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F-14/15, Orbit Mall, Civil Lines, Jaipur-302006 support@thetaxheaven.comRunning a successful business requires not just passion and ideas, but also timely financial support. Whether you’re a startup founder or managing an established enterprise, access to affordable business loans can help you expand operations, purchase equipment, manage working capital, or even survive tough market conditions.
In India, several banks and non-banking financial companies (NBFCs) offer business loans at competitive interest rates. Choosing the right loan provider is crucial to keep repayment manageable and ensure that your business grows without unnecessary financial stress.
This article highlights the top business loan providers in India with low interest rates in 2025, covering their features, eligibility, interest rates, and benefits.
Working Capital Support – Ensures smooth day-to-day operations.
Expansion Plans – Helps set up new branches or acquire assets.
Technology & Equipment Purchase – Upgrading infrastructure or machinery.
Marketing & Branding – Fund campaigns to reach a wider audience.
Emergency Funding – Manage unexpected market downturns.
Interest Rate – Lower rates reduce EMI burden.
Processing Fees – Some lenders charge 1–3% of the loan amount.
Repayment Tenure – Longer tenure lowers EMI but increases interest outgo.
Loan Amount – Choose based on business needs and eligibility.
Collateral Requirement – Many providers offer collateral-free loans.
Credit Score – A strong credit profile ensures better rates.
Interest Rate: Starting from 8.40% p.a.
Loan Amount: Up to ₹20 crore depending on business profile.
Tenure: Up to 7 years.
Features:
Offers SBI SME Smart Score Loan (collateral-free).
Wide branch network for easy access.
Best For: SMEs and MSMEs looking for reliable funding.
Interest Rate: Starting from 10.00% p.a.
Loan Amount: Up to ₹50 lakh (unsecured).
Tenure: 12 to 48 months.
Features:
Minimal paperwork and fast approvals.
Collateral-free loans.
Best For: Small businesses and professionals.
Interest Rate: Starting from 10.50% p.a.
Loan Amount: Up to ₹2 crore.
Tenure: Up to 7 years.
Features:
Offers business overdraft facilities.
Flexible repayment options.
Best For: Businesses needing both loans and overdraft support.
Interest Rate: Starting from 11% p.a.
Loan Amount: Up to ₹50 lakh (unsecured).
Tenure: 12 to 60 months.
Features:
Quick processing and digital application.
Loans for traders, manufacturers, and service providers.
Best For: Small businesses seeking quick disbursal.
Interest Rate: Starting from 11.50% p.a.
Loan Amount: Up to ₹75 lakh.
Tenure: 12 to 60 months.
Features:
Collateral-free loans for SMEs.
Pre-approved offers for existing customers.
Best For: SMEs with established banking relationships.
Interest Rate: Starting from 9.75% p.a.
Loan Amount: Up to ₹50 lakh.
Tenure: Up to 96 months.
Features:
Fast disbursal within 48 hours.
Flexible repayment and EMI holiday options.
Best For: Businesses looking for quick and flexible financing.
Interest Rate: Starting from 10.75% p.a.
Loan Amount: ₹5 lakh to ₹75 lakh.
Tenure: 12 to 60 months.
Features:
Collateral-free loans.
Step-up and step-down EMI options.
Best For: Growing businesses needing flexible repayment structures.
Interest Rate: Starting from 11.99% p.a.
Loan Amount: ₹50,000 to ₹50 lakh.
Tenure: Up to 60 months.
Features:
Loans available for both small and medium businesses.
Online application and instant approval.
Best For: Startups and SMEs needing quick approval.
Interest Rate: Starting from 10.75% p.a.
Loan Amount: ₹5 lakh to ₹50 lakh.
Tenure: Up to 5 years.
Features:
Minimal documentation.
Flexible tenure options.
Best For: Retail businesses and professionals.
Interest Rate: Starting from 10.49% p.a.
Loan Amount: Up to ₹1 crore.
Tenure: Up to 60 months.
Features:
Online loan tracking and transparent process.
Prepayment allowed after 6 months.
Best For: Businesses seeking larger unsecured loans.
| Lender | Interest Rate (p.a.) | Loan Amount | Tenure | Collateral-Free |
|---|---|---|---|---|
| SBI | 8.40% onwards | Up to ₹20 crore | Up to 7 years | Yes (specific) |
| HDFC Bank | 10.00% onwards | Up to ₹50 lakh | 1–4 years | Yes |
| ICICI Bank | 10.50% onwards | Up to ₹2 crore | Up to 7 years | Partially |
| Axis Bank | 11% onwards | Up to ₹50 lakh | 1–5 years | Yes |
| Kotak Mahindra | 11.50% onwards | Up to ₹75 lakh | 1–5 years | Yes |
| Bajaj Finserv | 9.75% onwards | Up to ₹50 lakh | Up to 8 years | Yes |
| Tata Capital | 10.75% onwards | Up to ₹75 lakh | 1–5 years | Yes |
| Fullerton India | 11.99% onwards | Up to ₹50 lakh | 1–5 years | Yes |
| IndusInd Bank | 10.75% onwards | Up to ₹50 lakh | Up to 5 years | Yes |
| IDFC FIRST Bank | 10.49% onwards | Up to ₹1 crore | Up to 5 years | Yes |
Maintain a Good Credit Score – A score of 700+ improves chances of approval.
Prepare Strong Financials – Lenders prefer businesses with stable revenue.
Compare Offers – Different lenders have different criteria; always compare.
Apply for the Right Loan Type – Choose working capital loans, term loans, or overdraft facilities based on need.
Negotiate – Existing customers with good repayment history can negotiate better rates.
Q1. Which bank provides the lowest interest rate for business loans in India?
SBI offers some of the lowest business loan interest rates starting from 8.40% p.a., especially for MSMEs.
Q2. Are business loans in India collateral-free?
Yes, many banks like HDFC, Axis, and Kotak Mahindra, as well as NBFCs like Bajaj Finserv, offer collateral-free business loans.
Q3. What is the maximum loan amount available for small businesses?
Most banks and NBFCs offer loans ranging from ₹50 lakh to ₹2 crore. SBI and ICICI can provide even higher amounts.
Q4. What is the typical tenure of business loans?
Business loans generally range from 12 months to 7 years, depending on the lender.
Q5. Do business loans affect personal credit scores?
Yes, if the loan is unsecured or linked to your personal guarantee, repayment behavior impacts your credit score.
Q6. Can startups apply for business loans?
Yes, but approval depends on business model, financial projections, and personal credit score. Some lenders may require collateral.
Q7. What documents are required for a business loan in India?
Common documents include PAN, Aadhaar, GST returns, bank statements, ITRs, proof of business existence, and financial statements.
Q8. Are NBFC loans more expensive than bank loans?
NBFCs often charge slightly higher rates, but they offer quicker approvals and flexible repayment options.
Q9. Can business loan interest be claimed as a tax deduction?
Yes, under the Income Tax Act, the interest paid on business loans can be claimed as a business expense.
Q10. How fast can I get a business loan approved?
NBFCs like Bajaj Finserv and Tata Capital disburse within 48–72 hours, while banks may take 5–10 working days.
Access to affordable funding is the backbone of any successful business. With multiple banks and NBFCs offering business loans at competitive interest rates in India in 2025, entrepreneurs and SMEs have more choices than ever.
If you want low interest and reliability, SBI and ICICI Bank are excellent choices.
For quick approvals and flexibility, Bajaj Finserv and Tata Capital stand out.
For collateral-free loans, private banks like HDFC, Axis, and Kotak Mahindra are preferred.
Before applying, always compare lenders, check eligibility, and calculate EMIs to ensure the loan supports growth without becoming a financial burden.
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