Business Loan
Business Loan
HBCL is reliable to back your business with funds whenever required. Appeal for instant business loans at a low interest rate for goods, services, or trading. Young start-ups, small businesses already operating, and female entrepreneurs can all take advantage of special programs. Using an online calculator, determine your eligibility for a business loan and the associated interest rate.
Details for Business Loans
| Interest Rate | 10%-22% |
| Loan amount | Up to. Rs 500 crores |
| Repayment tenure | Up to 20 years |
| Processing fees | Up to 3.5% of the loan amount |
| Minimum business register period | 3 years |
| Payment charges | Up to 6% |
| Age required | 21 to 65 years |
Top Banks and NBFC Interest rates List
| Lender’s name | Rate of Interest (per annum) | Processing fees | Maximum Loan amount |
|---|---|---|---|
| SBI | Depends on the loan amount and size of the company. | 0%-1% | Rs. 500 crores |
| HDFC bank | 9% - 18.50% | 0.99%-2.50% | Rs. 50 Lakhs |
| Axis Bank | 9% - 18.50% | Up to 2% of the loan amount | Rs. 50 Lakhs |
| Kotak Mahindra bank | Competitive interest rates | Up to 2% | Rs. 75 Lakhs |
| ICICI bank | 10%-11.0% | Up to 2%+ taxes | Rs. 2 crores |
| Bank of baroda | As per the policy of bank | As per the policy of bank | Rs. 200 crores |
| IDFC first bank | Competitive interest rate | Up to 3.5% of the loan amount | Rs. 7 crores |
Features of business loans
The key characteristics of a business loan are as follows:
- Goal: To meet the financial needs of the business, such as those for the acquisition of new equipment, the replacement of old equipment, the construction of infrastructure, the expansion of the company, etc. necessary to move the business to a higher level etc. Additionally, working capital financing is provided to cover the daily operating expenses of the company.
- Loan Amount: The maximum loan amount is determined by the project for which the funds are needed. The evaluation is based on the business's predicted financial statements for the years up to which the repayment is established, the promoters' backgrounds, the anticipated cash flow from the operation, and other elements. A team of qualified individuals from the bank's project finance department (PFD) will conduct the project appraisal for projects where the needed loan amount exceeds 2 crores. The quantity will be determined based on PFD, liquidity ratio, DSCR, fixed asset ratio, and numerous other parameters.
- Interest:The rate of interest varies from lender to lender and is based on factors such as the amount of the loan, the project for which funding is requested, the activity line, the industry, and the customer's profile.
- Security:The security is based on the loan amount and the industry of the firm. Typically, no collateral security is required for loans to the MSME sector up to Rs. 2 Crores. The Credit Guarantee Scheme will provide coverage for the loan, If the financing is for working capital, the stocks and receivables will often serve as the primary security, If the loan is for a capital investment, the assets produced by the bank financing may be hypothecated, Residential or commercial property will be required as collateral security, If the financing is not for agricultural and related operations, the agricultural property will not be accepted.
- Repayment:The working capital finance is a short-term loan that is given for a period of six to twelve months and is renewed after an annual review. Term loans have payback terms of three to eight years, or even up to twenty years if business space building is involved.
- Prepayment Fees:While some lenders do not charge prepayment fees, others do so in the range of 0% to 6% of the outstanding debt.
Various business loans to meet your needs
HBCL introduces you to various kinds of loans that match your requirements.
- Loan for working capital:Individuals, business owners, startups, and MSMEs use working capital loans to cover their everyday expenses as well as for various business expansion services, improving business cash flow, buying raw materials, adding to their inventory or stock, paying salaries, hiring personnel, etc. Working capital loans are typically short-term, up to Rs. 40 lakh loans with 12-month payback terms or longer depending on the needs of the firm. In comparison to long-term loans or standard business loans, the interest rate offered by banks and NBFCs is a little higher. In this sort of loan, the lender specifies a maximum loan amount that the business may obtain and that may only be used for particular business needs.
- Loan for a Term:A term loan is one that has a predetermined repayment schedule that must be followed. There are three types of term loans: short-term, intermediate-term, and long-term. These two varieties have repayment terms ranging from 12 months to 5 years. Loans with a tenure of less than one year are referred to as short-term loans, and loans with a length of five years or more are referred to as long-term loans. Up to Rs. 2 crore in collateral-free business loans are available, though they may go higher depending on the needs of the organisation. At the time of loan application, the lender determines the length of repayment for a term loan.
- Letter of Credit:In a letter of credit, a bank or other lender provides a funding guarantee to businesses that engage in international commerce. This sort of credit limit is primarily employed in the trading sector. Entrepreneurs can use letters of credit for both import and export transactions. Foreign-based businesses frequently work with unidentified suppliers, therefore they need payment assurance before finalising any purchase. A letter of credit is therefore essential for giving suppliers payment certainty.
- Overdraft Service:A bank's overdraft facility allows an account holder to take money from their account even if there is no money in it. Only the amount of the sanctioned limit that has been used is subject to interest charges, which are assessed daily. The sanctioned credit limit is determined by the account holder's history with the bank, including their relationship, credit history, cash flow, and, if applicable, payback history. The overdraft limit is adjusted annually and is flexible as long as the interest is paid on time. When it comes to bank FDs, an overdraft facility is provided against securities or collateral.
- Equipment Loan or Equipment Finance:The equipment finance or machinery loan is a financing choice made available to the borrowers so they can buy new machinery or equipment or improve their current ones. Large businesses and those in the manufacturing industry are the most common users of equipment finance. Businesses or business owners that borrow money for machinery or equipment also gain tax-wise. Each lender will provide a different interest rate, loan size, and repayment period.
- Loans under Govt. Schemes:The Government of India has initiated various loan schemes for individuals, MSMEs, women entrepreneurs, and other entities engaged in trading, services, and manufacturing sectors. The loans under government schemes are offered by various financial institutions, such as Private and Public Sector Banks, NBFCs, Regional Rural Banks (RRBs), Micro Finance Institutions (MFIs), Small Finance Banks (SFBs), etc. Some of the leading Govt. Loan schemes include Mudra Scheme under PMMY, PMEGP, CGTMSE, Standup India, Startup India, PSB Loans in 59 minutes, PMRY, etc.
Easy Loan Approval with HBCL Finance.
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Fast and Easy Loan Approval with HBCL Finance.
Apply Today
EMI Calculator For Business Loans
In order to avoid financial difficulties and to receive a suitable home loan, you must evaluate your ability to repay the loan when you decide to apply for one. In this sense, the EMI Calculator is a valuable tool for figuring out the EMI (equated monthly instalment) of a housing loan. It is an easy-to-use calculator that is available for free and can be used from any location at any time to determine your required monthly payments. To get an accurate result, the House Loan EMI Calculator needs a little information about your home loan, such as the loan amount, interest rate, and repayment period.
Loan Amount
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Rate Of Interest
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EMI Schedule
| Year | Opening Balance | Interest | Principal | Closing Balance |
|---|---|---|---|---|
| 2024 | ₹ 1,00,00,000 | ₹ 2,47,229 | ₹ 4,46,077 | ₹ 95,53,923 |
| 2025 | ₹ 95,53,923 | ₹ 12,37,590 | ₹ 29,22,251 | ₹ 66,31,672 |
| 2026 | ₹ 66,31,672 | ₹ 7,67,824 | ₹ 33,92,016 | ₹ 32,39,657 |
| 2027 | ₹ 32,39,657 | ₹ 2,26,876 | ₹ 32,39,659 | ₹ 0 |
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Your EMI
₹ 3,46,653
15 % interest
per anum
Apply Now
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₹ 24,79,518
Total Interest.png)
₹ 1,24,79,518
Principal + InterestLoan Amount -
₹ 1,00,00,000
₹ 1,00,00,000
Total Interest -
₹ 24,79,518
₹ 24,79,518
Criteria for Business Loans
- It will be necessary to have a minimum annual and business turnover in accordance with the ITR. Lenders will have different requirements in terms of size.
- Proprietorship, partnership, and Pvt. Ltd. businesses, as well as independent contractors and professionals working in manufacturing, services, or trade.
- The applicant or the business's promoters must fall within the age range of 21 to 65.
- The business or company should have generated profits for at least a year.
- A minimum three-year business vintage.
Documentation Required for Business Loans Application
The typical paperwork needed for a business loan is as follows:
- Aadhaar cards, voter identification cards, driving licences, utility bills, etc. provide as proof of the promoters' addresses.
- Promoters' photo identification documents include their PAN card, passport, voter ID card, driver's licence, etc.
- GST registration, a trade licence, a shop act registration, a drug licence, etc., are all examples of business proof.
- Income evidence is provided by an audited balance sheet and profit and loss statement along with an audit report.
- other paperwork
- Partnership In the case of a Partnership Firm, a deed.
- In the event of a company, the lender will require the articles of incorporation, memorandum of incorporation, and board resolution in the format specified by the lender.
- PAN card for a company or partnership.
- If financing for a commercial vehicle is obtained, a national and state permit is required.
What are the costs associated with business loans?
Charges associated with business loans come in many different forms, including documentation fees, check bounce fees, repayment mode swap fees, duplicate NOC fees, cancellation fees, and so on. The following three primary fee types are typical for each lender:
- Processing fees: 3.5% of the loan amount and GST, up to a maximum.
- Charges for foreclosure: 6% of the amount of the outstanding debt.
- Delay in payment penalty: 2% on the overdue amount for the overdue time in addition to the regular rate of interest.
Ways to make yourself Eligible for business loans?
- Create a business charter outlining the specifics of your long-term business goals.
- Before approaching the lender, be informed of the promoters' and the company's credit ratings.
- Choose the quantum because knowing the appropriate loan quantum is also a prerequisite.
- To learn about the many Business Loan possibilities on the market, conduct some market research.
- List the possibilities that best fit your needs, and then research the interest rates and other fees related to the loan.
- Look for a lender without complicated approval processes.
- Before applying for the business loan, be aware of the mandatory paperwork and have it on hand.
Method that evaluates eligibility for a business loan?
- The business/promoters' credit score is required. A good credit score demonstrates the company's or promoters' financial responsibility, which is important in the financing decision.
- The company's profit and loss account and balance sheet together make up the financial statements. The company's financial statements for the previous three years and the anticipated financial statements for the following year will provide a quick overview of the company's performance and revenue generating.
- The DSCR reveals the company's capacity for repayment. The DSCR should ideally range from 1 to 1.5.
What is the longest time a business loan can be repaid?
Repayment for working capital financing will be required upon demand. It typically lasts for 6 to 12 months with the option of renewal on an annual review. Term loan payback terms can range from three to twenty years, depending on the project for which funding is requested..