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Best Banks for Business Loans in India 2023

In the past, business owners had restricted access to funding options. They had to rely on their resources. It constrained their ability to grow. Thankfully, several new kinds of business loans are already available from the best bank for business loans in India.

Here is a list of the best bank for a business loan in India. These help you to get funds if you are also at a fork in the road and searching for money for your entrepreneurial aspirations. Let’s have a look at the best bank for business loans in India.

List of the Best Banks for Business Loans in India

There are various banks providing loans to businesses in India. Here, we have listed some of the best banks for business loans in India

1. ICICI Bank

The ICICI Bank guarantees quick and simple processing of loans. It offers best-in-class operations, making it one of the best banks for business loans in India. It is a viable option on the market due to the quick processing, minimal paperwork, and competitive interest rates.

ICICI Bank provides enterprise loans in India up to Rs.10 crores. The interest rates are as low as 12.9 percent per year and the loan-term investment plans of 60 months. The service fee charged is limited to 2% plus any applicable GST which marks it at the top of the list of the best banks for business loans in India

2. SBI

SBI Business Loan is available for commercial purposes with a collateral mortgage. This name is in the list of best banks for business loans in India. The loan amount is beneficial for several things, including working capital, business growth, and asset purchases.

SBI offers business loans with low-interest rates ranging from Rs.10 lacks to Rs.20 crores. The SBI Asset-Backed Commercial Loan processing fee is 1% of the sanctioned limit amount.

3. HDFC Bank

Business organizations can benefit greatly from HDFC Business Loans. Entrepreneurs have a fantastic opportunity to fund their needs with the help of collateral-free loans from HDFC. It comes with quick support, minimal documentary evidence, and quick disbursals.

The interest rate on these loans starts at a competitive 12.75% annually. Up to Rs., 50 lakh in unsecured business loans is available from HDFC Bank, with a 48-month maximum repayment term. The HDFC Business Loan processing fee can be up to 2.50% of the loan balance because of its minimal processing fees. It is on the list of best banks for a business loan in India.

4. IDFC First Bank

IDFC Bank with Capital First merged to make IDFC First Bank.  The two banking partners together make it the best bank for business loans in India This bank provides a variety of unprotected business loans for different operational requirements.

For an IDFC Bank business loan, no security or collateral is required which is why it is the best bank for business loans in India. Regular clients get a Top-Up facility. It allows them to borrow additional funds from the bank on top of their current loan balance.

Unsecured business loans up to Rs.75 lacks are available from IDFC Bank.  The lending rates start at 11.69% and loan terms range from 12 to 60 months. The IDFC Business Loan processing fee can be up to 2.50% of the amount borrowed.

5. Kotak Mahindra Bank

A variety of business loans without collateral are available from Kotak Mahindra Bank. It is quick, simple, and hassle-free to apply. Within 72 hours, Kotak Mahindra Bank approves business loans. Its simple and fast process makes it one of the best banks for business loans in India.

Additionally, a loan of up to Rs.3 crore is available through the Fund against Credit Card Receivables (FCCR) program. Unsecured business loans from Kotak Mahindra Bank are available for up to Rs.75 lakh. 

The lending rates vary from 11.69% to 15%, with terms as long as 48 months. The processing fee is up to 2% of the amount borrowed plus any applicable GST. All these features make it the best bank for business loans in India.

Conclusion

When you search for the best bank for business loans in India for growing entrepreneurs, keep in mind a few things.  The capital borrowed from the best banks for business loans in India is different from the investors. You have to repay that loan amount irrespective of your business conditions whether you are profitable or not.

Best Banks for Business Loans in India – FAQs

What are the eligibility criteria for getting the best bank business loan?

Ans. Several criteria are there to meet to be eligible for the best bank business loan.

  • The score for business credit.
  • The total yearly revenue of your company.
  •  Updated business plan with projected financial statements.
  •  To secure the loan, additional financial collateral is compulsory.

What minimum credit score do you need to get the best bank business loan?

Ans. For the best bank business loan, a credit score of at least 650 can be perfect. For a business loan without collateral: credit rating over 700. A credit score between 650 and 700 for a safe and secure business loan.

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