| 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% |
Chandigarh, the dream city of India’s first Prime Minister Jawahar Lal Nehru, was designed by the famous French architect Le Corbusier. The name Chandigarh is taken from the Chandi Mandir temple located near the site chosen for the city.
The god Chandi, the goddess of strength, and the Garh fort located behind the temple gave the city the name “Chandigarh – the beautiful city”. Chandigarh is also home to large-scale business and commercial activities. Residents can easily avail business loan in Chandigarh to upgrade their commercial activities.
Economy of Chandigarh
Being a union territory, Chandigarh has the natural advantage of being the capital of two states – Punjab and Haryana. For this reason, Chandigarh is also home to large-scale business and commercial activities. The city is becoming a hub for a variety of commercial sectors, including services, education, healthcare, information technology, and food processing.
The districts bordering Chandigarh are Panchkula in Haryana and Mohali in Punjab. Chandigarh along with these districts is called “Triple City”. The vibrant commercial activity in the area has also given a major boost to Chandigarh’s economy.
To attract investment to the city, the government introduced various sector-specific policies in the fields of information technology, biotechnology, and formed special economic zones. Owing to its excellent quality of life, large human resource base and investment policies,
Chandigarh has emerged as one of the most preferred destinations for IT companies in the country. Chandigarh’s economic dependence for income generation is on agriculture, industry, animal husbandry, fisheries, information technology and tourism. Key economic goods include engineering products, automobile parts, tires and tubes, household goods, cables, antibiotics, biomedical devices, kitchenware, bicycle parts, wool tops, and hosiery.
Types of Business Loan in Chandigarh
There are various types of Business Loans offered in Chandigarh, some of which include:
| Business Loan Type | Uses |
| Unsecured Business Loans | These are term loans 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 Loan in Chandigarh
- Expanding business operations by purchasing or leasing property becomes crucial as your enterprise experiences growth. Capitalising on opportunities and aligning with growth projections may lead to multiple expansion phases.
- Small businesses often lack sufficient working capital for daily operations, resorting to short-term loans until assets generate ample revenue.
- Small businesses often need instant capital for inventory due to high demand. Loans help bridge the funding gap for production needs.
Eligibility Criteria for a Business Loan in Chandigarh
To avail a Business Loan in Chandigarh, the borrower must fulfil the following business loan 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. |
Documents required for a Business Loan in Chandigarh
The documents required for a Business Loan in Chandigarh 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 Chandigarh:
| 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). |
Interest rates and Charges on a Business Loan in Chandigarh
The interest rates on a Business Loan in Chandigarh can vary from lender to lender. However, here is an overview of the interest rates and charges on various types of business loan in Chandigarh:
| 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 |
Interest rates by various banks and NBFCs for Loan Against Property in Chandigarh
| 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 Chandigarh through OneNDF
The process of applying for a Business Loan in Chandigarh 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 Chandigarh.
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.
Frequently Asked Questions (FAQs)
What is the minimum CIBIL score for a business loan in Chandigarh?
Generally, a CIBIL score of 700 or above is considered satisfactory for business loan eligibility in Chandigarh. It’s important to note that lenders also consider other factors, including your financial statements, business income, business history, and industry sector.
Can I get a business loan for biomedical instruments without ITR?
Securing a business loan for biomedical instruments without Income Tax Returns (ITR) may be challenging. Lenders typically assess financial stability through ITR to evaluate repayment capacity. Consider alternative funding options or consult with lenders for specific requirements.
What is the processing fee for a business loan for crockery in Chandigarh?
This refers to an upfront payment that the borrower makes to cover the administrative costs related to this procedure. Generally, banks or other financial institutions impose a fee ranging from 1-2% of the main loan amount after the disbursement of the loan.
What steps can I take to improve my credit score for a business loan in Chandigarh?
To enhance your credit score for a business loan in Chandigarh: Obtain your credit report, pay bills punctually, reduce debts, diversify credit types, limit new accounts, build credit history, negotiate with creditors, budget wisely, seek professional advice, and remain patient.
What types of businesses qualify for equipment loans in Chandigarh?
Equipment loans are ideal for businesses looking to purchase machinery or upgrade the existing machinery.
