Prime Choices: Exploring the Top 3 Banks for Business Loans

Introduction

Securing Funding Is Crucial To Ensure The Seamless Operation Of Any Business, Regardless Of Its Size ; whether It’s A Small, Medium, Or Large Enterprise. Funding Provides The Financial Foundation Necessary For Sustained Growth And Success. The Most Common Way For Funding Is Taking A Business Loan From A Bank.

A Business Loan Is A Type Of Financial Arrangement Where A Business Entity Borrows A Specific Amount Of Money From A Lending Institution, Such As A Bank Or A Financial Company With The Understanding That It Will Be Repaid Over Time With Certain Interest.

Topic : Top 3 Banks For Business Loan

In Other Words , We Can Say That A Business Loan Is Like When A Company Needs Money, So They Ask A Bank Or A Financial Company For Help. The Bank Gives Them A Certain Amount Of Money, And The Company Agrees To Pay It Back Gradually Over Time, Usually With A Bit Extra Called Interest. Basically The Business Entities Use These Loans To Help Pay For Things Like Getting Bigger, Buying Equipment, Managing Stuff They Need To Sell, Having Enough Money To Work With, Hiring New Workers, And Covering Different Costs Related To Running The Business.

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Overview of the Top 3 Banks For Business Loan In India

HDFC Bank Business Loan:

HDFC Bank is another big name in the Indian banking world, and they offer loans to help both small and big businesses.

ICICI Bank Business Loan:

ICICI Bank offers a wide variety of business loan options. They have different types of loans, such as term loans, working capital loans, and loans designed for specific industries.

State Bank of India (SBI) Business Loan:

SBI is a really largest bank in India, and they have different types of business loans that they design to fit different needs.

We’ll Discussed About These 3 Bank In This Article, That Are Known To Be The Top 3 Business Loans In India

HDFC BANK BUSINESS LOAN

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   Features and benefits

  • Age Should Be 21 – 65 Years To Apply For The Loan.
  • Self-Employed , Private Ltd. And Partnership Firms Involved In The Field Of Manufacturing, Trading & Services Can Apply For This Loan.
  • The Business Should Have A Minimum Turnover Of ₹ 40 Lakhs To Be Eligible For HDFC Loan.
  •  A Minimum Of 3 Years Of Total Business Experience Required To Be Eligible For This Loan.
  • The Business Should Have Been Making Profit From The Last Two Years.
  • Loan Without Collateral For New Business
  • To Qualify For HDFC Business Loan, Business Should Have A Minimal Annual Turnover (Itr) Of ₹ 1.5 Lakhs.
  • Interest Rate Of 10% – 22.50% p.a.
  • Comparatively Lower Than all bank business loan interest Rate.

Documents Required

Identity Proof: 

Any ID Card Issued By Government Like Aadhaar / Passport / Voter ID / PAN / DL

Address Proof: 

Aadhaar Card / Passport 

Income Proof: Last 6 months Bank statement / Recent ITR documents with details of income / Balance Sheet and Profit & Loss account of last 2 years

Business Documents: Proof of Continuation (ITR / Trade License / Establishment / Sales Tax Certificate / Other Authorized Business Licenses.

Application process

Here’s a step-by-step guide on how to apply for a business loan at HDFC:

1. Gather Your Documents 

Start By Collecting All The Necessary Documents For The Business Loan Application , As Mentioned Above.

2. Check Eligibility 

Visit HDFC’s official website or get in touch with their customer service to find out if you meet the eligibility criteria for their business loans.

3. Online Application

Go to HDFC’s official website and locate the “Business Loan” section. Fill out the online application form with accurate details about your business and financial situation.

4. Upload Documents

 You’ll need to upload the documents you gathered earlier according to the instructions in the application form.

5. Specify Loan Details

 Provide The Details Of The Amount Of Loan You’re Seeking And The Repayment Period You’re Comfortable With.

6. Review and Submit

Take Your Time To Review The Information You’ve Entered And Make Sure It’s Correct Before Submit The Application.

7. Await Approval

HDFC Will Carefully Review The Application And Documents You’ve Provided.

8. Loan Processing

If Your Application Is Approved, The Loan Processing Stage Begins. HDFC Will Verify The Documents And Assess Your Business’s Financial Health.

9. Loan Approval

If All Goes Well, You’ll Receive An Approval For The Loan Along With The Terms And Conditions.

10. Loan Disbursement

After You’ve Accepted The Terms, Hdfc Will Transfer The Loan Amount To Your Designated Bank Account.

However, It’s a good idea to reach out directly to HDFC or visit their official website to get the most accurate and current information.

ICICI BANK BUSINESS LOAN 

Features and benefits

  • Age Should Be 21 – 65 Years To Apply For The Loan.
  • Self-Employed , Private Ltd. And Partnership Firms Involved In The Field Of Manufacturing, Trading & Services Can Apply For This Loan.
  • The Business Should Have A Minimum Turnover Of ₹ 40 Lakhs To Be Eligible For ICICI Loan.
  •  A Minimum Of 3 Years Of Total Business Experience Required To Be Eligible For This Loan.
  • The Business Should Have Been Making Profit From The Last Two Years.
  • To Qualify For ICICI Business Loan, Business Should Have A Minimal Annual Turnover (Itr) Of ₹ 1.5 Lakhs.
  • Quick processing and disbursal of loans
  • Loan Without Collateral For New Business
  • Loan documentation at your location for ease and flexibility
  • Attractive interest rates and commission charges
    • For secured facilities: Up to Repo Rate +6.0 %(Non PSL)
    • For facilities backed by CGTMSE: Up to Repo Rate + 7.10%
  • Hassle-free renewals with minimum documentation
  • Processing Fees

Up to 2% (plus applicable taxes) of the facility amount

Documents Required

Application Form

All fields should be duly filled in and acknowledgement given to the customer.

Self-attested copy of KYC Documents

  • Entity proof – Partnership deed/Certificate of Incorporation/Shops and Establishment certificate
  • Copy of PAN Card of Entity, Proprietors /Partners/Directors, Security providers and guarantors
  • Address Proof of Entity, Proprietors/ Partners/Directors, Security providers and guarantors

Financials

  • Last Three Years Audited Or Provisional Financial Statements Like Balance Sheet, Profit And Loss Account, And Related Schedules. Also, Include Notes To Accounts, Tax Audit Reports, And The Statutory Audit Report.
  • If You’re Using Provisional Financials, Make Sure To Have The Vat Returns As Well.
  • Provide The Current Year’s Performance And The Expected Turnover On Your Company’s Letterhead.
  • For The Previous Year, Include The Income Tax Returns For The Borrowing Entity. If You Filed Them Online, Include The Acknowledgement Number Along With The Computation of Income.

Bank Statements (not more than 45 days old)

  • Latest Bank Statements for last 6 months (in case of First Time Borrower) and 12 months (in case of Takeover proposals). 

Application process

Gather Your Documents 

Start By Collecting All The Necessary Documents For The Business Loan Application , As Mentioned Above.

Online Application

Go to ICICI’s official website and locate the “Business Loan” section. Fill out the online application form with accurate details about your business and financial situation.

Upload Documents

 You’ll need to upload the documents you gathered earlier according to the instructions in the application form.

Specify Loan Details

 Provide The Details Of The Amount Of Loan You’re Seeking And The Repayment Period You’re Comfortable With.

Review and Submit

Take Your Time To Review The Information You’ve Entered And Make Sure It’s Correct Before Submit The Application.

Await Approval

ICICI Will Carefully Review The Application And Documents You’ve Provided.

Loan Processing

If Your Application Is Approved, The Loan Processing Stage Begins. ICICI Will Verify The Documents And Assess Your Business’s Financial Health.

Loan Approval

If All Goes Well, You’ll Receive An Approval For The Loan Along With The Terms And Conditions.

Loan Disbursement

After You’ve Accepted The Terms, ICICI Will Transfer The Loan Amount To Your Designated Bank Account.

However, It’s a good idea to reach out directly to ICICI or visit their official website to get the most accurate and current information.

State Bank of India (SBI) Business Loan

Features and benefits

  • Age Should Be 21 – 65 Years To Apply For The Loan.
  • Self-Employed , Private Ltd. And Partnership Firms Involved In The Field Of Manufacturing, Trading & Services Can Apply For This Loan.
  • The Business Should Have A Minimum Turnover Of ₹ 40 Lakhs To Be Eligible For SBI Loan.
  • Wide range of business loan options designed to suit various customers.
  • A Minimum Of 3 Years Of Total Business Experience Required To Be Eligible For This Loan.
  • The Business Should Have Been Making Profit From The Last Two Years.
  • To Qualify For SBI Business Loan, Business Should Have A Minimal Annual Turnover (Itr) Of ₹ 1.5 Lakhs.
  •  Loan Amounts, Starts From Rs 10,000 And Going Up To Rs 500 Crore, Depending On The Business’s Needs.
  • Loan Without Collateral For New Business
  • Business Loan Interest Rates SBI Has Low Interest Rates @11.30% p.a
  • SBI business Loan Application is a straightforward and quick process.
  • Repayment Period That Suits Your Needs, Whether It’s One Year For Working Capital Or As Long As 15 Years For Larger Monetary Loans.
  • Special Business Loan For Women – SBI Stree Shakti Yojana Loan Apply Online . ( Self-employment Loan For Ladies )

Documents Required 

The following documents are required for SBI Business Loans.

  • Duly Filled Application Form And Passport-sized Photographs
  • KYC Documents Like Pan Card, Passport, Aadhar Card, Driving License, Voter Id Card, And Utility Bills 
  • Last Year’s Bank Statement, Along With Itr Business Address Proof

Application process

 By The Following ways you can apply for the State Bank of India Business Loan.

Online :

  • You can apply online for Business Loan by filling out the online application form on their website. 
  • Their Business Loan representative will get in touch with you and assist you with the paperwork and the rest of the process.

Contact Customer Care

  • You can contact SBI customer service on their toll-free number to request a callback regarding the loan procedure.

Go to the Branch

  • You can also visit your nearest branch and apply for the SBI Business Loan offline.

Comparative Analysis

all bank business loan interest rate Has Given Below.

Top 3 Bank NameAll Bank Business Loan Interest RateLoan Processing FeesLoan Amount  & Repayment Period
HDFC10 % To 22.50 %Upto 2% Of Loan Amount 10,00000 – 5 Crore1 Year To 7 Years
ICICI11% To 16%Upto 2% Of Loan Amount10,00000 – 10 Crore1 Year To 7 Years
SBI11.3 % To 23 %1% – 5% of Loan Amount 10,000 – 500 Crore1 Year To 5 Years

Conclusion

   Selecting A Best Business Loan Depends Upon Various Factors As Discussed In This Article. It is Upto You To Decide Which Is Best For You As Per Your Needs. All 3 Of The Above Are Leading In The Market Since Years And Many Business Has Been Established With The Help Of Them , Now Its Your Turn To Establish Tour Business. 

Good Luck! 

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FAQs For Top 3 Banks For Business Loan :

Which Bank Offers Loan Without Collateral For New Business ?

Above Mentioned All The Top 3 Business Loan Offers loan without collateral for new business .

How To Apply For Self-employment Loan For Ladies ?

SBI Bank Has An Option For Self-employment Loan For Ladies .

What Are The Top 3 Banks For Business Loan In India ?

Top 3 Banks For Business Loan :
HDFC
ICICI
SBI.

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