| 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% |
Chennai, formerly called Madras, is the capital of Tamil Nadu in India. It is a prominent centre for culture, economy, and education in the southern part of the country. The city is famous for its beautiful beaches, historical landmarks, and vibrant cultural activities.
With a long history influenced by various dynasties and colonial powers, including the Pallavas, Cholas, and the British, Chennai has become a major economic hub. It plays a vital role in industries like information technology, manufacturing, healthcare, and automobiles. The city has experienced rapid growth, particularly in the IT and automotive sectors, contributing significantly to the overall progress of the region.
The economy of Chennai
Chennai holds a prominent position in the Indian IT industry and is home to numerous IT parks and software companies. The city boasts a thriving IT ecosystem, attracting both national and international firms who have established their presence there. The IT sector has played a vital role in Chennai’s economic growth, generating various employment opportunities and luring skilled professionals to the city. Often referred to as the “Detroit of India,”
Chennai serves as a major hub for the automobile industry, with many automotive companies, both local and global, setting up their manufacturing plants in and around the city. This sector significantly contributes to Chennai’s economy by providing a substantial number of jobs and contributing to the export industry.
Furthermore, Chennai boasts a well-developed manufacturing and industrial sector, encompassing various industries such as textiles, chemicals, leather, and electronics.
The city’s advantageous location and advanced infrastructure make it an appealing destination for businesses engaged in manufacturing activities. Additionally, Chennai has observed substantial growth in its financial sector, with the presence of banks, financial institutions, and insurance companies.
The city’s financial services sector plays a pivotal role in supporting businesses and individuals in managing their finances, thus making a significant contribution to the overall economic development of Chennai.
Types of Business Loan in Chennai
There are various types of Business Loans offered in Chennai, 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 for buying equipment or to upgrade machinery. |
| 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 Chennai
Business loan in Chennai are used for different purposes by different types of businesses.
- Entrepreneurs and new businesses often need funds to start their ventures, which can be used for things like renting a space, buying equipment, and other startup expenses.
- Many businesses in Chennai also use loans to maintain their working capital, covering expenses like salaries, rent, utilities, and inventory.
- Established businesses that want to grow, open new branches, or introduce new products or services also rely on business loans.
- Some businesses in Chennai might take out loans to invest in marketing and advertising campaigns, such as digital marketing or traditional advertising, to increase brand visibility and attract more customers.
Overall, business loan in Chennai are a crucial tool for businesses at different stages, whether they are starting a new venture, expanding, or facing financial challenges.
Documents required for a Business Loan in Chennai
The necessary documents required for a Business Loan in Chennai may vary based upon the type of business loan. However, the following documents are usually sought by a Business loan provider in Chennai:
| 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 Chennai
To avail a Business Loan in Chennai, 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 Chennai
The Business Loan interest rate can vary from lender to lender in Chennai. However, here is an overview of the Business Loan interest rates in Chennai:
| 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 Chennai
| 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% |
Read full Information about loan against property in chennai
How to apply for a Business Loan in Chennai through OneNDF
The process of applying for a Business Loan in Chennai may differ based on the type of business loan availed.
Many banks at times provide collateral-free loans, MSME loans and 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 loan application process, small businesses are often unable to get any financial assistance and end up running from pillar to post to get a business loan in Chennai.
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
Which business is best in Chennai?
The tourism and travel industry presents a cost-effective business opportunity, especially in Chennai, which is known for its captivating attractions. Moreover, the city boasts a diverse range of clothing options, including luxurious silk and comfortable cotton, in addition to a plethora of designs and fabrics. Hence, venturing into the garment or clothing retail sector could be a viable and rewarding choice.
How to start doing business in Chennai or Tamil Nadu?
To establish a business in Tamil Nadu or Chennai, it is mandatory to obtain a Goods and Service Tax (GST) Registration. Once you have completed this registration process, you will be able to commence your business operations.
What are some business ideas that can be started in Chennai?
There are numerous exceptional business ventures that one can pursue, such as clothing, food business, IT services, digital marketing, consulting, coaching, and many others.
