Apply for Business Loan in Bangalore Online
Business Loan in Bangalore
Bangalore has emerged as the ‘start-up’ center of India because of the arrival of tech firms and top-notch infrastructure. As companies expand, the need for funding to support new projects and operations rises, making timely access to capital essential for achieving success. Business loans provide the easiest method to gather capital, allowing businesses to seek loans, such as MSME loans, to obtain financing for their projects.
Applying for a business loan can provide companies with the essential capital to grow their operations, make investments, and remain competitive in the marketplace.
Table of Contents
Interest rates and Charges on Business loans
The interest rates on Small Business Loans in Bangalore can vary from lender to lender. However, here is an overview of the interest rates and charges on various types of business loans in Bangalore:
| Business Loan Type | Interest Rate |
|---|---|
| Unsecured Loans | Starting from 16% p.a. |
| Working Capital Loans | Starting from 9% 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 Business Loan
| Bank/ NBFCs | Interest Rate | Tenure | Processing Fee |
|---|---|---|---|
| SBI Bank Business Loan | 14% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| IndusInd Bank Business Loan | 16% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| SMFG Business Loan | 17% – 21% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| Bank of Baroda Business Loan | 17% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| HDFC Business Loan | 14% – 18% p.a. | 1-4 years | Up to 2% of loan amount |
| ICICI Bank Business Loan | 16% – 18% p.a. | 1-4 years | Up to 2% of loan amount |
| Axis Bank Business Loan | 15% – 18% p.a. | 1-4 years | Up to 2% of loan amount |
| Standard Chartered Bank Business Loan | 15% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| Deutsche Bank Business Loan | 16% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| Kotak Mahindra Bank Business Loan | 15% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| RBL Bank Business Loan | 15% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| IDFC First Bank Business Loan | 15% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| Aditya Birla Finance Ltd Business Loan | 17%-18% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| Yes Bank Business Loan | 16% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| Tata Capital Business Loan | 16% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| Hero Fincorp Ltd Business Loan | 16% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| Bajaj Finserv Business Loan | 16% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| NeoGrowth Business Loan | 16% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| U Gro Business Loan | 16% p.a. onwards | 1-4 years | Up to 2% of loan amount |
Business Loan EMI Calculator
Applicants can use the Business Loan EMI Calculator given below to calculate the EMIs and total interest cost payable the loan tenure depending on the interest rate, loan amount and loan tenure offered by the lender.
Eligibility Criteria for Business Loans
The eligibility criteria for a business loan in Bangalore are as follows:
| Particulars | Requirements |
|---|---|
| Age (It may vary across lenders) |
|
| Minimum Business Vintage | 3 years (There may be some lenders who can consider up to 2 years of business vintage as well). |
| Minimum Business Turnover | Rs 70 Lakhs |
| Credit Score | 750 or above |
| Minimum Income | Rs 1 Lakh p.a. |
| Eligible Entities | MSMEs, Proprietors, Limited Liability Partnership firms, Private Limited Companies, Public Limited Companies, Self-employed individuals or professionals, individual corporations, etc. |
Documents required for a Business Loan
The required documents for a Business Loan in Bangalore can vary based on the type of business loan. Below mentioned are the following documents, banks and NBFCs generally ask for a business loan:
| Particulars | Requirements |
|---|---|
| KYC Documents |
|
| Business-Related Documents |
|
| Financial Documents |
|
| Other Important Documents |
|
Types of Business Loans
There are various types of Business Loans offered in Bangalore, 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. |
| 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. |
Purpose of Business Loans
The most common reasons for taking out a business loan Include:
- When you feel your business is thriving, seizing the opportunity to acquire land or lease space for expanding your cotton textile venture is something you shouldn’t miss. Availability of a business loan in Bangalore at this stage is crucial.
- Often, small businesses like IT firms face a shortage of working capital for daily operations. They resort to short-term business loans in Bangalore until their assets generate sufficient income to cover operational expenses.
- For a Bio-Technology business seeking a substantial loan, maintaining a solid credit history is crucial. Owners often opt for short-term loans, ensuring timely repayments to enhance their creditworthiness and build a positive credit history.
How to apply for Business loans in Bangalore through OneNDF
When applying for a business loan at OneNDF, you won’t face the tedious paperwork or undergo a prolonged, time-consuming process. Follow the steps outlined below to submit your application now:
Step 1: Visit the official OneNDF site and either create an account or sign in.
Step 2: Register for the funds with your mobile number and establish a one-time password.
Step 3: Submit the required financial or identification documents.
Step 4: Complete the application form for the business loan.
Step 5: Through OneNDF, you will engage with multiple lenders who are prepared to provide appealing rates on their business loan choices.
OneNDF is a robust platform for developing credit profiles with more than 120 lenders and Rs 3,000 crores in loans disbursed, providing both businesses and individuals with essential insights and advisory services to enhance their financial standing, thus enabling smoother access to funding under premium conditions and customized loan solutions.
FAQs
Are there any small business loan in Bangalore exclusively provided to women entrepreneurs?
Yes, there are business loans for women who want to start small businesses. You can check various business loan schemes, like ICICI Bank, Self Help Group, Cent Kalyani – Central Bank of India, etc.
Can I get a loan for a new business for Automobiles in Bangalore?
Yes, you can avail a working capital loan or a term loan for a new business.
How can I get a business loan for Chemical factory in Bangalore?
You can apply for a business loan online through OneNDF, which ensures that you do not have to physically fill out an application form by going to a bank or NBFC.
How can Biotechnology businesses apply for a business loan in Bangalore through OneNDF?
Businesses can apply for a loan on the official OneNDF website by registering, authenticating their identity through OTP, uploading necessary documents, and submitting an online application. The platform then connects them with suitable lenders for competitive interest rates.
What documents are required for a working capital loan in Bangalore?
Commonly sought documents include KYC documents for the owner and the business, financials like ITR, audited balance sheets, bank statements, and proof of ownership or collateral documents for secured loans.
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