| BANKS/NBFCs | INTEREST RATES | LOAN TENURE | PROCESSING FEES |
| Standard Chartered Bank | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| Deutsche Bank | 16%-18% (p.a) | 1-4 Years | Upto 2% |
| HDFC Bank | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| ICICI Bank | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| Kotak Mahindra Bank | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| Axis Bank | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| RBL | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| IDFC First bank | 15%-18% (p.a) | 1-4 Years | Upto 2% |
| Yes Bank | 16%-18% (p.a) | 1-4 Years | Upto 2% |
| Aditya Birla Finance Limited | 16%-19% (p.a) | 1-4 Years | Upto 2% |
| Tata Capital | 16%-19% (p.a) | 1-4 Years | Upto 2% |
| Hero Fincorp Ltd | 16%-19% (p.a) | 1-4 Years | Upto 2% |
| Bajaj Finance ltd | 16%-19% (p.a) | 1-4 Years | Upto 2% |
| NeoGrowth | 16%-19% (p.a) | 1-4 Years | Upto 2% |
| U Gro | 16%-19% (p.a) | 1-4 Years | Upto 2% |
Business Loan in Ahmedabad: Ahmedabad stands out as one of Gujarat’s most important cities in terms of business and economy. Functioning as a key industrial centre, it serves as a vital trade hub for the nation.
The past decades have witnessed remarkable development in the infrastructure and manufacturing sectors of Gujarat, particularly Ahmedabad which has resulted in a conducive environment for economic growth. Business loans in Ahmedabad has equally contributed to the growth of the city.
This progress has sparked a surge in entrepreneurial ventures, particularly in the form of new micro, small, and medium enterprises, contributing to an enhanced global standing for the country.
Economy of Ahmedabad
Ahmedabad is a bustling metropolis, boasting a population of over 6 million. It’s an industrial powerhouse, with key sectors including textiles, chemicals, and pharmaceuticals. This indicates a thriving market for goods and services in the city that’s ripe for exploitation.
The city’s commercial prowess has become a cornerstone of its success. The conventional approach to business leadership is giving way to innovative start-up ideas, driving a growing preference for unsecured or collateral-free loans among aspiring entrepreneurs.
Ahmedabad is also famed for its delectable array of snacks like Khakhra, Dhokla, Thepla, Fafda, and Dabeli – just to mention a few. If you’re considering starting a snack business here – it’s likely to be quite profitable.
Moreover, the city offers numerous exciting opportunities in traditional crafts such as metalwork, Rogan painting or Rabari Embroidery. There are plenty of options if you’re looking to venture into these areas.
Banks and Non-Banking Finance Companies (NBFCs) specialise in providing crucial financial support to these emerging businesses.
Let us then learn about the types of business loans in Ahmedabad, the documents required for a business loan, its eligibility criteria, interest rates, and charges, and how to apply for a business loan.
Types of Business Loans in Ahmedabad
There are various types of Business Loans offered in Ahmedabad, some of which include:
| Business Loan Type | Uses |
| Unsecured Business Loans | An unsecured loan is a term loan used to finance long-term or short-term business needs and can be used for Business Expansion/Business Operations.. |
| Working Capital Loans | They are used to finance short-term business needs and can be used for cash flow management, Business Operations, and to fulfil short-term liabilities. |
| Secured Business Loans | They are usually taken against the security of collateral and used for financing long or short-term business needs. They usually have lower interest rates than an unsecured business loan due to collateral security. |
| Loans against Property | Business Loans against Property are taken against the security of commercial, industrial, or residential property and may have a higher loan amount sanctioned based on the market value of the property and the LTV ratio. |
| Equipment Loans | Equipment Loans are usually taken to upgrade machinery or to buy new equipment. |
| Bill Discounting/Invoice Discounting | Bill Discounting is usually used to finance the working capital needs of a business. |
Business Loan EMI Calculator
Purpose of Business Loans in Ahmedabad
Expanding a thriving textile business presents a pivotal opportunity. Choosing between purchasing land or leasing property becomes crucial for seizing growth. Multiple expansions may be necessary to align with the business’s robust growth projections and capitalise on the current momentum. Business Loans are pivotal at this stage.
Securing a substantial loan for a major pharmaceutical enterprise hinges on maintaining a strong credit history. Owners strategically opt for short-term loans, ensuring timely repayment, thus enhancing their creditworthiness. Consistent loan repayment is pivotal for fostering a positive credit history, facilitating larger financial endeavours.
Khakra manufacturing and similar small businesses often face working capital shortages for daily operations. Resorting to short-term loans becomes essential until their assets generate sufficient revenue to independently cover operational expenses, enabling seamless business activities.
Documents required for a Business Loan in Ahmedabad
The documents required for a Business Loan in Ahmedabad may vary based upon the type of business loan. However, the following documents are usually sought by banks and NBFCs for a small business loan in Ahmedabad:
| KYC Documents of the owner and the business: The foundation of your journey. For both you and your business, we require: | 1. Personal Identification: PAN Card, Aadhaar Card, Voter’s ID Card, Driving License, etc. 2. Address Proof: Passport, Utility Bills, Lease Agreement, Trade License, etc. 3. Business Legitimacy: GST Registration, UDYAM Registration, Business PAN Card, Licenses issued by Municipalities, Registration certificates from relevant authorities, etc.. |
| Financials: Your economic blueprint, essential for a tailored loan strategy, includes: | 1. Narratives: ITR filings for the last 2 years, complete with Income Computation. 2. Business Health Check: Audited Balance Sheets and Profit & Loss Statements for the last 3 years, certified by a CA. Bank Statements from the last 2 years, revealing your financial journey. 3. License issued by Municipalities, GST Registration Certificate, Registration certificates by appropriate authorities, etc |
| Proof of Ownership or Collateral Documents (In case of secured loans) | 1. Proof of ownership or collateral documents, including property deeds, sale agreements, possession letters, and asset valuation (if applicable). |
Eligibility Criteria for a Business Loan in Ahmedabad
To avail a Business Loan in Ahmedabad, the borrower must fulfil the following eligibility criteria:
| Particulars | Requirement |
| Citizenship | The business owner must hold an Indian citizenship. |
| Age | The borrower must be at least 21 years old, and the maximum age must not be more than 65 years old at the time of loan maturity. |
| Business Vintage | The business must be at least 2 years old. |
| Credit Score | Both the promoter and the business must have a good credit score of more than 650. The credit score of co-applicants is also checked wherever applicable. The credit score has a crucial role to play in determining the creditworthiness of the borrower. It determines the limit of the lender’s credit exposure based on the repayment history of the business. |
Interest rates and Charges on a Business Loan in Ahmedabad
The interest rates on a Business Loan in Ahmedabad can vary from lender to lender. However, here is an overview of the interest rates and charges on various types of business loans in Ahmedabad:
| Business Loan Type | Interest Rate |
| Unsecured Loans | Starting from 16% p.a. |
| Working Capital Loans | Starting from 9% p.a. |
| Secured Business Loans | Starting from 8.85% p.a. |
| Loans against Property | Starting from 8.85% p.a. |
| Equipment Loans | Starting from 9% p.a. |
| Bill Discounting/Invoice Discounting | As per the financial institution |
Additionally, banks and other financial institutions also charge processing fees which can vary based on the loan type and usually range from 1% to 2% of the loan amount.
Interest rates by various banks and NBFCs for Loan Against Property in Ahmedabad
| Banks / NBFCs | Interest Rates | Tenure | Processing Fees |
| HDFC Bank | Starting 8.80% | Maximum 15 years | 0.50% |
| ICICI Bank | Starting 9% | Maximum 15 years | 0.75% |
| Kotak Mahindra Bank | Starting 9% | Maximum 15 years | 0.75% |
| Axis Bank | Starting 9% | Maximum 15 years | 0.50% |
| IDFC Bank | Starting 9% | Maximum 20 years | 1% |
| Standard Chartered Bank | Starting 9% | Maximum 15 years | 0.50% |
| Deutsche Bank | Starting 9% | Maximum 15 years | 0.75% |
| Bajaj Finance | Starting 9.5% | Maximum 15 years | 1% |
| L&T Finance | Starting 9.5% | Maximum 15 years | 1% |
| India Bulls | Starting 10% | Maximum 15 years | 1% |
| RBL Bank | Starting 9% | Maximum 15 years | 1% |
| Hero Fincorp | Starting 10.50% | Maximum 15 years | 1% |
| HDB Finance | Starting 9.5% | Maximum 15 years | 1% |
| HSBC | Starting 9% | Maximum 15 years | 0.50% |
| Shinhan Bank | Starting 9% | Maximum 15 years | 0.50% |
| AU Small Finance Bank | Starting 9.25% | Maximum 15 years | 1% |
How to apply for a Business Loan in Ahmedabad through OneNDF
The process of applying for a Business Loan in Ahmedabad may differ based on the type of business loan availed.
Many banks at times provide small business loans specifically catering to the requirements of MSMEs, however, given the lack of knowledge about business loans offered and the opaqueness in the online business loan application process, small business owners are often unable to get any immediate business finance and end up running from pillar to post to get a business loan in Ahmedabad.
To apply for a business loan on OneNDF, please follow these streamlined steps:
1. Sign-Up Process:
- Click on the “Sign-up” button to begin your journey with OneNDF or Click here
- Enter your mobile number to receive a One-Time Password (OTP) for verification.
2. Business Authentication:
- After signing up, provide your PAN number. This step is crucial for verifying your business identity.
3. Registration and Profile Completion:
- Complete the registration process to build your profile on the platform. A comprehensive profile increases the success rate from initial login to loan sanction.
4. Credit Score Check:
- We will conduct a soft-pull of your credit score. This process does not generate an inquiry, thus not affecting your credit score.
5. Financial Information:
- You can upload the Downloaded ITR for your business (detailed PDF) or you can authenticate the credentials for the ITR portal and we will fetch this information and give you a snapshot . This helps in assessing your business’s financial stability.
6. GST Returns:
- Authenticate the GST credentials. Loans are provided to MSME clients, including both self-employed professionals and non-professional business owners based on their GST returns. ((This information can serve as a quick snapshot to help you understand your business better. It allows you to identify your top suppliers and buyers and monitor your returns effortlessly with just a click, eliminating the need to rely on your accountant for this data.))
7. Banking:-
- Provide banking details for the last 12 months. This helps in analysing your banking turnover and financial transactions.
Upon completing these steps, we will tailor loan offers from lenders that best fit your requirements. Additionally, a comprehensive profile of your business will be created. This profile not only helps you understand your current business health but also provides recommendations on improving key financial ratios to maintain a healthy bottom line.
FAQs
Can I get a 1 crore business loan in Ahmedabad without collateral?
Yes, it is possible to get a business loan of INR 1 crore without collateral if you have a good credit score and follow all the eligibility criteria of the bank or the NBFC.
What is the EMI for a 55 lakh loan?
The EMI for an INR 55 lakh loan at an interest rate of 12% for a tenure of 5 years would be INR 1,11,222 The installment can vary depending upon the repayment tenure of the loan and the interest rate of the loan. You can calculate the EMI of your loan using OneNDF’s Business Loan EMI calculator.
Can I get a 40 lakh loan for pharmaceutical business?
Yes, several banks and NBFCs like HDFC Bank, ICICI Bank, Axis Bank, and Tata Capital among others provide 40 lakh business loans. You can check your eligibility with various such lenders and apply through OneNDF based on the unique requirements of your business.
Can I get 20 lakhs in Ahmedabad without collateral?
Many Banks and NBFCs provide an unsecured business loan which enables you to avail an amount of INR 20 lakhs without collateral.
