Many people, particularly those who have started their businesses, need additional funds to pay salaries, grow the company and start offices/centres at new locations, initiate a new project or purchase a new asset. Only the best banks for businesses step in as saviours in such situations, offering loans to help companies/businesses raise funds.
A loan is a financial product that causes everyone to go through a quick mathematical analysis before picking which bank to borrow from. Entrepreneurs/business promoters take Business loans in India after considering various factors. A business loan can benefit a business owner for various reasons, both stated above and mentioned below.
Here are some of the banks best for business banking:
ICICI Bank (Commercial loan)
ICICI Bank is best for business banking because of its best-in-class operations and quick and easy loan processing. It is a potential market choice due to its speedy processing, minimal documentation, and competitive interest rates. ICICI Bank provides business loans in India ranging from Rs 1 lakh to Rs 10 Crore, with interest rates starting at 12.9% per annum and a maximum loan duration of up to 60 months. The processing fee is limited to a maximum of 2% plus applicable GST. User can also apply for a business loan through their mobile app for business, ICICI Instabiz app.
Eligibility:
· Businesses run in partnerships, sole proprietors, private limited companies, micro and small enterprises, and public limited corporations can all apply for these business loans.
HDFC Bank (Company’s Growth Loans)
HDFC provides collateral-free loans with quick processing, limited documentation, and prompt disbursal. Businesses get quick funds to address their needs at a competitive interest rate starting at 12.75% annually. HDFC Bank provides unsecured Business Loans amounting to Rs 50 lakh with tenures ranging up to 48 months. The HDFC Business Loan processing charge is around 2.50% of the loan amount.
Eligibility:
· A minimum business turnover of Rs 40 lakh is required.
· The company must have demonstrated profit-making ability in the previous two years of operation.
· According to ITR, the business’s minimum yearly earnings should be Rs 1.5 lakh.
· Individuals running the business must have at least five years of experience, of which three years must be in current business operations.
· The bank charges a minimum interest rate of 16% on business loans and a maximum interest rate of 21.35%.
IDFC (Commercial Loans)
This bank provides a variety of unsecured Business Loans to meet a variety of business operational requirements. A Business Loan from IDFC Bank does not require collateral or security. Existing clients can also use the Top-Up facility to borrow more money from the bank than their existing loan amount. IDFC Bank provides unsecured Business Loans of up to Rs 75 lakh with interest rates starting at 11.69% and loan terms ranging from 12 to 60 months. The IDFC Business Loan processing fee is up to 2.50% of the loan amount.
Eligibility:
· BIL is available to businesses, as well as professionals and non-professionals.
· To be eligible for an IDFC Bank BIL loan, the company must have existed for at least three years.
Kotak Mahindra Bank (Commercial Loan)
The application process is quick, simple, and hassle-free. Kotak Mahindra Bank approves Business Loans within 72 hours. It also provides Funds against Credit Card Receivables (FCCR) with loan amounts of up to Rs 3 Crore. Kotak Mahindra Bank offers unsecured Business Loans of up to Rs 75 lakh with interest rates ranging from 11.69% to 15% and repayment terms ranging from 12 to 48 months. The processing cost for a Kotak Mahindra Business Loan is 2% of the loan amount plus applicable GST.
Eligibility:
· The operational years for a company should be at least three years.
· A minimum business turnover of Rs 40 lakh is required.
· The applicant must show proof of business profitability for at least one year.
· Manufacturing, commerce, and service businesses can apply for business loans.
· This loan is available to sole proprietors, partnership firms, private companies, LLPs, and trusts.
· The applicant should be between 25 and 65 years old.
Conclusion
Individuals requiring funds to develop their business or needing a loan for their new startup, or purchasing equipment can benefit from a bank loan. Getting a Bank Loan in India has become quite simple in recent years. Now, with this list of the best banks for businesses, taking the next step may be easier and less complicated.
