| 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 Allahabad: Prayagraj is located where the ancient city of Prayag once stood, a sacred place that held as much renown as the cities of Varanasi and Haridwar. Prayagraj district, the most populous in the state and ranking 13th in India for population, has its administrative headquarters located here. It’s also part of the larger Prayagraj division.
The economy of Allahabad, like many other cities, is diverse and includes various sectors such as agriculture, trade, education, tourism, and services. One can avail business loans in Allahabad for betterment of the business.
Economy of Allahabad
Prayagraj boasts a robust and varied economy, encompassing a wide range of sectors. These include government offices at both the state and central levels, educational and research institutions, real estate, retail businesses, the banking sector, the tourism and hospitality industry, and agriculture-based industries among others.
Railways along with transport and logistics also play a significant role in the city’s economy. The construction sector is indeed a major contributor to Prayagraj’s economic growth. There are secondary manufacturers and service providers that may or may not be officially registered. Additionally, the city is known for its glass and wire-based industries.
Prayagraj has always been known as a hub for administration and education. While it does have a small industrial sector, its main economic activity revolves around the trade of agricultural goods. However, in recent years, tourism has started to play a more significant role in the region’s economy. The city and its surrounding areas are rich with historical and religious landmarks that attract an increasing number of visitors each year.
Purpose of Business Loans in Allahabad
- If your cotton textile business in Allahabad has grown enough and is currently expanding, purchasing land or leasing property to expand your business activities for cotton factories is an opportunity you do not want to miss. Based on the growth forecast, companies can decide to expand their business.
- The duration of glass manufacturing technology is limited, so the glass industry always needs to purchase or upgrade existing equipment and technology. The advantage of purchasing glass manufacturing equipment is that you can claim devaluation each year without having to calculate the tax benefit in the first year.
- Businesses such as fertiliser, pesticide, farm equipment, and seed retailers often lack working capital for day-to-day operations. They can take out short-term business loans.
- If a business wants to get a larger loan, it must have a good credit history. To ensure this, individuals or owners improve their credit history by taking short-term loans and repaying them on time.
Types of Business Loans in Allahabad
There are various types of Business Loans offered in Prayargaj, 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 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
Documents required for a Business Loan in Allahabad
The documents required for a Business Loan in Prayagraj may vary based on the type of business loan. However, the following documents are usually sought by banks and NBFCs for a small business loan in Allahabad:
| 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 Allahabad
To avail a Business Loan in Prayagraj, 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 | The promoter and the business must have a good credit score of over 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 Allahabad
The interest rates on a Business Loan in Prayagraj can vary from lender to lender. However, here is an overview of the interest rates and charges on various types of business loans in Allahabad:
| 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 Allahabad
| 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 Allahabad through OneNDF?
The process of applying for a Business Loan in Prayagraj 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 Allahabad.
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 related Business loan in Allahabad
Which loan is best for business in Allahabad?
The right loan for a business hinges on several elements such as its size and specific needs. For instance, an unsecured business loan like creche and cracker manufacturing or working capital loan might be the best fit for businesses in need of quick funds for daily operations. On the other hand, a company looking to grow could opt for a Loan against property with reasonable interest rates via OneNDF.
How can I get a business loan furniture store easily in Prayagraj?
You can apply for a business loan online through OneNDF, which ensures that you do not have to physically fill out an application form by going to a bank or NBFC.
What is the EMI for a 35 lakh loan in Allahabad?
The EMI for an INR 35 lakh loan at an interest rate of 12% for a tenure of 5 years would be INR 77,856. The instalment 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.
What is the full form of EMI?
The full form of EMI is Equated Monthly Instalments.
