| 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 Loans in Hyderabad: Hyderabad, situated in South India, serves as the capital of Telangana and holds the de jure status as the capital of Andhra Pradesh. Covering an area of about 650 square kilometres, the city is home to a population of 6.7 million. Famous for its vibrant history and delectable cuisine, Hyderabad was formerly a prominent hub for pearl and diamond trading, earning it the enduring title of the “City of Pearls”.
Known for its plethora of monuments and heritage sites, the state holds the iconic Charminar as its foremost landmark. This impressive structure, constructed by Muhammed Quli Qutb Shah, stands as a tribute to the victims of the plague. Another notable attraction is the Golconda Fort, which has witnessed the ascendance of numerous dynasties and remains an attractive destination for tourists.
Prevalent industries in Hyderabad
Being an ancient city, Hyderabad has emerged as a major economic hub in recent years. Established in 1591, the city has the highest number of special economic zones in the country.
Hyderabad’s key sectors include Tourism, Biopharmaceuticals, Retail & Real Estate, Electronics, and Information Technology. With persistent market growth, the city stands as the primary contributor of both the GDP (Gross Domestic Product) of Hyderabad and state tax revenue.
Recognised as a hi-tech city, Hyderabad hosts a substantial amount of IT companies, solidifying its position as a major player in the technology sector.
Types of Business Loans in Hyderabad
There are various types of Business Loans offered in Hyderabad, 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 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 Loans in Hyderabad
The most common reasons for taking out a business loan include:
- Manufacturing industries in Hyderabad might require loans to procure advanced machinery and improve production processes.
- Biopharmaceutical companies in Hyderabad may require business loans for research and development purposes. This includes funding for clinical trials, laboratory equipment, and hiring skilled researchers to advance their innovations in the pharmaceutical sector.
- Given Hyderabad’s dominance in the Information Technology sector, businesses often take out loans to invest in the latest technologies and upgrade their IT infrastructure.
- Many businesses might avail business loans for acquiring new office spaces, warehouses, or manufacturing facilities to accommodate growing operations.
Documents required for a Business Loan in Hyderabad
The documents required for a Business Loan in Hyderabad 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 Hyderabad:
| 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 Business Loans in Hyderabad
To avail Business loans in Hyderabad, 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 Business loans in Hyderabad
The interest rates on Small Business Loans in Hyderabad can vary from lender to lender. However, here is an overview of the interest rates and charges on various types of business loans in Hyderabad:
| 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 Hyderabad
| 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% |
Also Check: Loan Against Property in Hyderabad
How to apply for Business loans in Hyderabad through OneNDF
The process of applying for Business loans in Hyderabad 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 long does it take for your business loan to get disbursed?
It typically takes 2-3 days for the disbursal of a business loan.
What is the Credit score required to avail Business loans in Hyderabad?
A Credit score of 750+ is required to avail Business loans in Hyderabad.
Can I get a loan for starting a new business?
Yes, you can avail a working capital loan or a term loan for starting a new business.
What is the minimum tenure of a business loan?
The minimum tenure of a business loan is 12 months.
Are the results from the Business Loan EMI Calculator accurate?
The EMIs calculated using a business loan EMI Calculator provided by OneNDF are accurate. However, the actual EMI to be paid by the borrower may vary as per the terms and conditions of the loan.
