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
|Bank||Business Loan Interest Rates||Processing Fee|
|SBI Business Loan||11.20%||From 2% to 3%|
|HDFC Bank Business Loan||15.50%||Starting from 0.99%, Max 2.50%|
|ICICI Bank Business Loan||15.50%||Starting from 0.99%, Up to 2%|
|RBL Bank||20.00%||3% of loan amount|
|Tata Capital||13.50%||From 1.50% to 2.50%|
|Lendingkart||18.00%||1% of loan amount|
|Bajaj Finserv||14.00%||Upto 2% of loan amount|
|IDFC Bank||16.00%||Up to 2%|
|IIFL||13.00%||Up to 2%|
|Bank of Maharashtra||14.50%||1% of loan amount, Min Rs. 1,000|
|Kotak Bank||16.00%||Upto 2%|
|Yes Bank||16.25%||Up to 2%|
|Allahabad Bank||11.10%||Rs. 229 – per lac, Min Rs. 2,038 Max Rs. 22,928|
|PNB||12.60%||1.8% + taxes|
|OBC||11.95%||0.50% of Loan Amount|
|Indian Overseas Bank||14.90%||Rs. 204 per lakh|
|Dhan Laxmi Bank||13.15%|
|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||12.30%||0.5%, Min Rs. 500|
|Bank of Baroda||14.10%||Upto 1%|
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.
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:
- Per month’s EMI
- Processing Fee
- 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.