaid in EMIs. A working capital loan or credit line covers day-to-day needs and can be drawn and repaid as the business needs.