| 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 Ranchi: Ranchi, the capital city of Jharkhand, is a lively and happening place. It’s not just a regular city; it’s a fascinating blend of India’s tribal culture and modern ambitions. Ranchi is like a melting pot where tradition and modernity come together. It has great schools, hospitals, and shopping centres, making it a popular destination for dreamers and go-getters.
Ranchi is not just a pretty place, it’s also a great spot for businesses to grow. Whether you’re a new business trying to get started or an existing one looking to expand, Ranchi has a lot of opportunities for loans and growth. The economy of Ranchi is all about farming and mining, making it a great place for businesses to thrive.
Ranchi’s economy is a cool mix of old-school and new-age stuff. You got farming and factories teaming up, and education and tourism hanging out together. This combo makes Ranchi a big deal in the economic scene of Jharkhand.
The Heavy Engineering Corporation (HEC) brings an industrial vibe to the city, with the sound of machines blending in with the beat of tribal drums. Ranchi’s growing IT sector adds a modern touch to its character, showing that the city is all about moving forward while still honouring its traditions.
The Economy of Ranchi
In Ranchi, agriculture is super important because farmers grow crops like rice, pulses, and veggies in the fertile land. This not only feeds the locals but also helps provide food for the whole region. In the past few years, Ranchi has seen a big increase in industrial stuff going on. Lots of small and medium businesses have done well, doing all kinds of things like making stuff and providing services.
This mix of stuff has created more jobs and made the economy stronger. Ranchi has become like a magnet for students and job seekers, boosting growth in different sectors, thanks to its educational institutions, reputed government offices, and all that jazz.
In addition, tourism has started to contribute to the local economy, as more and more people are attracted to Ranchi’s stunning natural attractions like waterfalls, lakes, and picturesque landscapes. The hospitality sector has also grown, catering to the growing influx of tourists.
Types of Business Loan in Ranchi
There are various types of Business Loans offered in Ranchi, 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 Ranchi
- Entrepreneurs and business owners often look for loans to expand their existing ventures. Whether they want to open a new branch, increase production capacity, or offer new products/services, business loans provide the necessary capital for growth.
- Many businesses in Ranchi use loans to effectively manage their day-to-day operations. This includes covering expenses like salaries, and bills, and restocking inventory, ensuring smooth business operations. To stay competitive in today’s market, businesses often need to invest in the latest technologies.
- Business loans allow companies in Ranchi to upgrade equipment, adopt new technologies, and improve overall efficiency. As the start-up culture in Ranchi grows, aspiring entrepreneurs often rely on business loans to start their ventures. These funds are essential for covering initial setup costs, acquiring resources, and establishing a solid foundation for the business.
Eligibility Criteria for a Business Loan in Ranchi
To avail of a Business Loan in Ranchi, 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. |
Documents required for a Business Loan in Ranchi
The documents required for a Business Loan in Ranchi 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 Ranchi:
| 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 Ranchi
The interest rates on a Business Loan in Ranchi can vary from lender to lender. However, here is an overview of the interest rates and charges on various types of business loan in Ranchi:
| 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 Ranchi
| 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 Business loan in Ranchi through OneNDF
The process of applying for Business loan in Ranchimay differs based on the type of business loan availed.
Many banks at times provide business loans specifically catering to the business cash flow 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 support and end up running from pillar to post to get a business loan.
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 kinds of business loans are there in Ranchi?
In Ranchi, you can find different types of business loans like term loans, working capital loans, equipment financing, and business lines of credit. They are designed to suit different business requirements.
Can I apply for a business loan for a startup in Ranchi?
Yeah, there are plenty of lenders in Ranchi who offer loans for startups. But, just so you know, startups might have to go through some extra checks. The lenders usually take into account things like business plans, projections, and the entrepreneur’s background.
Are there any government schemes or incentives for business loan in Ranchi?
Yes, both the state and central government are always coming up with schemes and incentives to help businesses. It’s a good idea to reach out to the local authorities or financial institutions to get the lowdown on any current programs.
How much can I borrow through a business loan in Ranchi?
The amount of money you can borrow for a business loan depends on how well your business is doing, how trustworthy you are with money, and what you want to use the money for. The people who lend you the money will look at how likely you are to pay it back before deciding how much to give you.
Can self-employed individuals and small businesses apply for business loan in Ranchi?
Yes, there are special loans for people who work for themselves or have a small business in Ranchi. Different lenders might have different rules for who can get these loans. These loans can help small businesses grow and get better.
