| 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 Indore: Situated in the heart of Madhya Pradesh, Indore is also called as “Mini Bombay” of India. While Bhopal holds the political status as the capital of Madhya Pradesh, it is indisputable that Indore serves as the commercial capital of the state.
On the map the city is located on the west of the state of Madhya Pradesh, However, it has close proximity to the geographic centre of India. Covering an area of 214 square kilometres, Indore is surrounded by Chambal River in the west and Kshipra in the east.
As the largest city in Madhya Pradesh, Indore has consistently earned the title of “the cleanest city in India” for six consecutive years. The harmonious mix of old heritage structures and modern multi-storeyed buildings makes the city unique in its own way.
A city holding to its culture and traditions along with the tag of being the commercial capital, Indore is truly a fabulous place to experience the most delicious culinary delights.
Prevalent Industries in Indore
Indore, the most populous city in the state, stands as the prime commercial and industrial hub. It houses a well-established industrial sector, comprising textiles, tiles, cement, chemicals, tents, furniture, sporting goods, grain milling, and metalworking.
It has also made a name within the commercial sector on a national scale, attracting major corporate firms and institutions.
A rise in real estate development has been seen in the past few decades, making the city an emerging real estate hub of the country. The state government is also promoting the establishment of IT companies and planning to build technology parks dedicated to the IT industry within the city.
Some other major industries in Indore include agro-based, textile, IT, paper & paper products, leather-based, chemical-based, rubber, plastic & petro-based, metal-based, engineering units, food-based, hospitality, tourism, technology, construction, and real estate.
Types of Business Loans in Indore
There are various types of Business Loans offered in Indore, 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 Indore
The most common reasons for taking out a business loan include:
- Businesses in Indore, particularly in sectors like IT, construction, and real estate, may require business loans for buying new office spaces, upgrading technology, or investing in manufacturing facilities to meet growing demand.
- Engineering units in Indore might require loans to invest in the latest technologies and upgrade their infrastructure.
- With Indore emerging as a real estate hub, businesses in this sector may opt for loans to fund property development and construct hotels or commercial spaces.
- Manufacturing and agro-based industries in Indore may explore business loans for investing in new production lines, expanding product portfolios, or improving processing facilities.
Documents required for a Business Loans in Indore
The documents required for a Business Loans in Indore may vary based upon the type of business loan. However, the following documents are usually sought by banks and NBFCs for a small business loans in Indore:
| 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 Indore
To avail Business loans in Indore, 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 Indore
The interest rates on Small Business Loans in Indore can vary from lender to lender. However, here is an overview of the interest rates and charges on various types of business loans in Indore:
| 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 Indore
| 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 loans in Indore through OneNDF
The process of applying for Business loans in Indore 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
Can I get a 20 Lakh loan without collateral?
Yes, many banks and NBFCs provide unsecured funding which enables the loan applicant to get a loan of up to INR 20 Lakhs without collateral.
What is the Credit score required to avail Business loans in Indore?
A Credit score of 750+ is required to avail Business loans in Indore.
What is the full form of EMI in a business loan?
EMI in a business loan stands for Equated Monthly Income.
How to get 15 lakhs of business loan immediately?
It typically takes 2-3 days for the disbursement of a business loan. You can apply for a business loan at OneNDF to get immediate and hassle-free funding of INR 15 Lakhs.
Are there any business loans exclusively for women entrepreneurs?
Yes, a number of banks and NBFCs provide business loans exclusively for women entrepreneurs. You can also avail business loans through various schemes such as Self Help Group (SHG), Cent Kalyani, etc.
