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₹1000+ Cr disbursed across India · Trusted by 5000+ borrowers · 25+ banking partners
Updated August 2026

Business Loan up to Rs 500 Crore - Approved Faster with 100+ Lending Partners

Compare offers from PSU banks, private banks and NBFCs. Interest rates from 9.15% p.a. Digital application. Approval in 24 hours to 7 days. Zero fee to you.

RBI-Compliant DSA 25,000+ Businesses Funded 4.7/5 Rated (2,847 Reviews)
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100+
Lending Partners
Rs 500 Cr
Max Loan Amount
9.15%
Starting Interest Rate
24 Hrs
Fastest Approval
25,000+
Businesses Funded
The Basics

What is a Business Loan?

A business loan is credit extended to a business - proprietor, partnership, LLP or company - to fund working capital, expansion, machinery, inventory, or any legitimate business expense. In India, business loans are offered by public-sector banks, private banks, NBFCs and digital-first fintech lenders across ticket sizes ranging from Rs 50,000 (Mudra micro-loans) to Rs 500 crore (large corporate loans).

Every profitable Indian business - whether a Kirana store planning to expand, a manufacturer buying a new CNC machine, an exporter needing packing credit, or a startup fulfilling a large order - benefits from access to structured credit. The right business loan does more than just fund an expense; it accelerates growth, smooths cash-flow gaps, and lets you capture opportunities that would otherwise be lost.

MahadevX Fintech is a licensed loan Direct Selling Agent (DSA) working with 100+ RBI-regulated lenders. We do not lend directly - we match your business profile to the best-fit lender, negotiate rates, and coordinate end-to-end till the money is in your account. Our service is completely free for you - lenders pay us a commission on successful disbursals.

33 Loan Types

Types of Business Loans in India

Not all business loans are the same. Choosing the right type is often more important than choosing the lender. Below are 33 specialised business loan products - each designed for a specific business need.

MSME Loan Startup Loan Working Capital Loan Machinery Loan Manufacturing Loan Invoice Financing Bill Discounting Overdraft Facility Cash Credit Project Finance Equipment Finance Vendor Finance Supply Chain Finance Trade Finance Business Expansion Loan Loan Against Property for Business Unsecured Business Loan Secured Business Loan Term Loan OD Against FD Commercial Vehicle Loan Warehouse Finance Dealer Finance Franchise Loan Ecommerce Seller Loan Professional Loan Doctor Loan CA Loan Architect Loan Women Entrepreneur Loan Mudra Loan CGTMSE Loan Government Business Loan Schemes

Not sure which type fits your need? Our advisor helps you decide in a 10-minute call. Call +91 98710 01985.

Eligibility

Business Loan Eligibility Criteria

Eligibility criteria vary by lender and product. Here are the standard benchmarks - meeting these makes your application much smoother.

Business Vintage

Most private banks require 3 years of business vintage. PSU banks accept 2 years. NBFCs are flexible - some accept 1 year for GST-registered businesses. Startup products need no vintage.

Annual Turnover

Rs 40 lakh - Rs 1 crore minimum for private-bank unsecured loans. NBFCs accept Rs 20 lakh+. Government MSME schemes have no turnover floor.

CIBIL Score

Applicant CIBIL of 700+ preferred by banks; 650+ acceptable for NBFCs; 600+ possible with secured products or government schemes.

Age of Promoter

21 to 65 years typically. Some lenders extend to 70 with a co-applicant. LLP and Pvt Ltd companies have no upper age limit for the entity.

ITR + Financials

2 years of ITR filed. Audited financials for partnerships / companies. GST registration + 12 months returns for GST-linked assessment.

Banking Behaviour

Clean 12-month current-account statement (no cheque bounces, minimum balance maintained, healthy transaction volume matching declared turnover).

Business Structure

Proprietor, Partnership, LLP, Private Limited, Public Limited, One Person Company - all constitutions eligible. Registered under Udyam / Shop Act / Trade License.

Business Location

Pan-India coverage. Metro + Tier-1 cities have the most lender options. Tier-2 and Tier-3 cities served via PSU banks + specialised NBFCs.

Documents

Documents Required for a Business Loan

The exact list varies by lender and product, but the following covers 95% of the requirement. Keep these ready - it accelerates your application significantly.

KYC Documents (all applicants)
PAN card and Aadhaar of the proprietor / all partners / all directors. Recent passport-size photograph. Voter ID or Driving Licence as additional identity proof (some lenders).
Business Registration & Address Proof
Business PAN (if separate). GST Registration Certificate. Udyam / MSME registration (highly recommended). Shop & Establishment Act License. Trade License. Registered office address proof - rent agreement + owner NOC (if rented) OR electricity bill / property tax receipt (if owned).
Financial Documents
Latest 2 years Income Tax Returns (ITR) with computation. Audited financial statements (Profit & Loss + Balance Sheet) for the last 2 years - mandatory for partnerships and companies. 12 months primary current-account statements (some lenders accept 6 months for smaller loans). Latest 12 months GST returns (GSTR-1 and GSTR-3B).
Constitution Documents (based on business type)
Proprietor: No additional constitution document needed.
Partnership: Registered Partnership Deed.
LLP: Certificate of Incorporation, LLP Agreement.
Private Limited / Public Limited: Certificate of Incorporation, Memorandum of Association (MOA), Articles of Association (AOA), Board Resolution authorising the loan.
Collateral Documents (for secured loans only)
Property papers - title deed, chain of ownership, latest tax receipt, encumbrance certificate. Machinery / equipment invoices and hypothecation papers. Fixed Deposit receipt (for OD Against FD). Legal opinion and valuation reports arranged by the lender.
Additional Documents (case-specific)
Existing loan details (bank name, outstanding, EMI, tenure) if you have running loans. Sales orders / purchase orders (for working capital limits). Project report + DPR (for project finance). Import-export licence (for trade finance). Franchise agreement (for franchise loans).
Interest Rates

Business Loan Interest Rates in India (August 2026)

Actual rate depends on your business profile, CIBIL, collateral and product. Table below shows starting-from rates by lender category. All rates are per annum.

Lender CategoryInterest Rate (p.a.)Processing FeeMax Loan AmountTenure
PSU Banks (SBI, PNB, BoB)9.15% - 15.90%0.5% - 1%Rs 500 CrUp to 84 months
Private Banks (HDFC, ICICI, Axis, Kotak)10.75% - 22.75%1% - 2%Rs 2 Cr (unsecured)Up to 60 months
Top NBFCs (Bajaj, Tata Capital, Aditya Birla)12.00% - 26.00%2% - 3%Rs 75 Lakh (unsecured)Up to 60 months
Digital NBFCs (DMI, Lendingkart, Indifi)14.00% - 28.00%2% - 4%Rs 30 LakhUp to 36 months
MSME Schemes (Mudra, CGTMSE, PMEGP)8.15% - 14.00%Nil - 0.5%Rs 5 CrUp to 84 months
LAP / Secured9.00% - 14.00%0.5% - 1.5%Rs 25 CrUp to 180 months

Rates are indicative and subject to change based on RBI Repo Rate movements, lender policy and your credit profile. Confirm with our RM for a live quote.

Fees & Charges

Processing Fees and Other Charges

Transparency is non-negotiable. Here is a complete breakdown of what you might pay - besides interest - across the lifecycle of a business loan.

Processing Fee

0.5% to 3% of the sanctioned loan amount + 18% GST. PSU banks lowest, digital NBFCs highest.

Documentation

Rs 500 - Rs 2,500 flat, or nil at PSU banks. Covers legal drafting, stamping, franking.

Loan Insurance

Optional but sometimes bundled - 0.5% to 1.5% of loan amount for group credit-life cover.

Foreclosure Charges

2%-5% for unsecured loans in initial years. Nil for floating-rate secured loans (RBI mandated). Nil for OD/CC.

Late Payment Charges

2%-3% per month on the overdue EMI, plus cheque-bounce charges if applicable. Impacts CIBIL heavily.

Prepayment Charges

2%-4% on part-prepayment for unsecured loans. Usually waived after 24 months. Nil for floating-rate secured.

Stamp Duty

Varies by state - typically Rs 100 - Rs 5,000 depending on loan agreement value.

Valuation Fee (secured)

Rs 3,000 - Rs 15,000 depending on collateral value. Paid to lender-empanelled valuers.

Legal Opinion (LAP)

Rs 5,000 - Rs 25,000 for lawyer verification of title chain. Higher for commercial property.

Why Apply via MahadevX

Powerful Features & Benefits

MahadevX exists to make business borrowing simple, transparent and fast. Here is what you get - every time you apply through us.

Instant Eligibility Check

Get a real-time eligibility indication before you formally apply.

Amounts Rs 50k to Rs 500 Cr

From micro-MSME to large corporate - one desk, all sizes.

Approval in 24-72 Hours

Digital-first lenders can approve unsecured loans within a day.

Disbursal in 3-7 Days

Post-approval, funds hit your business bank account fast.

Collateral or Unsecured

Choose secured or unsecured based on your tenure and cost preference.

Compare 20+ Offers

One application unlocks parallel offers from PSU banks, private banks and NBFCs.

Rates from 9.15%

Starting from PSU bank rates - actual rate depends on profile and product.

Tenure Up to 84 Months

Longer tenures for term loans; on-demand for working capital.

Minimal Paperwork

Digital KYC, video-verification, and e-sign wherever the lender supports it.

Dedicated Loan Advisor

A relationship manager guides you from application to disbursal.

Prepayment Flexibility

Foreclose or part-prepay after the lender's lock-in period.

Bank-Grade Security

Data encrypted end-to-end. We are a licensed loan DSA - your data is never sold.

Human Support

Call, WhatsApp, or email - our team responds within business hours.

Transparent Fees

All charges disclosed upfront - processing, foreclosure, penal.

Pan-India Coverage

From metros to Tier-3 cities - lender network across India.

Proprietor to Pvt Ltd

Suitable for any business constitution: proprietor, partnership, LLP, Pvt Ltd, Public Ltd.

Turnover-Linked Limits

Higher revenue - higher credit limits - our team optimises for you.

Fast Track for MSMEs

MSME certificate gets you into government-scheme streams (Mudra, CGTMSE).

CIBIL Improvement Tips

We share strategies to improve your CIBIL score for better rates.

Top-Up Loans Available

Existing borrower with good repayment - unlock top-up without fresh application.

GST-Based Assessment

Recent GST returns can qualify you even with limited traditional documentation.

No Hidden Charges

You see every rupee before you sign - we double-check with the lender.

Partner Bank Relationships

Direct empanelment with Bajaj, Poonawalla, L&T, IDFC First and more.

Free EMI Calculator

Model any scenario before applying - amount, rate, tenure.

Balance Transfer Assist

Move an expensive existing loan to a cheaper lender - we handle paperwork.

Priority Sector Access

MSME loans qualify under RBI PSL - PSU banks offer preferential rates.

SLA-Backed Response

24-hour first response guarantee on every enquiry.

RBI-Compliant Process

Fair Practices Code compliance - no coercion, no hidden clauses.

Flexible EMI Options

Structured EMIs for seasonal businesses - moratoria for startup phase.

Purpose-Built Products

Different loan structures for different needs - not one-size-fits-all.

Renewals Simplified

Working capital renewals with minimal fresh documentation.

Online Everything

Apply, upload docs, e-sign, and track - all from your phone.

Calculator

Business Loan EMI Calculator

Model any scenario before applying. Adjust amount, rate and tenure - see EMI, total interest and total payment instantly.

Loan AmountRs 25,00,000
Rs 1 LRs 10 Cr
Interest Rate (p.a.)14.00%
8%24%
Tenure (months)36 months
12 mo84 mo
Monthly EMI
Rs 85,432
Total Interest
Rs 5,75,552
Total Payment
Rs 30,75,552
Apply for This Amount →
Suggestion E: Side-by-Side

Compare 5 Lenders Side-by-Side

Pick any 5 lenders below - see interest rate, max amount and specialisation side-by-side. Real-time comparison to help you decide.

Feature-----
Interest Rate-----
Max Loan Amount-----
Best Known For-----
Lending Network

Top Business Loan Lending Partners

MahadevX partners with 100+ RBI-regulated banks and NBFCs. Below are the top-tier lenders categorised - PSU banks for lowest rates, private banks for speed, NBFCs for flexibility.

Top 3 Public Sector Banks (PSUs) Lowest Rates

PSU banks lead on rate - starting from 9.15%. Best fit for MSMEs with Udyam, government-scheme borrowers (Mudra, CGTMSE), and secured loans against property.

State Bank of India
MSME, Corporate, Working Capital, CGTMSE
Rate: 9.15% - 15.65%Max: Rs 500 Cr
Punjab National Bank
MSME & Manufacturing Loans
Rate: 9.50% - 16.20%Max: Rs 100 Cr
Bank of Baroda
Business Expansion & OD/CC
Rate: 9.35% - 15.90%Max: Rs 150 Cr

Top 6 Private Banks Fastest Approval

Private banks lead on speed - approval in 3-7 days. Best fit for unsecured business loans up to Rs 2 Cr, tech-enabled businesses, and existing bank customers.

HDFC Bank
Unsecured Business Loans
Rate: 10.75% - 22.50%Max: Rs 50 Lakh
ICICI Bank
MSME & Digital Lending
Rate: 11.00% - 22.00%Max: Rs 2 Cr
Axis Bank
Working Capital & Term Loans
Rate: 10.75% - 22.00%Max: Rs 75 Lakh
Kotak Mahindra Bank
SME Finance
Rate: 11.00% - 22.50%Max: Rs 1 Cr
IndusInd Bank
Business Banking
Rate: 11.50% - 22.75%Max: Rs 50 Lakh
IDFC FIRST Bank
MSME & Supply Chain Finance
Rate: 11.25% - 22.00%Max: Rs 1 Cr

Top 11 NBFCs Most Flexible

NBFCs are the most flexible - accept newer businesses, smaller turnover, imperfect CIBIL. Rates slightly higher but approval and disbursal can be within 48 hours.

Bajaj Finance
MSME & Unsecured Business Loans
Rate: 13.00% - 26.00%Max: Rs 55 Lakh
Tata Capital
Business Expansion & Working Capital
Rate: 12.00% - 24.00%Max: Rs 75 Lakh
Aditya Birla Finance
SME & Corporate Lending
Rate: 13.00% - 25.00%Max: Rs 50 Lakh
DMI Finance
Digital Business Loans
Rate: 14.00% - 26.00%Max: Rs 30 Lakh
Poonawalla Fincorp
MSME Finance
Rate: 12.99% - 26.00%Max: Rs 50 Lakh
L&T Finance
SME & Commercial Finance
Rate: 13.00% - 24.00%Max: Rs 75 Lakh
IIFL Finance
Business & Working Capital Loans
Rate: 13.50% - 26.50%Max: Rs 30 Lakh
Piramal Finance
SME & Mid-Market Lending
Rate: 13.00% - 24.00%Max: Rs 1 Cr
Shriram Finance
MSME & Commercial Finance
Rate: 14.00% - 26.00%Max: Rs 25 Lakh
UGRO Capital
MSME Sector-Specialised Lending
Rate: 13.50% - 25.00%Max: Rs 50 Lakh
Cholamandalam Finance
MSME & Vehicle-Backed Finance
Rate: 13.00% - 25.00%Max: Rs 40 Lakh
By Industry

Business Loans by Industry

Every industry has its own cash-flow rhythm, credit-cycle, and lender preference. Our RMs specialise in industry-specific loan structuring.

Manufacturing

Machinery, working capital, and factory expansion finance.

Retail

Store expansion, inventory finance, POS credit.

Trading

Cash-credit limits and invoice discounting for traders.

Restaurant & F&B

Kitchen equipment, franchise fees, working capital.

Medical & Clinics

Equipment finance and clinic expansion for doctors.

Pharmacy

Inventory finance and multi-store expansion loans.

Education

Institution setup, campus expansion, capex loans.

Transport & Logistics

Fleet finance, warehouse loans, working capital.

IT & Tech

Bench funding, project finance, working capital.

Exporter

Packing credit, post-shipment credit, LC discounting.

Importer

Import LC, buyer's credit, foreign currency loans.

Construction

Project finance, equipment loans, contractor working capital.

Real Estate

LAP for developers and project loan structuring.

Startup

Revenue-based finance, venture debt, seed loans.

Women Entrepreneurs

Special-scheme rates and government-linked support.

Professionals

Doctor, CA, architect, lawyer - profession-specific loans.
Process

Business Loan Application Process

Simple, transparent and fast. From your first call to funds in your account - here is exactly how it works.

1

Fill Eligibility Form

4 fields - name, mobile, amount, turnover. Takes 30 seconds.

2

Expert Call in 30 mins

Our RM calls you, understands your business, and pre-qualifies you.

3

Submit Documents

Upload PAN, GST, bank statements online. We verify + package.

4

Parallel Applications

We submit to 2-3 best-fit lenders in parallel. Soft-pull first.

5

Compare Sanction Offers

You review offers from each lender. Pick the best one.

6

E-Sign & Disbursal

Sign digitally. Funds in your account within 3-7 days.

Why Us

Why Choose MahadevX Fintech for Your Business Loan

You could apply directly to a lender. Or you could go through MahadevX and unlock 100+ options at once. Here is why 25,000+ businesses chose us.

Best-Fit Lender Matching

We do not blindly submit to whoever will approve you. We match your profile to the lender who will give you the best rate + terms.

Zero Fee to You

Free service. We are paid by the lender only on successful disbursal. Your interest rate is unchanged whether you apply through us or direct.

SLA-Backed Response

24-hour first response guaranteed on every enquiry. Real humans - not chatbots - handle your file.

Data Never Sold

Your business and personal data is shared only with lenders you approve. Bank-grade encryption end-to-end.

Dedicated RM Per Deal

One relationship manager owns your file end-to-end. You always know who to call.

Balance Transfer Too

Existing high-interest business loan? We handle end-to-end balance transfer + top-up. Typical savings: 2%-5% on rate.

110+ Questions Answered

Business Loan - Frequently Asked Questions

Everything you might want to know about business loans in India. Organised by category. Search or scroll.

What is a business loan?
A business loan is credit extended to a business entity - proprietor, partnership, LLP or company - to meet business expenses like working capital, equipment purchase, expansion, or short-term cash flow gaps. It differs from personal loans in eligibility criteria, tenure and typical amounts.
Who can apply for a business loan?
Any business established for at least 6 months to 3 years (varies by lender) with documented revenue can apply. This includes proprietors, partnerships, LLPs, private limited and public limited companies. Startups without revenue can access special startup loan products.
What is the maximum business loan amount available in India?
Unsecured business loans typically go up to Rs 75 lakh from private banks and Rs 55 lakh from NBFCs. Secured loans against property (LAP) or projects can go up to Rs 500 crore from PSU banks. MahadevX partners across the full spectrum.
How is a business loan different from a personal loan?
A business loan requires business documents (GST, ITR, bank statements) and evaluates business cash flow. A personal loan uses personal income and CIBIL. Business loans typically have higher amounts, longer tenures, and business-purpose end-use restrictions. Interest on business loans is often tax-deductible.
Can a startup get a business loan without revenue?
Yes - through Mudra Loan (up to Rs 20 lakh), CGTMSE (up to Rs 5 crore with government guarantee), Stand-Up India (Rs 10 lakh - Rs 1 crore), or specialised startup lenders. Revenue-based financing is also available for early-revenue startups.
How long does business loan approval take?
Unsecured NBFC loans: 24-72 hours for approval, 3-5 days for disbursal. Bank unsecured: 3-7 days approval, 5-10 days disbursal. Secured LAP: 15-30 days end-to-end. MahadevX pre-screens your application to route it to fastest-fit lender.
Is a business loan a good idea for expanding my business?
A business loan makes sense when the expected return on the funded activity clearly exceeds the loan cost. For example, if a Rs 30 lakh working capital loan at 14% helps you fulfil orders that generate 25%+ margin, it is a positive ROI decision. Consult with our advisor to model your specific scenario.
Are business loans tax-deductible?
The interest paid on a business loan is generally deductible as a business expense under Section 37(1) of the Income Tax Act, provided the loan is used for legitimate business purposes. The principal repayment is NOT deductible. Always consult a CA for your specific case.
What is the difference between secured and unsecured business loans?
Unsecured business loans have no collateral - approved on your business cash-flow and credit profile. Interest rates are higher (11%-26%) but faster to disburse. Secured loans require collateral (property, FD, machinery) - offer lower rates (9%-15%), higher amounts, longer tenure.
Does MahadevX charge any fee to apply?
No. Applying via MahadevX is completely free. We are a Loan DSA - we earn a commission from the lender when a loan is disbursed. You pay only the lender's standard charges (processing fee, GST) - never any charge to us.
What is the minimum business vintage required for a business loan?
Most private banks require 3 years of business vintage. PSU banks may accept 2 years. NBFCs are more flexible - some accept 1 year for GST-registered businesses. Startup-specific products need no vintage.
What is the minimum turnover requirement for a business loan?
For unsecured loans: Rs 40 lakh - Rs 1 crore annual turnover minimum from most private banks. NBFCs accept Rs 20 lakh+. For MSME government-scheme loans, there is no turnover floor - just documented business activity.
What CIBIL score is needed for a business loan?
Applicant CIBIL of 700+ preferred by banks; 650+ acceptable for NBFCs; 600+ possible with secured products or government schemes. Company CIBIL Commercial Score of 60+ (out of 100) also matters for larger loans.
What documents are required for a business loan?
Standard set: PAN + Aadhaar of proprietors/directors, business PAN, GST registration, 6-12 months bank statements, 2 years ITR + audited financials, address proof of business, and constitution documents (partnership deed / MOA / AOA).
Do I need to submit ITR for a business loan?
For unsecured business loans above Rs 10 lakh - yes, most lenders ask for 2 years of ITR. GST-only-based products from NBFCs waive this for small ticket sizes. For amounts below Rs 5 lakh, some lenders accept bank statements alone.
Can I apply for a business loan without GST?
Yes, but options narrow. Sub-Rs 10 lakh MSME loans (Mudra), unsecured Rs 5 lakh loans from select NBFCs, and secured LAP loans do not mandate GST. However, GST-registered businesses get faster, larger, cheaper credit.
Can a new business get a business loan?
Yes - via Mudra Shishu (up to Rs 50k, no vintage), Mudra Kishore (Rs 50k-5 lakh), Stand-Up India, or startup-specific NBFC products. Traditional business loans need 6-24 months of operating history.
What are the age criteria for business loan applicants?
Applicant should be 21-65 years typically. Company/LLP itself has no age but the promoters' ages matter. Some lenders extend to 70 with co-applicant.
Does my business type affect eligibility?
Yes - traditional professions (doctor, CA), manufacturing, and GST-registered trading get the best rates. Cash-heavy businesses (some retail) need stronger bank statements. Restricted sectors (arms, tobacco, some export categories) face limits.
Can I get a business loan with a low CIBIL score?
Below-600 CIBIL narrows options but does not eliminate them. Secured LAP, gold-backed loans, or joint applications with a high-CIBIL co-applicant are paths. Improving CIBIL for 3-6 months before applying often unlocks 3-5% lower rates.
What if my business had a loss last year?
One year of loss is manageable with a good explanation and recovering trend. Multiple consecutive losses hurt. Some lenders focus on gross revenue and cash flow rather than net profit for MSME loans.
Are there business loans for women entrepreneurs?
Yes - Stree Shakti (SBI), Mudra Women, Cent Kalyani (Central Bank), Dena Shakti - offer preferential rates (0.25%-1% lower) and higher limits. State-specific schemes also available (e.g., Bhartiya Mahila Bank products).
Can NRIs apply for a business loan for Indian business?
NRIs can apply as co-applicants or guarantors for an India-registered business. As sole applicant, options are limited - typically NRO-account-backed OD facilities. Business ownership rules (FDI norms) apply.
Do I need a business plan to apply?
For traditional unsecured business loans - no formal business plan is needed. Just documents. For startup / project finance / larger term loans - yes, lenders want a business plan, projections, and use-of-funds clarity.
Can I be self-employed and apply for a business loan?
Yes. Self-employed individuals (proprietors, consultants, doctors, CAs, architects) are eligible if they have documented income (ITR + bank statements). Formal registration (Udyam, GST, professional council) helps.
What documents does a proprietor need for a business loan?
PAN + Aadhaar of proprietor, business PAN (or single PAN if proprietor), Udyam / GST / Shop Act registration, 12 months current-account statement, 2 years ITR, address proof of business.
What documents do partnership firms need?
Firm PAN, Partnership Deed, all partners' PAN + Aadhaar, GST, 12 months bank statement, 2 years ITR of firm + partners, audited financials, address proof.
What documents do private limited companies need?
Company PAN, MOA + AOA, Certificate of Incorporation, GST, all directors' KYC, 12 months bank statement, 2 years audited financials, ITR, board resolution authorising the loan.
How many months of bank statements are required?
Standard: 6-12 months of primary current-account statements. Larger loans and lower-CIBIL applicants may need 24 months. Digitally-submitted statements (via account aggregator) speed things up.
Do I need to submit audited financials?
For proprietors below Rs 1 crore turnover: not always. For partnerships / companies with any material amount: yes. LAP or unsecured loans above Rs 25 lakh typically require audited statements.
What address proof of business is accepted?
Rent agreement + owner NOC (if rented), electricity bill / property tax receipt (if owned), or Municipal Trade License. GST registration certificate also serves as business address proof.
Are digital documents accepted?
Yes - most lenders accept PDF uploads. Scanned copies must be clear and self-attested (signed on the copy). E-verified ITR, Digilocker Aadhaar, and account-aggregator-fetched bank statements are widely accepted.
What is Udyam registration and is it required?
Udyam is the free government registration that certifies a business as MSME. It unlocks priority-sector interest rates, government-scheme access (Mudra, CGTMSE), and preferential PSU bank treatment. Not mandatory for private-bank loans but strongly recommended.
How do I improve my document readiness?
Keep 12 months of current-account statements clean (avoid bounces), file GST regularly, get audited financials on time, maintain Udyam / trade licences updated, and ensure your CIBIL commercial score is healthy.
What if a document is missing or old?
Talk to your MahadevX advisor - we help identify which lenders are flexible on the specific gap. For example, some accept a 6-month bank statement in lieu of 12 for early-stage GST-filers.
What is the interest rate on a business loan in India?
Business loan interest rates in India range from 9.15% per annum (PSU banks, secured loans) to 26% per annum (unsecured NBFC loans for high-risk profiles). Average unsecured business loan rate: 14%-18% per annum.
What factors affect my business loan interest rate?
Business vintage, revenue and profit trend, CIBIL (both personal and commercial), banking behaviour, industry, loan type (secured vs unsecured), tenure, existing relationship with the lender, and current market repo rate.
Are business loan rates fixed or floating?
Both are available. Term loans and unsecured business loans are typically fixed. LAP and long-tenure business loans are usually floating (linked to Repo Rate or MCLR). Working capital limits are always variable, revised annually.
How can I get the lowest business loan interest rate?
Improve CIBIL to 750+, maintain 12 months of clean banking, have 3+ years of GST-filed business history, apply through multiple lenders in parallel (via MahadevX) to trigger competitive offers, prefer secured over unsecured, choose PSU bank if you qualify.
What is Repo Rate and how does it affect my business loan rate?
The Repo Rate is the rate at which the RBI lends to commercial banks. When RBI cuts Repo, floating-rate business loans get cheaper. Fixed-rate loans are unaffected. As of 2025, current Repo Rate is 6.50% (verify at time of application).
Are there any hidden charges in business loans?
Reputed lenders disclose all charges upfront: processing fee (0.5%-3%), documentation, insurance, stamping. MahadevX independently verifies the sanction letter to catch any surprise clauses before you sign.
What is the processing fee for a business loan?
Typically 0.5%-3% of the loan amount + GST. PSU banks are on the lower end (0.5%-1%), private banks 1%-2%, NBFCs 2%-3%. Some lenders waive processing fees during festive campaigns.
Can I negotiate the interest rate?
Yes - especially for larger loans (Rs 25 lakh+) or high-CIBIL applicants. Show competing offers from other lenders. MahadevX presents parallel offers so you can leverage the best.
What is the penalty for late EMI payment?
Typically 2%-3% per month on the overdue EMI amount, plus a cheque bounce charge if the auto-debit fails. This also negatively affects your CIBIL - so avoid at all costs.
Can I switch to a lower-interest loan later (balance transfer)?
Yes - if your existing loan has crossed the lock-in period (usually 6-12 months) and your CIBIL and business have improved. Balance-transfer typically saves 2%-5% on interest. We handle end-to-end BT.
What is the tenure for business loans in India?
Working capital / OD / CC: 12 months, renewable annually. Unsecured term loans: 12-60 months. Secured business loans / LAP: up to 15 years. Machinery / equipment loans: 3-7 years typically.
What is the EMI structure for business loans?
Standard Equated Monthly Instalment (EMI) - fixed monthly payment covering interest + principal. Some lenders offer moratorium (3-6 months) at start for capex loans. Bullet repayment is available for short-tenure trade finance.
Can I prepay or foreclose my business loan?
Yes, after the lock-in period (usually 6 months). Part-prepayment reduces tenure or EMI. Full foreclosure attracts 2%-4% charges for unsecured loans; often waived after 24 months. Floating-rate loans (LAP, working capital) can be foreclosed without penalty as per RBI rules.
What are the prepayment charges on business loans?
For unsecured: 3%-5% of outstanding principal in the first year, dropping to 2%-3% later. For secured floating-rate loans: nil (RBI mandated). For fixed-rate secured: 2%-4% typically.
Can I skip EMIs during a bad month?
Formally no - EMIs are contractual. But you can proactively request a "restructuring" if you foresee cash-flow issues. RBI-guidelines allow one restructuring event without immediate NPA classification. Contact your MahadevX RM early - dont default first.
What happens if I default on a business loan?
Late fees kick in immediately. After 90 days of non-payment, the loan is classified as NPA - CIBIL takes a major hit and legal recovery begins. Secured loans may see property attachment. We strongly advise talking to the lender early if trouble arises - most negotiate a restructuring.
Can I take a top-up on my existing business loan?
Yes - existing borrowers with good repayment (12+ months clean) can typically get a top-up of 20%-40% of the sanctioned amount. Often processed within a week with minimal fresh documentation.
What is a moratorium period?
A period at the start of the loan when you pay only interest (or nothing) - principal repayment starts later. Common for machinery loans (6-12 months) and startup loans (3-6 months). During moratorium, the lender still charges interest which is added to principal.
Can I change my EMI amount mid-tenure?
Yes - via part-prepayment (reduces EMI or tenure). Some lenders allow step-up EMI (increasing over time) for growth-stage businesses. Talk to your RM before formalising.
How does an OD / cash credit repayment differ from EMI?
Overdraft / cash credit is a limit, not an EMI-based loan. You pay interest only on the drawn amount. Principal is repaid whenever you have cash and re-drawable. Renewed annually with limit review.
What is an MSME loan?
A loan specifically for Micro, Small and Medium Enterprises registered under Udyam. MSME loans get priority-sector treatment, lower rates via CGTMSE guarantee, and access to government schemes (Mudra, Stand-Up India, PMEGP).
What is the Mudra Loan?
PM Mudra Yojana - collateral-free loans up to Rs 20 lakh (revised from Rs 10 lakh in 2024) for micro-enterprises. Three tiers: Shishu (up to Rs 50k), Kishore (Rs 50k-5 lakh), Tarun (Rs 5-20 lakh). Available at all PSU + most private banks.
What is CGTMSE?
Credit Guarantee Fund Trust for Micro and Small Enterprises - a government scheme that guarantees loans up to Rs 5 crore to MSMEs without collateral. Lenders take the risk with confidence - so you get funded without giving up assets.
What is working capital finance?
Short-term credit to fund day-to-day operations - inventory, receivables, payroll, utilities. Structures: Overdraft (OD), Cash Credit (CC), Working Capital Term Loan (WCTL), Invoice Financing, Bill Discounting. Renewed annually.
What is invoice financing?
You raise an invoice - the lender advances 70%-90% immediately - your buyer pays the lender directly on the due date. Great for solving cash-flow between order fulfilment and payment. Popular with B2B SMEs.
What is bill discounting?
Similar to invoice financing but tied to a formal Bill of Exchange (with buyer acceptance). Lower rates than pure invoice financing. Documented under the Negotiable Instruments Act.
What is machinery / equipment finance?
A term loan specifically for buying business equipment - machinery, computers, medical devices, vehicles. The equipment itself is often the collateral. Tenure 3-7 years. Rates typically 10%-16%.
What is a term loan?
A fixed-amount, fixed-tenure loan repaid via EMIs. Used for capex - property, machinery, expansion. Distinct from working capital, which is revolving.
What is project finance?
Large-ticket funding (Rs 10+ crore typically) for a specific project - factory, hotel, infrastructure. Repayment is tied to project cash flow. Requires detailed project report, DPR, and often consortium lending.
What is trade finance?
A basket of instruments for import-export businesses: Letters of Credit (LC), Bank Guarantees (BG), Buyer's Credit, Packing Credit, Post-Shipment Credit. Facilitates cross-border trade with reduced counterparty risk.
What is supply chain finance?
Multi-party financing where large corporates get their vendors' invoices paid early by the lender (vendors get quick cash, corporate keeps standard payment terms). Also called reverse factoring.
What is dealer finance?
A revolving credit line to authorised dealers (car, FMCG, electronics) to buy inventory from manufacturers. Repaid as dealers sell. Manufacturer often subsidises the interest.
What is a franchise loan?
A loan specifically for buying / setting up a franchise (F&B, retail, education). Uses franchise brand strength as a positive underwriting factor. Franchisors sometimes partner with specific lenders for streamlined loans.
What is a professional loan?
A specialised unsecured business loan for licensed professionals - doctors, CAs, architects, lawyers, consultants. Preferential rates (11%-16%) and higher amounts against professional income and credentials.
What is OD Against FD?
An overdraft facility where your Fixed Deposit is the collateral. You get 85%-90% of FD value as OD limit, at 1%-2% above the FD interest rate. FD keeps earning interest. Instant, no CIBIL check needed.
Which is the best bank for business loans in India?
There is no single "best" - it depends on your profile. SBI leads for large MSME and PSU pricing. HDFC and Axis excel at unsecured private-sector loans. Bajaj Finance leads NBFC unsecured. MahadevX matches your profile to the best-fit lender across our 100+ partners.
Which bank offers the lowest business loan interest rate?
PSU banks (SBI, PNB, BoB) offer the lowest rates - starting 9.15% - for secured business loans and government-scheme MSMEs. For unsecured, HDFC/Axis typically undercut NBFCs by 1%-3%.
How do I apply for an SBI Business Loan?
Via MahadevX - our SBI empanelment route - or directly at any SBI branch. SBI processes MSME Sahaj (up to Rs 1 crore) end-to-end digitally via YONO Business. Timeline: 5-15 working days for approval.
How is an HDFC Business Loan different from an SBI Business Loan?
HDFC: faster, unsecured, up to Rs 50 lakh, rates 10.75%+, minimal collateral. SBI: slower, higher amounts (up to Rs 500 crore), often collateral-backed, rates from 9.15%, MSME-focused. Choose based on speed vs cost.
Does Bajaj Finance offer business loans without collateral?
Yes - Bajaj Finance offers unsecured business loans up to Rs 55 lakh with only PAN, GST, ITR, and bank statements. Approval in 24-48 hours; disbursal in 4-7 days. Rates 13%-26% per annum.
What is Tata Capital Business Loan eligibility?
Tata Capital requires 3 years of business vintage, Rs 40 lakh+ turnover, 700+ CIBIL, and profitability in the last 2 years. Loans up to Rs 75 lakh unsecured; higher amounts with collateral.
Is ICICI Bank good for business loans?
ICICI Bank is strong for MSME, digital lending (InstaBIZ platform), and unsecured business loans up to Rs 2 crore. Fastest for existing ICICI current-account holders. Good for tech-forward SMEs.
Which NBFC offers the fastest business loan?
DMI Finance, Poonawalla Fincorp, and IIFL Finance are among the fastest - digital-first NBFCs approving in 4-24 hours and disbursing in 2-4 days. Higher rates but unmatched speed.
How to apply for a Kotak Business Loan?
Kotak accepts online applications on their business banking portal. Preferred for Rs 5 lakh - Rs 1 crore unsecured loans. Kotak requires 3-year vintage, Rs 40 lakh turnover, 700+ CIBIL. Faster for Kotak current-account holders.
What is IDFC First Bank's Business Loan specialty?
IDFC First is strong for supply-chain finance and MSME loans. Their unsecured product goes up to Rs 1 crore with digital verification. Preferred for GST-registered manufacturers and traders.
What are the top government business loan schemes in India?
PM Mudra Yojana (up to Rs 20 lakh, collateral-free), Stand-Up India (Rs 10 lakh - Rs 1 crore for women/SC/ST), PMEGP (up to Rs 50 lakh for manufacturing / Rs 20 lakh for services), CGTMSE (up to Rs 5 crore with government guarantee), Stree Shakti (women-focused).
What is Stand-Up India?
Government scheme for one SC/ST/woman entrepreneur per bank branch - loans Rs 10 lakh to Rs 1 crore for setting up a greenfield enterprise in manufacturing, services or trading. Facilitated by all scheduled commercial banks.
What is PMEGP?
Prime Minister's Employment Generation Programme - subsidised loans for setting up micro-enterprises. Up to Rs 50 lakh for manufacturing, Rs 20 lakh for services. Government subsidy: 15%-35% based on location and applicant category.
How to apply for a Mudra Loan?
Any bank / MFI participating in Mudra scheme. Also via UdyamiMitra.in portal. Simple documentation - KYC + business plan + bank statement. Sub-Rs 50k Shishu loans need minimal papers.
Are government scheme loans really collateral-free?
Yes - the government (via CGTMSE fund) guarantees the lender, so no personal or business collateral is taken from you. Some lenders may still ask for a family member as guarantor.
What is the interest rate on Mudra Loan?
Mudra rates vary by lender - typically 8.15% - 12% for PSU banks, up to 18% for some NBFCs. There is no fixed rate - lenders decide based on their risk assessment.
What is the Emergency Credit Line Guarantee Scheme (ECLGS)?
A COVID-era scheme (extended for select sectors) offering 100% government-guaranteed additional working capital up to 30% of existing outstanding. Some tranches still active - check with your MahadevX RM.
What is TReDS?
Trade Receivables Discounting System - an RBI-regulated electronic platform where MSMEs can discount their invoices with large corporates. Fast, transparent, and often at rates below traditional invoice financing.
Are government scheme loans faster or slower than regular loans?
Marginally slower due to scheme documentation. Mudra Shishu is fast (2-7 days). CGTMSE-covered loans need 15-30 days. But the trade-off is lower rates and no collateral.
Can I combine multiple government schemes?
Some yes - e.g., an MSME Udyam holder can access Mudra + CGTMSE + Stand-Up India + PMEGP if eligible under each. MahadevX RMs help identify which combinations optimise your funding.
How do I apply for a business loan through MahadevX?
Fill the eligibility form on this page or call +91 98710 01985. Our RM reviews your profile, recommends top 3 lender matches, submits your application in parallel, and coordinates end-to-end till disbursal. Zero fee to you.
Can I apply for a business loan online?
Yes - the entire journey from application to e-signing can be online for most private banks and NBFCs. PSU banks require branch visits for final signing. MahadevX runs your application digitally as far as the lender allows.
Can I apply to multiple lenders at once?
Yes - and you should. Each lender has different criteria - parallel applications maximise your chances and let you compare final offers. MahadevX handles this without hurting your CIBIL (soft-pull enquiries only).
Will multiple business loan enquiries hurt my CIBIL?
Only hard-pull enquiries hurt CIBIL. When MahadevX submits to multiple lenders, we do soft-pull first (no impact), then hard-pull only on lenders you approve. Well-managed multi-application is safe.
How do I track my business loan application?
MahadevX gives you a dedicated login at mahadevx.in/account/ where you can see live status, upload documents, and get real-time updates. Also via WhatsApp updates on your registered mobile.
What is the typical business loan application timeline?
Application submission: 30 mins. Document collection: 1-2 days. Underwriting: 2-5 days. Approval: 3-7 days total. Sanction letter to disbursal: 3-5 days. End-to-end: 7-14 days typically.
What if my application is rejected?
MahadevX gives you a rejection reason - CIBIL, income, vintage - and helps you improve it or route to a lender who accepts the profile. Rejection at one lender does NOT mean rejection everywhere.
Can I apply for a business loan if I already have one?
Yes - subject to your existing repayment behaviour and total leverage. Top-up on existing loan is often easier than a fresh loan. If your leverage is high, consolidation via balance-transfer + top-up may be optimal.
Do I need a guarantor for a business loan?
For unsecured business loans - usually not, but some lenders ask for a co-applicant (spouse / business partner). For LAP or larger loans - not needed. For CGTMSE-guaranteed loans - not needed (government is the guarantor).
What is the difference between sanction and disbursal?
Sanction = the lender formally approves your loan and issues a Sanction Letter with terms. Disbursal = the money hits your bank account. Between the two, you sign the loan agreement, submit post-sanction docs, and complete legal formalities.
Is MahadevX Fintech a bank?
No - MahadevX is a licensed loan Direct Selling Agent (DSA). We partner with 100+ RBI-regulated banks, NBFCs and fintechs to source, screen, and process loan applications. The actual loan is disbursed by the lender directly to your account.
How does MahadevX make money?
We earn a commission from the lender when a loan is successfully disbursed. This is standard DSA compensation and does NOT add any cost to your loan - your interest rate is the same as if you applied directly to the lender.
Is my data safe with MahadevX?
Yes - we are RBI DSA-compliant, use bank-grade encryption, never sell your data, and share only with the specific lender(s) you approve. Full data protection policy at mahadevx.in/privacy-policy/.
Can I speak to a loan expert before applying?
Yes - call +91 98710 01985 or use "Talk to Expert" on this page. Our advisors help you understand product fit, expected rates, and required documents - all before any application.
What if I want to close my business - can I still repay the loan?
Yes - the loan is on the business entity + guarantors. Closing the business does not close the loan. You must arrange repayment (from asset sale or personal funds). Talk to your lender about restructuring or one-time settlement (OTS) if unable.
Are business loans available in rural areas?
Yes - Regional Rural Banks (RRBs), Cooperative Banks, and PSU bank rural branches serve rural MSMEs. Government schemes like PMEGP are actively deployed in rural areas. MahadevX handles pan-India applications.
Can I get a business loan in USD or other foreign currency?
Only via ECB (External Commercial Borrowings) route for large loans (Rs 25 crore+) with RBI approval. For import LCs, dollar-denominated Buyer's Credit is standard. Not applicable for typical MSME loans.
What is a Business Loan EMI Calculator?
A tool that calculates your monthly EMI given loan amount, interest rate and tenure. Use our calculator above to model scenarios - it also shows total interest and payment schedule.
How to calculate business loan EMI manually?
EMI = [P x R x (1+R)^N] / [(1+R)^N - 1], where P = principal, R = monthly rate (annual/12/100), N = months. For Rs 10 lakh @14% for 36 months: EMI approx Rs 34,178.
What is the best time to apply for a business loan?
Just after filing GST + ITR for the year (fresh documentation), during festive season (lenders offer processing-fee waivers), or when RBI has recently cut rates (floating-rate loans get cheaper). Avoid year-end March rush.
Reviews

What Our Customers Say

2,847 verified reviews. Average rating 4.7 / 5. Below is a small selection.

★★★★★

"Got a Rs 45 lakh unsecured business loan from Bajaj Finance in 4 days. MahadevX RM handled everything - I signed papers, they did the rest. Rate was 1.2% lower than what I got when I applied directly last year."

Suresh K., ManufacturerPune
★★★★★

"Our textile export business needed Rs 2 crore working capital urgently. MahadevX got us a Kotak OD in 8 working days. Priya was our RM - available on WhatsApp late nights during the paperwork phase."

Rajesh M., ExporterSurat
★★★★★

"As a first-time entrepreneur, I was rejected by 3 banks. MahadevX routed me to a specialised NBFC that understood my SaaS business model. Got Rs 25 lakh at 14.5%. Now growing 30% MoM."

Anjali D., IT FounderBengaluru
★★★★★

"Restaurant expansion loan - Rs 60 lakh. MahadevX secured it via IDFC First at 12.75%. Their advisor even sat with me to model unit economics before the loan sized itself right."

Vikram S., Restaurant OwnerDelhi NCR
★★★★★

"I run a 3-doctor clinic. Needed Rs 35 lakh for equipment. HDFC gave me a Doctor Loan at 11.5%, disbursed in 5 days. MahadevX also arranged insurance for the machinery."

Dr. Meera R., MedicalChennai
★★★★☆

"Balance transferred my Rs 80 lakh business loan from an expensive NBFC to SBI at 10.85% - saving me Rs 6+ lakh over the tenure. MahadevX RM handled all coordination."

Arun P., Trading BusinessCoimbatore
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