Apply for Business Loan in Chennai Online
Business Loan in Chennai
Chennai boasts a vibrant commercial landscape that has drawn many industries and international companies. In addition to its varied economy consisting of essential sectors such as information technology (IT), manufacturing, healthcare, and financial services, it also contains a significant automobile industry, which has led to its title “India’s Detroit.”
The city provides a conducive business atmosphere featuring multiple industrial areas and specific commercial districts. For such a prosperous business hub, there is always a demand for operational funds. A business loan in Chennai is the simplest method to meet this increasing demand.
Table of Contents
Interest rates and Charges on Business loans
The interest rates on Small Business Loans in Chennai can vary from lender to lender. However, here is an overview of the interest rates and charges on various types of business loans in Chennai:
| 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 a Business Loan
The eligibility criteria for a business loan in Chennai are as follows:
| Particulars | Requirements |
|---|---|
| Age (May vary across lenders) |
21 years at the time of loan application. 65 years at the time of loan maturity. |
| Minimum Business Vintage | 3 years (Some lenders may 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 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 |
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| Business-Related Documents |
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| Financial Documents |
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| Other Important Documents |
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Types of Business Loan
There are various types of Business Loans offered in Chennai, 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 Loan
Business loan in Chennai are used for different purposes by different types of businesses.
- Entrepreneurs and new businesses often need funds to start their ventures, which can be used for things like renting a space, buying equipment, and other startup expenses.
- Many businesses in Chennai also use loans to maintain their working capital, covering expenses like salaries, rent, utilities, and inventory.
- Established businesses that want to grow, open new branches, or introduce new products or services also rely on business loans.
- Some businesses in Chennai might take out loans to invest in marketing and advertising campaigns, such as digital marketing or traditional advertising, to increase brand visibility and attract more customers.
Overall, business loan in Chennai are a crucial tool for businesses at different stages, whether they are starting a new venture, expanding, or facing financial challenges.
How to Apply for Business Loan in Chennai through OneNDF
When seeking a business loan at OneNDF, you won’t encounter the exhausting paperwork process or endure a drawn-out, lengthy procedure. Proceed with the steps listed below to apply 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 creating credit profiles with over 120+ lenders and Rs 3,000 crores in loan disbursements, offering businesses and individuals valuable insights and advisory services to improve their financial status, thereby facilitating easier access to funding under top-tier conditions and tailored loan solutions.
FAQs
Which business is best in Chennai?
The tourism and travel industry presents a cost-effective business opportunity, especially in Chennai, which is known for its captivating attractions. Moreover, the city boasts a diverse range of clothing options, including luxurious silk and comfortable cotton, in addition to a plethora of designs and fabrics. Hence, venturing into the garment or clothing retail sector could be a viable and rewarding choice.
How to start doing business in Chennai or Tamil Nadu?
To establish a business in Tamil Nadu or Chennai, it is mandatory to obtain a Goods and Service Tax (GST) Registration. Once you have completed this registration process, you will be able to commence your business operations.
What are some business ideas that can be started in Chennai?
There are numerous exceptional business ventures that one can pursue, such as clothing, food business, IT services, digital marketing, consulting, coaching, and many others.
