Interest Rates

Each bank has different criteria to approve a loan and thus the interest rate also differs. Here is the list of few major banks’ interest rates updated on 30th March, 2018.

Note:MCLR is the Marginal Cost of Funds based Lending Rate.

Business Loan Interest Rate Comparison, Best Business Loans, Apr 2018

Business Loan Rate
BankBusiness Loan Interest RatesProcessing Fee
SBI Business Loan11.20%From 2% to 3%
HDFC Bank Business Loan15.50%Starting from 0.99%, Max 2.50%
ICICI Bank Business Loan15.50%Starting from 0.99%, Up to 2%
Citibank15.99%Upto 0.5%
RBL Bank20.00%3% of loan amount
Tata Capital13.50%From 1.50% to 2.50%
Lendingkart18.00%1% of loan amount
Bajaj Finserv14.00%Upto 2% of loan amount
IDFC Bank16.00%Up to 2%
IIFL13.00%Up to 2%
Bank of Maharashtra14.50%1% of loan amount, Min Rs. 1,000
IndusInd Bank14.00%2.50%
Kotak Bank16.00%Upto 2%
Fullerton India16.00%2%
IDBI Bank13.00%1%
Yes Bank16.25%Up to 2%
Allahabad Bank11.10%Rs. 229 – per lac, Min Rs. 2,038 Max Rs. 22,928
PNB12.60%1.8% + taxes
OBC11.95%0.50% of Loan Amount
Indian Overseas Bank14.90%Rs. 204 per lakh
Dhan Laxmi Bank13.15%
DCB Bank10.70%2%
Andhra Bank15.75%Case to Case
United Bank of India13.00%1.15%
Corporation Bank13.55%1.5%, Min Rs. 500
Syndicate Bank12.30%0.5%, Min Rs. 500
Bank of Baroda14.10%Upto 1%
Types of Business Loans
Secured Loans for businesses

These loans are those which are taken against some type of personal guarantee or any valuable asset as collateral. Inventory loans, equipment loans, term loans and loan against property are secured business loans.

Unsecured Business Loans

In many situations, businessmen and self employed prefer to take unsecured business finance with no collateral requirement because of the following reasons:

  • Short turnaround time of 5 -15 days as compared to secured loans
  • No collateral or security required to get this loan
  • Reduces your dependence on friends, relatives or money lenders for borrowing for urgent or seasonal business expenses.

What is the best way to compare business loan?
Compare the below three things before applying for any business loan:

  1. Per month’s EMI
  2. Processing Fee
  3. Prepayment charges

If You want to pay the loan in the tenure, the sum of 1&2, whichever is lowest, take the loan from that Bank.
If you think you might have cash flow and can pay earlier, then also check the prepayment charges.