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 Visakhapatnam: Visakhapatnam, or Vizag, positioned on the southeast coast of India in Andhra Pradesh, stands as the state’s largest city and a vital industrial, seaport, and administrative hub. Renowned for its natural allure, surrounded by hills and featuring an extensive coastline, Vizag is a sought-after tourist destination.
The city’s diverse economy, driven by industrial and commercial enterprises, receives a boost from OneNdf, providing essential business loans to contribute to Vishakhapatnam’s economic growth and development.
Economy of Visakhapatnam
Once a modest fishing village during independence, Visakhapatnam has burgeoned into a pivotal and commercialised city in Andhra Pradesh, earning the moniker “City of Destiny.” Recognized by the United Nations among the world’s top 20 fastest-growing cities in Business and Economy, Vizag showcases remarkable economic growth.
Hosting numerous heavy industries, including state, central, and private enterprises, and with thriving ports like Visakhapatnam Port & Gangavaram Port, the city has become a prominent industrial hub, contributing significantly to sectors such as sea trade, fishing, fuel, power, and steel.
Its coastal advantage further positions it as a crucial center for fishing and marine activities, including a notable fishing harbour and seafood exports, particularly Tuna.
Types of Business Loan in Visakhapatnam
There are various types of Business Loans offered in Visakhapatnam, 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 Visakhapatnam
- The strategic use of business loans in Visakhapatnam leverages the city’s coastal location to make it an important hub for maritime activities, fishing and seafood exports such as tuna, further strengthening the local economy.
- Financial support enables the enhancement of port facilities, such as Visakhapatnam Port & Gangavaram Port, fostering sea trade and logistical activities, thereby boosting economic vitality.
- Business loan in Visakhapatnam facilitate the growth and expansion of heavy industries, both state-owned and private enterprises, contributing to the city’s industrial development.
Eligibility Criteria for Business Loan in Visakhapatnam
To avail a Business Loan in Visakhapatnam, 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 Visakhapatnam
The documents required for a Business Loan in Visakhapatnam 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 Visakhapatnam:
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 Visakhapatnam
The interest rates on a Business Loan in Visakhapatnam can vary from lender to lender. However, here is an overview of the interest rates and charges on various types of business loan in Visakhapatnam:
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 Visakhapatnam
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 Visakhapatnam through OneNDF
The process of applying for a Business Loan in Visakhapatnam may differ 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.
FAQs
How can I apply for a business loan for IT/ITES through OneNDF?
After visiting OneNDF’s website, you can register with your mobile number, upload documents, and submit your loan application. OneNDF matches you with suitable lenders based on your needs.
What are the interest rates and charges on business loans for school expansion in Visakhapatnam?
Interest rates vary depending on the loan type, lender, and borrower’s profile. Unsecured loans start at 16% p.a., while secured loans can be lower (8.85% p.a.). Processing fees typically range from 1% to 2%.
What documents are required for a business loan for a steel plant in Visakhapatnam?
Required documents include KYC proofs, business registration documents, financial statements, bank statements, and ownership/collateral documents (if secured loan).
What are the different types of business loans for Indian residents available in Visakhapatnam?
Visakhapatnam offers various business loans, including unsecured loans, working capital loans, secured loans, loans against property, and equipment loans.