| 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 Patna: Patna, the heart of Bihar, where tradition and modernity collide, and the Ganga flows to the beat of our colourful history. Picture the lively hustle and bustle of Patna Chowk, where the delicious aroma of litti-chokha mingles with the sounds of laughter and haggling.
A gentle breeze from the Ganga whispers the tales of Ashoka’s ancient capital and the remnants of the Magadh Empire. Here, the past effortlessly blends with the future. The energetic vibes of students from Nalanda and the deep discussions at Patna University create an intellectual atmosphere that transcends time.
It’s a stretch of really fertile land, surrounded by three rivers – Ganga, Sone, and Poonpun. So, agriculture has always been the backbone of the city’s economy. The main trade here is in agricultural products like raw and processed sugarcane and grain. But now, Patna is becoming more than just an agricultural city. It’s growing into a thriving service community. It’s becoming an important centre for business activities in the eastern part of India.
Patna is even ranked as the 21st fastest-growing city in the world, and the fifth fastest-growing city in India. The city’s expected growth rate is around 3.72% per year.
The Economy of Patna
For many years, agriculture has played a significant role in Patna’s economy. The fertile plains near the city have allowed for the cultivation of various crops such as rice, wheat, pulses, and vegetables. Additionally, Patna has served as a central hub for trading agricultural produce from the surrounding rural areas.
The city’s advantageous location along the banks of the River Ganges has historically facilitated trade and commerce, contributing to its rich history as a trading centre that dates back to ancient times. The commercial areas and bustling markets within Patna have played a vital role in supporting local businesses and fostering trade activities.
In recent times, there has been a concerted effort to promote industrialization in the state of Bihar, leading to some growth in the manufacturing and industrial sectors within Patna. This diversification includes the establishment of industries such as textiles, leather, and food processing.
These developments have not only expanded the city’s economic landscape but have also contributed to job creation and the overall development of the region.
Types of Business Loans in Patna
There are various types of Business Loans offered in Patna, 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 in Patna
Retailers and wholesalers often find themselves in need of extra funds to ensure they have enough stock on hand, especially during busy times of the year. Business loans come in handy when it comes to managing fluctuations in inventory and meeting the demands of customers.
A crucial factor for the success of any business is effective marketing. Loans can be used to finance marketing and advertising campaigns, which play a significant role in increasing the visibility of businesses in Patna, attracting more customers, and ultimately boosting sales.
Just like any other city, Patna sees businesses seeking to expand their operations, whether it’s by opening new branches, increasing production capacity, or venturing into new markets. In such cases, business loans provide the necessary capital for these growth initiatives.
Documents required for a Business Loans in Patna
The documents required for a Business Loans in Patna may vary based on the type of business loan. However, the following documents are usually sought by banks and NBFCs for a small business loans in Patna :
| 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 a Business Loans in Patna
To avail of a Business Loan in Patna, 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 Loans in Patna
The documents required for a Business Loans in Patna may vary based on the type of business loan. However, the following documents are usually sought by banks and NBFCs for a small business loans in Patna :
| 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 Patna
The interest rates on a Business Loan in Patna can vary from lender to lender. However, here is an overview of the interest rates and charges on various types of business loans in Patna :
| 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 Patna
| 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 Patna through OneNDF
The process of applying for Business loans in Patna 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.
Frequently Asked Questions (FAQs)
Do you need to have collateral to get a business loan?
It depends on the loan and how good the borrower’s credit is. Sometimes they might ask for collateral, other times they won’t. Some loans are unsecured, but others might need you to put up some assets as a backup.
How long does it usually take to get approved for a business loans in Patna?
The way lenders approve loans can be different. Online lenders tend to give faster approvals than regular banks. How long it takes also depends on how complete your application and documents are.
Is a CIBIL score required for a business loans in Patna?
Yes, usually a CIBIL score is needed when you’re applying for a business loans in Patna. Lenders use this score to check if the company, its owners, or its guarantors are trustworthy when it comes to repaying the loan.
How can I qualify for a business loans in Patna?
Eligibility requirements usually involve things like how reliable the business is with money, how financially secure it is, the borrower’s credit record, their business plan, and why they need the loan. Different lenders might have different requirements.
What is the repayment tenure for business loans in Patna?
Repayment periods can differ, but they typically span from a few months to a few years, depending on the loan’s type and amount. It’s important to pick a duration that matches the business’s cash flow.
