Business loans are an essential financial tool for entrepreneurs and businesses in India. Whether it's for starting a new venture, expanding an existing business, or meeting working capital requirements, businesses often need external funding. Banks and Non-Banking Financial Companies (NBFCs) are the primary sources for business loans in India. They offer a range of loan products with varying terms and conditions. This article provides an overview of the top banks and NBFCs offering business loans in India, along with their features, eligibility criteria, and benefits.

1. State Bank of India (SBI)

Overview
State Bank of India (SBI) is one of India’s largest and most trusted banks, offering a wide variety of business loan products for small, medium, and large enterprises. It has a comprehensive range of options for working capital needs, term loans, and expansion requirements.

Key Loan Products:

• SBI SME Loan: Tailored for small and medium enterprises, SBI offers loans with low-interest rates, flexible repayment terms, and no collateral requirements for smaller loan amounts.

• SBI Term Loan: Aimed at businesses looking for long-term funding to expand operations or purchase fixed assets.

• SBI Working Capital Loan: Provides businesses with funds to meet short-term financial needs, such as daily operations and inventories.

Features:

• Loan amounts ranging from ₹10 lakh to ₹50 crore (depending on the type of loan).

• Flexible repayment tenure ranging from 1 to 15 years.

• Competitive interest rates starting from 7.5% per annum.

• Collateral requirement for loans above a certain threshold.

Eligibility:

• The business should be in existence for at least 3 years.

• A minimum annual turnover of ₹10 lakh.

• A healthy credit score (750 or above).

2. HDFC Bank

Overview
HDFC Bank is another prominent player in India’s banking sector, offering customized business loans for small, medium, and large businesses. Known for its efficient services and quick disbursal, HDFC Bank has made business financing more accessible to entrepreneurs.

Key Loan Products:

• HDFC Bank Business Loan: Available for self-employed individuals, partnerships, and limited companies, this loan can be used for working capital, business expansion, or purchasing assets.

• HDFC Bank SME Loan: Specifically designed for small and medium-sized businesses to support their growth and working capital needs.

• HDFC Bank Overdraft Facility: A credit facility that provides businesses with short-term working capital to manage cash flow efficiently.

Features:

• Loan amounts ranging from ₹50,000 to ₹50 crore.

• Quick approval process with minimal documentation.

• Competitive interest rates starting at around 10.5% per annum.

• Flexible repayment terms of up to 4 years.

Eligibility:

• Minimum of 3 years in business with a stable turnover.

• A credit score of 650 or above.

• Age between 21 and 65 years.

3. ICICI Bank

Overview
ICICI Bank is one of the largest private-sector banks in India, offering a wide array of business loan products to meet the diverse financial needs of Indian businesses. ICICI provides loans to businesses across various sectors, including manufacturing, services, and trade.

Key Loan Products:

• ICICI Bank Business Loan: This product provides fast access to capital for businesses that need funds for growth, working capital, and equipment financing.

• ICICI Bank Working Capital Loan: Designed for businesses to meet short-term financial requirements, such as managing inventory or paying wages.

• ICICI Bank Trade Finance: For businesses involved in export or import, providing them with a credit line to finance their international trade transactions.

Features:

• Loan amounts from ₹50,000 to ₹50 crore.

• Interest rates starting from 10.75% per annum.

• Simple documentation process and fast loan approval.

• Repayment tenure can range from 1 to 5 years.

Eligibility:

• Businesses should be operational for at least 3 years.

• Satisfactory business credit history and CIBIL score of 700 or above.

• Financial stability and annual turnover in the range of ₹5 lakh to ₹50 crore.

4. Bajaj Finserv (NBFC)

Overview
Bajaj Finserv is one of India’s leading Non-Banking Financial Companies (NBFCs), providing easy access to business loans, especially for small and medium-sized enterprises (SMEs). Bajaj Finserv offers both secured and unsecured business loans with minimal paperwork and quick processing.

Key Loan Products:

• Bajaj Finserv Business Loan: Offered to meet a variety of business needs such as working capital, asset purchase, and business expansion.

• Bajaj Finserv SME Loan: For small businesses looking to expand, with flexible repayment options and no need for collateral.

• Bajaj Finserv Loan Against Property: Provides businesses with the option of borrowing against their property to fund their business operations.

Features:

• Loan amounts ranging from ₹1 lakh to ₹30 lakh.

• Quick disbursal within 24 hours.

• Interest rates starting from 13% per annum.

• Repayment tenure of up to 8 years.

Eligibility:

• Businesses must be operating for at least 3 years.

• A credit score of 750 or above is desirable.

• Minimum turnover of ₹10 lakh per year.

5. Kotak Mahindra Bank

Overview
Kotak Mahindra Bank has earned a reputation for offering flexible business loans to SMEs, providing them with the necessary funds to grow their operations. The bank provides both secured and unsecured loans with affordable interest rates.

Key Loan Products:

• Kotak Business Loan: Aimed at established businesses needing funds for working capital, asset acquisition, or business expansion.

• Kotak Working Capital Loan: Designed to meet the short-term financial requirements of businesses.

• Kotak SME Loan: Tailored for small and medium-sized businesses to help them manage day-to-day financial needs.

Features:

• Loan amounts ranging from ₹1 lakh to ₹10 crore.

• Competitive interest rates starting from 11% per annum.

• Quick processing and minimal documentation.

• Flexible repayment tenure of up to 5 years.

Eligibility:

• Business must be in operation for at least 3 years.

• Minimum annual turnover of ₹15 lakh.

• A good credit score and positive business financials.

6. Axis Bank

Overview
Axis Bank is one of the leading private sector banks in India, providing a broad range of business loan products to meet the needs of both large corporations and small businesses. It offers unsecured and secured loans with flexible terms.

Key Loan Products:

• Axis Bank Business Loan: Provides quick and easy access to working capital or long-term financing.

• Axis Bank MSME Loan: Specifically for micro, small, and medium enterprises with fast processing and lower interest rates.

• Axis Bank Overdraft Facility: Allows businesses to access funds as and when required for day-to-day operations.

Features:

• Loan amounts ranging from ₹50,000 to ₹50 crore.

• Interest rates starting from 12% per annum.

• Flexible repayment tenure of up to 7 years.

• Quick loan disbursal within 3–5 business days.

Eligibility:

• Minimum business vintage of 2 years.

• Healthy credit score of 650 or above.

• Annual turnover of at least ₹10 lakh.

Conclusion

In India, business loans are a critical source of funding for enterprises looking to scale or address financial challenges. The leading banks and NBFCs, such as SBI, HDFC Bank, ICICI Bank, Bajaj Finserv, Kotak Mahindra Bank, and Axis Bank, provide tailored loan products for businesses across various sectors. These lenders offer competitive interest rates, flexible repayment terms, and quick processing times, making them popular choices for entrepreneurs.

When choosing a lender, it’s crucial for business owners to assess their funding needs, eligibility criteria, loan terms, and interest rates to ensure they select the most suitable option for their business. With the right financial partner, businesses can secure the capital they need to grow and succeed in today’s competitive market.