| 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 Nagpur: Nagpur is a city located in northeastern Maharashtra state in western India. Positioned near the geographic center of the country, it is located along the Nag River. The topography in and around Nagpur is characterised by low flat-topped hills, expansive tablelands, and rich, dark soils in the valleys of rivers and streams.
Nagpur serves as the main hub for commerce in the Vidhan Region. The state has been a constant ranker in terms of business and manufacturing in the state of Maharashtra. It currently hosts a number of households with an annual income of INR 1 Crore or more and is also ranked as one of the fastest-growing urban centres in the country.
Prevalent Industries in Nagpur
Nagpur is home to both the manufacturing and commercial sector. The presence of the Buriboti industrial area recognised as the largest in Asia in terms of area and the emergence of real estate agencies makes the city a perfect spot for setting up manufacturing companies as well as real estate businesses.
Some of the major industries located in Nagpur include Indo Rama Synthetics, Gammon India Limited (a power transmission company), Hyundai Unitech, KEC, SSP Pvt Limited Industrial Dryers, ACC Nihon Casting Ltd, Woolworth (I) Limited Woolen Yarn, Munis Forge Limited Forging, Voltas Limited Washing Machine, and more.
Situated on the western fringes of Nagpur, the Hingna industrial estate is another notable industrial zone, housing approximately 900 small and medium industrial units. Some important establishments in this area include VIP Industries (Luggage casting unit), NECO Ltd (tractor manufacturing plant), Ajanta toothbrushes, Bajaj Auto group, Candico, Sharda Ispat Limited Rolling Mills, and Sanjay Group, among others.
The city is also known as the “orange city” due to its orange production. Apart from these Nagpur is a culturally rich city and is currently witnessing the rise of startups and educational institutions.
Types of Business Loans in Nagpur
There are various types of Business Loans offered in Nagpur, 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 Loans Nagpur
The most common reasons for taking out a business loan include:
- For businesses involved in the agricultural sector, business loans can help in the expansion of orchards, improvement of storage facilities, and enhancement of transportation infrastructure.
- Entrepreneurs in the real estate sector in Nagpur may use business loans to fund property development projects. These funds could be utilised for acquiring land, constructing residential or commercial properties, and improving infrastructure.
- For start-ups, Business loans in Nagpur could be beneficial for upgrading services, acquiring modern equipment, and expanding the range of offerings
- Entrepreneurs looking to establish health and wellness centers in Nagpur could use business loans to set up the infrastructure, acquire fitness equipment, and hire skilled professionals such as yoga instructors and wellness experts.
Documents required for a Business Loan in Nagpur
The documents required for a Business Loans in Nagpur 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 Nagpur:
| 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 Nagpur
To avail Business loans in Nagpur, the borrower must fulfill 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. |
Interest rates and Charges on Business loans in Nagpur
T he interest rates on Small Business Loans in Nagpur can vary from lender to lender.However, here is an overview of the interest rates and charges on various types of business loans in Nagpur:
| 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 Nagpur
| 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 Nagpur through OneNDF
The process of applying for Business loans in Nagpur 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
What types of business loans are available in Nagpur?
Various types of business loans are available, including term loans for general business needs, working capital loans for day-to-day operations, and specific loans for purposes like equipment purchases.
What is the business loans interest rate in Nagpur?
Typically, the business loan interest rate in Nagpur ranges from 9 to 18% depending upon various factors such as the type of loan required, the credit score of the borrower, loan tenure, etc.
How much funding can I expect from a business loans in Nagpur?
Loan amounts vary based on the borrower’s needs, business vintage, and the type of loan. Depending on the circumstances, lenders may offer anything from a few lakhs to several crores.
What is the repayment period for business loans in Nagpur?
The repayment period varies from Lender to Lender. Generally, it ranges from 12 months to 60 months.
Can I get a business loan in Nagpur without collateral?
Yes, you can avail a business loan in Nagpur without collateral.
