Business Loan in Vijayawada


Unlike other loans, the health of the business is a more important criteria in determining the eligibility for business loan than the financial health of the applicant. The business should have been profitable for the last few financial years, and most banks usually prefer to offer a business loan to a business which has been profitable for the last three years. The overall business volume, referred to as the annual turnover, should have been increasing for the last few years. These figures would be assessed by the bank by seeing the annual financial statements like balance sheet and profit and loss statement, which should have been audited by a registered chartered accountant.

Bank/NBFC Name Interest Rate Processing Fees
HDFC Bank 11.49% onwards Not exceeding 2.5% of loan amount sanctioned. Min. Rs. 1000, Max. Rs. 25,000
State Bank of India 12.55% onwards 1% to 3% of loan sanctioned
Axis Bank 15.50% to 24%  1.5% to 2% of loan sanctioned
Tata Capital 12.50% onwards Min. Rs. 999
ICICI Bank 11.49% onwards Not exceeding 2.5% of loan amt.
Bajaj Finserv 11.49% onwards 2.25% to 3% of loan sanctioned
Fullerton India 15% onwards Up to 5% of loan amount
Punjab National Bank 12.25% onwards Min. Rs. 270
IndusInd Bank 13% onwards Not more than 2.5% of loan amt.
Standard Chartered Bank 11.49% onwards Not more than 2.25% of loan amt.
RBL Bank 12% onwards Processing fees Rs. 1000

How Important Is Capital For A Business?

Capital is one of the most important elements of any business – whether a new one, or one that has been running for some time. Capital requirements could be of two types – money required to build assets for the business, and money required to maintain the ongoing expenses of the business. A business that is just starting off would need more of the fixed capital to set up things, and once the business gets going, the working capital would become more important to meet running costs.

What Is A Business Loan?

This is the reason most businesses need to apply for business loan sometime or the other. A bank loan for business could be given to two categories of people – the self-employed professionals (like doctors, architects etc.) and the self-employed nonprofessionals. Given the large number of technology startups nowadays, most banks have also designed specific bank loan for business startups as well.

What Are The Eligibility Conditions For Business Loans?

Before applying for a business loan, the promoter(s) of the business need to be aware of the basic requirements. These are some common parameters that influence business loan eligibility :

  • The business should be duly registered under a competent authority and the unique identifying elements (like GST number) should be obtained.
  • The business should have had submitted the financial statements like balance sheets and profit and loss accounts for at least a year, and preferably three years.
  • The directors or partners of the company should have valid id and address proofs.
  • The purpose of the loan should be clearly spelt out (whether it would be used to build assets for the company or for working capital requirements), and the company’s balance sheet should be able to evidence a strong capability of repayment.

What Other Factors Should An Eligible Applicant Consider?

Even after assessing the eligibility, there are several other business loan details that the business owner needs to work out. The correct list of documents required for business loan must be understood and documents got ready accordingly. After this the business loan interest rate must be understood and needs to be negotiated. Some business loans are given as term loans, in which the complete approved amount is disbursed at once and the business owner pays interest on it. Some loans are extended as lines of credit, of which the business owner can use only what he wants and interest is paid only on that amount. Finally the business owner needs to be clear about his monthly repayment schedule based on the type of loan he is going for and the interest rate that will be charged.

How Can One Finance Help You?

The owner or promoter of a business is the person who is responsible for every aspect of the business. When you need a business loan, you can’t afford to spend time doing all the due diligence necessary to select the best loan, or the paperwork involved. You need a trusted advisor who will be with you end to end in your quest for a business loan. We will select the best bank for you, get your paperwork completed and submitted on time, and work closely with the bank till the loan gets disbursed.

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