Business loans are most important for small businesses, all the getting loan for small business in India quite difficult. There are few requirements needs to be fulfilled in order to get funding for your small business. The first thing you need to do is calculating the estimate of the fund required for your small business. Banks are considered as one of the largest fund providers for the start-up small business in India. Bank will provide more than thousands of small businesses per year.
Before we start discussing how to get a loan for small business in India you need to know about the types of loan required by the owners. The first one is the term loan, which is required for purchasing machinery and equipment. And another one is working capital loan which is required for stocking inventory. So basically, the working capital loan is higher than the term loan provided by the banks.
Small Business Loan Providers in India 2019:
This is the list of Banks that provide the best loan for small business in India. Read the details about them before applying for your funding of the small business.
- ICICI Bank – Smart Business Loans:
ICICI bank is offering ₹ 25 Lakhs of unsecured overdraft facility for the existing Bank customers by providing them a smart business loan (SBL). The limit of the overdraft is starting from ₹ 1 Lakh to rupees 25 lacs. In return, customers need to say 5% of the utilized limit every month. The interest is charged on the outstanding amount of the funding.
- HDFC Bank – Business Loans:
HDFC Bank is offering various types of the business loan depending on the requirement of the small business owners. They are also offering doorstep service with easy documentation, and it is one of the quickest funding processes provided by this Bank. Even the charges and the rate of the loans are interesting enough to apply for small business funding. To apply for these business loans, your business needs to have the proper documentation of the profits you are having for 2 years.
- Kotak – Personalized Business Loans & Solutions:
You can easily expand your business without using your personal investments in the business. Kotak is also offering to give multiple funding’s for your business, which is one of the major reasons for choosing them. You can even pre-approved your future project, which will be funded by the bank and will provide you with personalized business loans and solutions. The loan is starting from ₹ 3 lacs to ₹ 75 lacs, along with flexible repayment solution provided by this bank. In order to know the details, you should visit the website or you can visit any branch of this Bank nearest to you.
- Bank of Baroda – Loans & Advances:
Various types of business loans are offered by Bank of Baroda, which will help the small business owners. They are offering term finance, working capital finance, microfinance, and even small and medium enterprises sector finance. Bank of Baroda is offering Baroda SME loan pack which is good for small business owners. They are offering their loan for interesting interest rates to the small business owners around India.
- State Bank of India – SME:
State Bank of India is one of the banks who are offering SME fundings for small business owners. They are offering lucrative scheme with collateral-free loans, you need to have the original investment in the plant and machinery up to ₹ 5 Crore, and the case of an original investment your equipment should be ₹ 2 crores. Before applying for a loan for small business in India in the State Bank of India, you should definitely know about all the details about financing and other banks are providing the finance to small business owners.
These are the 5 best ways to get loan for small business in India. There are also many other ways to get loan but according to us these 5 are the most preferred ways.