Unsecured Business Loans: Eligibility, Interest Rates, Required Documents

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If you are planning to apply for a business loan and want to know the complete details for business loan can see all the regarding details in the below article. Here we are going to provide you the details about the Business Loans. A business loan is nothing but a loan taken from the banks to invest on something on which you want to set up your business. You can borrow money from the bank for your small business and can repay to them with some amount monthly with a fixed interest rate.

A loan which is particularly applied for the business purpose is Business loan. The customer has to repay this amount with interest to the taken amount with the decided interest rates. The applicants who are taking the business loans to own your small business, they also have to think about their personal credit scores. As the personal credit scores will also impact by taking these Business loan. If the applicants are using their personal credit cards to invest on their business then debt taken for business also effects on personal credits. Before applying for the business loan know the required eligibility to avail a business loan.

Eligibility Criteria to apply for the Business Loan-

Anyone can get a business loan with or without security. This only depends on the banks rules which are offering you a loan amount and along with the risk on the amount they are ready to take. Everything matters when you are applying for a business loan like you are taking a loan to start a new business or you are applying it for extending the running business. This makes differences in surety. You will get your loan amount very soon if you meet all the required eligibility criteria once the documentation is done.

There are many factors considered to be eligible for the business loan. Before sanctioning a loan, every bank will see for many required criteria. Some of the eligibility factors are as follows-

AGE LIMIT- The applicants who are going to apply for the business loan should be of minimum 21 years of age and maximum 65 years of age.

INCOME DETAILS- The applicants who are taking loans should submit their profit details of last two years, ITR etc.

TURNOVER- Annually the applicant’s minimum income should be Rs. 1,50,000/- per Annum.

CO-APPLICANTS- Some banks keep it as optional, as it is not mandatory for the business loans.

Below are the details of the different banks/NBFCs criteria. As each and every bank eligibility are different as it depends upon the age of the applicant, location and type of the burrowers applying for the loan. These below details help you in finding yourself for which bank you are eligible to apply your business loan.

Eligibility Criteria of AXIS BANK for taking Business Loan-

Required documents-

1.    ID Proof

2.    Address Proof

3.    Income proof

4.    Lease documents if applicable.

Eligibility Criteria-

•    Applicant’s age should be minimum 24 years of age and maximum 65 years.

•    The candidate who is applying should work in the reputed company or a government company.

•    If they are self-employed should fill the income tax return

Eligibility Criteria Required by the CAPITAL FIRST Bank for Business Loan-

Required Documents-

•    Application form which should be filled with all the correct details.

•    ID Proofs which should be valid.

•    Address proofs.

•    You have to submit the financial documents, which includes Profit and Loss documents, bank statements of last 6 months, income tax return, and proof of business. •    Current, historical and projected turnovers on the company letterheads.

Required Eligibility Criteria-

•    The applicant should have minimum 24 years of age and the maximum age of the applicant should not be more than 65 years of age.

•    Should make profit in their business for last one year.

•    The applicants who are running their current business should be atleast 48 months old.

CITI BANKS requirements to apply for a Loan- Required documents-

•    Application form which should be filled completely for Personal business loan.

•    Two photographs of passport sized.

•    Identity proof which can include Voter ID/ Passport/ driving License/Aadhar Card/ PAN Card.

•    Age Proof

•    Financial Documents.

Citi banks required eligibilities for business loan-

•    The applicants who are self-employed should have minimum 21 years of age and the one who are salaried employees should be minimum 26 years of age.

•    The maximum age of the applicant should be 60 years if they are salaried employees and if they are self-employed their maximum age should be 65 years.

•    The monthly income of the employee should be minimum Rs.30,000/-

ICICI Bank Business loan Eligibility Criteria- Required documents-

•    Business loan filled application form.

•    Passport sized photographs two.

•    Identity Proofs which should be valid.

•    Income tax return/ profit and loss documents/ last two years balance sheets/ bank statements and business proofs to know your financial documents.

•    Current, historical and projected turnovers on the company letterheads

Needed eligibility criteria-

•    The Minimum age of the applicant must be 25 years of age and maximum age of the applicant should be 65 years.

•    The one who are applying for the business loan should make profit for the last 1 year.

Business Loan Eligibility requirements for INDUSLAND Bank-

Needed Documents –

•    ID Proof which should be a valid id proof.

•    Address proof.

•    Salary slip and bank statements of last three months, salaried employee should submit their form 16. Profit and loss balance sheet which should be of last two years. This is for the self-employed applicants.

•    Declaration of the sole proprietorship. Copy of the partnership deed certificate/ MOA, AOA and Board resolution certificate copies. Self-employed applicants should submit their Income derived form a partnership firm.

Eligibility Requirements-

•    The minimum age of the applicant should be 25 years and maximum age should be 65 years.

•    The running business should make profit from last two years.

Business Loan Application Eligibility Requirements Form TATA Capital-

Needed Documents-

•    Two Photos which should be in passport sized

•    Identity Proof

•    Address Proof

•    Bank statements and Salary slips of last three months. Salaried employee should submit form 16. P and L balance sheets of last two years.

Eligibility Criteria-

•    Applicant should be minimum 25years of age if salaried employee and maximum age limit should be 65 years.

•    If applicant is having any business then it should be profitable for last three years.

•    The turnover of the business should be increasing all the time and should also have the turnover of the Rs.4 Million.

HDFC Banks Business Loans Required Eligibility-

•    Minimum turnover of Rs.4 Million in Business.

•    In the current fir there should be three years of business.

•    Their business should make profit for last two years.

•    The annual income of the applicant should be minimum Rs.1,50,000 per annum.

•    The age limit of the applicant should be minimum 21 years and maximum 65 years.

How to apply for Small Business loans-

If you want to apply for the small business loans you can follow the below steps here.

The customers who are willing to expand their business or invest on their business then they can apply for the business loans. The one who decided to take a loan can take it from the private banks and Non-Banking Financial Corporation. There are also many reputed financial lenders who provide loans to expand the business. These lenders will provide you loan up to Rs.75 Lakhs which can tenure till 84 month or depending upon the deal.

Documents required for Business Loan-

Any applicant who is going to avail a business loan must have to submit the following documents. These documents are the requirements for the lenders who are providing you the amount of loan.

•    Signed Application Form.

The applicants should submit the complete filled in application form provided to them by the lenders along with one passport sized photograph.

•    Identity Proof

To submit this identity proof, you can submit any one of the following like PAN Card/ Passport/ Voter Id card/ Driving License/ Aadhar card.

•    Residential Address Proof.

For address proof you can submit any of the following as Ration card/ Telephone bill/ Electricity Bill/ Passport/ Sales tax certificate/ Lease agreement/ Trade License

•    Income Proof-

Last 3 years ITR (income tax returns) (self and business), profit and loss account, balance sheets certified/audited by a CA. Last 12 months bank account statement (self and business)

•    Certificate and Proof of Business Existence.

Along with the above documents these are also the mandatory certificates to be submitted such as true copy of the certified articles of Association and memorandum, sole proprietorship declaration. Audited financials of last three years.

Here is a list of the common documents required by any of the business loan lenders.

•    Age proof- Voter Id/ PAN Card. Passport any one can be submitted for the proof of age.

Following are the financial documents to be submitted by the different employees as follows-

1.    Self Employed applicants who are non-professionals- Profit and loss balance sheets for the last two years need to be given which should be audited by the CA (chartered Accountant). Bank statements and It return copies of last two years.

2.    Professional- Self Employed individuals- Bank statements of the last six months and It return copies of last two years. Balance sheets audited by the CA of profit and Loss.

3.     Private Ltd. Co. and partnership self-Employee- IT returns copies of last two years and Bank statements of last six month. P and L balance sheets audited by the CA.

Compare interest rates:

Before taking loans from any banks it is good to know the interest rates from every individual bank. It is not possible to visit each bank and know the difference in interest rates as it may be wasting your time and energy. Hence it best to know the differences in official sites and here we have also provided you the interested rates for business loans providing by the different banks.

•    SBI Business Loan 11.20% From 2% to 3%

•    HDFC Bank Business Loan 15.65% Starting from 0.99%, Max 2.50%

•    ICICI Bank Business Loan 16.49% Starting from 0.99%, Up to 2%

•    Citibank 16.00% Up to 2%

•    RBL Bank 16.25% 1.80-2.20% of loan amount

•    Tata Capital 18.00% From 1.50% to 2.50%

•    Lendingkart 18.00% 2% of loan amount

•    Bajaj Finserv 18.00% up to 2% of loan amount

•    IDFC First Bank 22.00% 2.00%

•    IIFL 13.00% up to 2%

•    Bank of Maharashtra 14.50%, 1% of loan amount, Min Rs. 1,000

•    IndusInd Bank 14.00% - 2.50%

•    Kotak Bank 16.00% up to 2%

•    Fullerton India 16.00% - 2%

•    IDBI Bank 13.00% - 1%

•    Neogrowth 19.50% - 2.5% of loan amount

•    Allahabad Bank 11.15% Rs. 229 - per lac, Min Rs. 2,038 Max Rs. 22,928

•    Yes Bank 16.25% Up to 2%

•    PNB 12.65% - 1.8% + taxes

•    OBC 11.40% - 0.50% of Loan Amount

•    Indian Overseas Bank 14.90% Rs. 204/- per lakh

•    Dhana Laxmi Bank 12.90%

•    DCB Bank 10.70% 2%

•    Andhra Bank 15.75% Case to Case

•    United Bank of India 13.00% 1.15%

•    Corporation Bank 13.55% 1.5%, Min Rs. 500

•    Syndicate Bank 12.65% 0.5%, Min Rs. 500

•    Bank of Baroda 14.10% Up to 1%

Details about the interest rates of the different banks along with the amount in the particular tenure.

•    State Bank of India

Interest Rate 11.20% – 16.30%

Lowest EMI Rs. 2,594 per lakh

Tenure 1 Year to 4 Years

Loan Amount Min Rs. 500,000 and Max Rs. 1,000,000,000

Part Prepayment Charges Nil Prepayment Charges after 6 EMI's

•    HDFC

Housing Development Financial Corporation At interest rate of 15.65% per annum,

the EMI on HDFC Bank business loan would range from ? 9,057 to ? 2,816 for loan tenure ranging from 12 to 48 months.

•    ICICI Bank

Loan Amount INR 40 Lakhs

Tenure Up to 60 months

Interest Rate Starts from 12.15%

Processing fee 2% of the loan amount

Prepayment charges Up to 5% of the outstanding principle

•    Citibank

Business Loan Interest Rates India Interest Rate 16.00%

Processing Fee Upto 2%

Tenure From 12 months to 60 months

Lowest EMI per lakh ? 2,432 Loan Amount Min ? 1 Lakh and Max ? 25 Lakh

•    RBL Bank

Business Loan Interest Rates India

Interest Rate 16.25%

Processing Fee 1.80-2.20% of loan amount

Tenure From 12 months to 36 months

Lowest EMI per lakh ? 3,528

Loan Amount Min ? 1 Lakh and Max ? 10 Lakh

•    Bajaj Finserv

Interest Rate 18.00%

Processing Fee From 1.50% to 2.50%

Tenure From 12 months to 48 months

Lowest EMI per lakh ? 2,938

Loan Amount Min ? 5 Lakh and Max ? 50 Lakh

Part Prepayment, Charges Not allowed

Early Foreclosure, Charges Allowed after 6 EMI's, 4.5% of outstanding balance

Bajaj finserv

Interest Rate 18.00%

Processing Fee Upto 2% of loan amount

Tenure From 12 months to 48 months

Lowest EMI per lakh ? 2,938

Loan Amount Min ? 5 Lakh and Max ? 30 Lakh

Part Prepayment, Charges Allowed after 1 EMI's, 2%

Early Foreclosure, Charges Allowed after 1 EMI's, 4%

•    Idfc first bank

Interest Rate 22.00%

Processing Fee 2.00%

Tenure From 6 months to 36 months

Lowest EMI per lakh ? 3,819

Loan Amount Min ? 3 Lakh and Max ? 75 Lakh

Part Prepayment, Charges Not allowed

Early Foreclosure, Charges Allowed after 6 EMI's, 4 - 5%

•    Kotak Bank

Business Loan Interest Rates India

Interest Rate 16.00%

Processing Fee Up to 2%

Tenure From 24 months to 60 months

Lowest EMI per lakh ? 2,432

Loan Amount Min ? 3 Lakh and Max ? 75 Lakh

•    IDBI Bank

Business Loan Interest Rates India

Interest Rate 13.00%

Processing Fee 1%

Tenure From 12 months to 60 months

Lowest EMI per lakh ? 2,275

Loan Amount Min ? 50,000 and Max ? 5 Lakh

•    OBC BANK

Interest Rate 11.40%

Processing Fee 0.50% of Loan Amount

Tenure From 12 months to 84 months

Lowest EMI per lakh ? 1,733

Loan Amount Max ? 2 Cr

Part Prepayment, Charges Nil Prepayment Charges

Early Foreclosure, Charges Nil Prepayment Charges

•     Corporation Bank

Business Loan Interest Rates India

Interest Rate 13.55%

Processing Fee 1.5%, Min Rs. 500

Tenure From 12 months to 84 months

Lowest EMI per lakh ? 1,849

Loan Amount Min ? 2 Lakh and Max ? 5 Cr

•    DCB Bank

Business Loan Interest Rates India

Interest Rate 10.70%

Processing Fee 2%

Tenure From 12 months to 180 months

Lowest EMI per lakh ? 1,118

Loan Amount

•    Syndicate Bank

Business Loan Interest Rates India

Interest Rate 12.65%

Processing Fee 0.5%, Min Rs. 500

Tenure From 12 months to 60 months

Lowest EMI per lakh ? 2,257

Loan Amount Min ? 50,000 and Max ? 5 Lakh

•    Andhra Bank

Business Loan Interest Rates India Andhra Bank offers Business Loan starting at interest rate of 15.75%. The rates vary by loan amount, occupation and type of loan availed. Check Best Offers

Interest Rate 15.75%

Processing Fee Case to Case

Tenure From 12 months to 60 months

Lowest EMI per lakh ? 2,419

Loan Amount Min ? 50,000 and Max ? 5 Lakh

Part Prepayment, Charges Nil prepayment charges

Early Foreclosure, Charges Nil prepayment charges

•    Bank of Baroda

Business Loan Interest Rates India

Bank of Baroda offers Business Loan starting at interest rate of 14.10%. The rates vary by loan amount, occupation and type of loan availed. Check Best Offers here

Interest Rate 14.10%

Processing Fee Upto 1%

Tenure From 12 months to 36 months

Lowest EMI per lakh ? 3,423

Loan Amount Min ? 1 Lakh and Max ? 2 Lakh

Part Prepayment, Charges Allowed after 1 EMI's,

Early Foreclosure, Charges Allowed after 1 EMI's, Nil prepayment charges

•    Indian Overseas Bank

Business Loan Interest Rates India

Indian Overseas Bank offers Business Loan starting at interest rate of 14.90%. The rates vary by loan amount, occupation and type of loan availed. Check Best Offers

Interest Rate 14.90%

Processing Fee Rs. 204 per lakh

Tenure From 12 months to 60 months

Lowest EMI per lakh ? 2,374

Loan Amount Min ? 50,000 and Max ? 10 Lakh

Part Prepayment, Charges Allowed after 1 EMI's,

Early Foreclosure, Charges Allowed after 1 EMI's, Nil prepayment charges

•    Allahabad Bank

This bank offers Business Loan starting at interest rate of 11.15%. The rates vary by loan amount, occupation and type of loan availed. Check Best Offers

Interest Rate 11.15%

Processing Fee Rs. 229 - per lac, Min Rs. 2,038 Max Rs. 22,928

Tenure From 12 months to 84 months

Lowest EMI per lakh ? 1,720

Loan Amount Min ? 1 Lakh and Max ? 5 Cr

Part Prepayment, Charges 2.25%

Early Foreclosure, Charges 2.25%

•    Neogrowth

This bank offers Business Loan starting at interest rate of 19.50%. The rates vary by loan amount, occupation and type of loan availed. Neogrowth offers business loan to retailers against POS machine. Check Best Offers

Interest Rate 19.50%

Processing Fee 2.5% of loan amount

Tenure From 9 months to 24 months

Lowest EMI per lakh ? 5,065

Loan Amount Min ? 1 Lakh and Max ? 8 Lakh

Part Prepayment, Charges Not allowed

Early Foreclosure, Charges Allowed after 1 EMI's, Nil charges

•    Dhanlakshmi bank

Total Interest Amount, Total Repayment Amount

Loan Amount Loan Tenure Interest Rate

Rs. 10,00,000 1 year 12.13% p.a – 14.60% p.a

Rs. 10,00,000 2 years 12.13% p.a – 14.60% p.a

Rs. 10,00,000 3 years 12.13% p.a – 14.60% p.a

Rs. 10,00,000 4 years 12.13% p.a – 14.60% p.a

•    Lendingkart

Business Loan Interest Rates India

Interest Rate 18.00%

Tenure From 1 months to 36 months

Lowest EMI per lakh ? 3,615

Loan Amount Min ? 50,000 and Max ? 1 Cr

Part Prepayment, Charges Not allowed

•    Tata Capital

Tata Capital offers Business Loan starting at interest rate of 18.00%. The rates vary by loan amount, occupation and type of loan availed. Check Best Offers

Interest Rate 18.00%

Processing Fee From 1.50% to 2.50%

Tenure From 12 months to 48 months

Lowest EMI per lakh ? 2,938

Loan Amount Min ? 5 Lakh and Max ? 50 Lakh

Part Prepayment, Charges Not allowed

Early Foreclosure, Charges Allowed after 6 EMI's, 4.5% of outstanding balance

These interest rates will not make much difference in your loan amount but if you are taking a loan these small things will matters and makes a big difference in amount savings.

There are Oriental Bank of Commerce (OBC) and United Bank of India which has merged in to punjab national bank (PNB) andhra bank, syndicate bank merged into canara bank, Union Bank of India has merged with Andhra Bank and Corporation Bank, Indian Bank will be merged with Allahabad Bank. These banks interest rates will be changed in coming time. We will keep updated you soon.

Hope these details help you in planning accordingly in taking a business loan. We request you to keep on checking our official website to know more and updated detail.

Last Updated on : 23/Apr/2020

Know More How To Apply ??

Know More About

Business Loans

You're eligible for a Business Loans if you:


Are legally adult enough to handle it


Have still got it


Get a regular pay check


Make more than a basic buck

Your eligibility depends on:


Earn more than minimum income required


Maximum allowed Business Loans is Rs. 10K to Rs. 45 lakhs


EMIs of other loans loweryour eligibility

Boost your eligibility by:


Pay off your credit card bills


Choose longer tenure loan up to 5 years

Nothing gets done without that paperwork (which we'll happily carry over to the bank for you, no sweat). Here's what you'll need:

  • 1. Photo ID and age proof
  • 2. Signed application form with photograph
  • 3. Residence proof
  • 4. Last 6 months bank statement
  • 5. Documentation for salaried applicants:
    • Last 3 months salary - slips
    • Form 16 or Income Tax Returns
  • 6. Documentation for self-employed applicants:
    • Last 3 years Income Tax Returns with computation of Income
    • Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

Business Loans Interest Rates

Updated on 25 Nov 2017

Business Loans Details
Interest Rate (Monthly reducing balance) 15.65% - 21.2%
Processing Fees Varies with bank
Loan Tenure 1 year to 5 years
Pre-closure Charges Varies with bank
Guarantor Requirement Varies with bank

Business Loans EMI Calculator

Loan Amount

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50L
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150L
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2Cr

Interest Rate

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5
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12.5
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17.5

Loan Tenure

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10
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20
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25
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0
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120
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240
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Your Monthly Loan EMI


₹24,959