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Loan Rates in TamilNadu

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Unsecured Business Loan

How to Get a Business Loan in TAMILNADU?

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Know your loan eligibility

Wondering how much you can borrow? We can help you with that. Your loan amount is determined by your Fixed Obligations to Income Ratio (FOIR) or Debt-Service Coverage Ratio (DSCR) or Banking Transactions or Repayment Track Record (RTR) implemented by banks and Financial Institutions. Reach out to us, so you can find out your loan eligibility quickly.

Get your In-Principle Approval (IPA)

Gone are the days when you’d have to visit banks for your In-Principle Approval. We’ve streamlined the process to make it easier and faster for you to get one. Simply gather the required documents, submit everything to us and wait for approval.

Apply for business loan

Once you get your IPA, you’re all set for the next step – getting the best business loan in TAMILNADU. With the help of our knowledgeable Business Loan Specialists, you can be confident that you’ll be getting the highest loan amount at the lowest interest rates.

Business Loan - Overview

Banking and NBFC finance still remains the mainstay of India’s small and medium enterprises. Business loans help your small business grow, allowing you to invest in infrastructure, operations, and plant and machinery. Moreover, business loans can also be a veritable medium of maintaining Business for critical business operations. Customized business loans are a new category of business loans which are tailored to meet the specific needs of a new age business or startup. These loans offer your enterprise the opportunity to scale and give it the competitive edge necessary for success in today’s world.

Key Benefits and Features

Loan Amount

Collateral Free Loan

Quick Approvals in 24 hours*

Flexible Repayment

Balance Transfer Facility

Dropline Overdraft Facility

Door Step service

Loan Amount:

Banks/NBFCs offers business loan ranging from Rs.3 Lakhs to Rs.75 Lakhs for small, medium and large businesses.

Collateral-Free Loan:

Banks/NBFCs unsecured business loan which means you can fund your business without any collateral/guarantor.

Quick Approvals in 24 hours*:

Get quick approval on business loan from many Banks/NBFCs with hassle-free processing to meet immediate financial needs of your growing business.

Flexible Repayment:

Many Banks/NBFCs provides business loans with flexible tenures of upto 60 months to make repayment easy.

Balance Transfer Facility:

Transfer your existing business loan to other Banks/NBFCs for lower EMIs, lower Interest and processing fee waiver.

Dropline Overdraft Facility:

Many Banks/NBFCs provides Overdraft facility without any security. Limit is set in separate Current account which drops monthly till end of the tenure, pay the interest only on the amount utilized. Tenure ranging 12-72 months.

Door Step services:

Along with your business, BankVallet also takes care of your convenience. Enjoy our doorstep services by availing our business loan.

Types of Business Loans

A few types of business loans are as follows:
Overdraft facility

In an overdraft facility, the business owner can withdraw a larger sum than the amount present in the account as a loan to meet his or her business needs. The maximum amount that can be withdrawn and the interest rate under this facility is based on a mutual agreement between the lender and borrower.

Term loans

In case of a term loan, a borrower can avail a secured or unsecured loan to receive the funds according to the situation and requirement of the business. These loans are helpful in acquiring long-term assets. There are three types of term loans based on tenure namely short-term loan, long-term loan, and intermediate loan that can be repaid on a monthly or quarterly basis. While the rate of interest for such loans can be fixed or floating, it varies according to the loan repayment tenure.

Demand loans

When an entrepreneur withdraws a demand loan to meet the financial requirements of his or her business, the amount has to be repaid whenever the bank or non-banking financing company (NBFC) recalls it. Demand loans can be both secured and unsecured and are ideal to meet a short-term financial crisis. While the maximum term for this type of a business loan can be 12 months, the merchant can choose to renew it when the term has ended.

Loan against securities

At the time of a financial crisis, a business can also decide to opt for a loan against its financial securities that are approved by the bank such as mutual funds, fixed maturity plans, insurance policies, savings bonds, demat shares, exchange-traded funds, etc.

Cash credit facility

The cash credit facility is an overdraft loan that can be availed by a business to finance its need for working capital by offering its current assets such as receivables, inventory, etc. as collateral. The maximum amount that can be withdrawn using this scheme is dependent on the stock margin fixed by the bank. The tenure of this loan can be renewed at regular intervals of 12 months.

Bank guarantee

Whether you own a public/private limited company or proprietorship/partnership firm, you can avail this pre-approved secured loan by offering residential, commercial, or industrial property as collateral. This financing scheme helps companies secure down loans, buy the required equipment, or cover any additional costs that will help the organization grow. In this kind of a business loan, the financing company promises to pay the stakeholders of the guaranteed business in case it defaults.

Business loans for women entrepreneurs

In a bid to promote women empowerment, numerous banks and NBFCs offer special loan schemes to existing and potential women entrepreneurs. These exclusive schemes offer a lot of benefits and special discounts in terms of quantum of loan, interest rate, security, etc. Furthermore, female entrepreneurs can also benefit from the consulting, training, and counseling offered by several lenders to help them learn about various aspects of the market and industry. However, these loans are only available to women who hold more than 50% shares of a company.

Who could be eligible for a Business Loan?

Are you thinking of availing a business loan anytime soon? Browse through Banks/NBFCs business loan eligibility criteria mentioned below, to make sure your business loan is approved at the very first go:

  • The applicant has to be in business for last 3 years with a minimum turnover of Rs.40 Lakhs
  • If the applicant involved in business for last 6 months, then need a minimum banking turnover of Rs.3 Lakhs/per month
  • The company’s profit after tax (PAT) for the last two years should be positive
  • The applicant should be a Sole Proprietor / Partnership firm / Private Ltd Co. / Trust / Limited Liability Partnerships / Closely held limited companies involved in the business of Manufacturing, Trading or Services, Self employed Individuals / Professionals / Non-Professionals
  • Self-employed professionals usually include doctors, chartered accountants, company secretaries, architects, etc. This is subject to the applicants who have proof of qualifications and also are practicing their profession.
  • Self-employed non-professionals include traders, manufacturers, service providers, etc.
  • The main applicant should be minimum of 25 years of age & should be no older than 68 years at the time of loan maturity.
  • Good credit rating score in credit bureau
  • Eligibility may vary as per Banks/NBFCs scheme chosen
  • Banks/NBFCs may offer business loans to only certain cities and towns.

*If you are not sure if your business falls under a restricted category or location, you can contact us @ 90470 45470 to confirm your eligibility.

You can use a Business Loan to:
  • Increase your business cash flow
  • Lease bigger office premises
  • Renovate your office Purchase, lease or repair machinery and equipment
  • Upgrade to the latest technology
  • Stock up on inventory
  • Hire seasonal employees
  • Purchase raw material for bulk orders
  • Expand to another area or city
  • Scale up operations and take on bigger projects and much more
4 reasons why you should get a Business Loan to stay ahead in business
Expansion

Growth is key in any business. When business is booming, expansion can help ensure that your profits don’t shrink. Business loans can help you cover the costs of expansion without taking away your operational funds so that you can watch your business grow.

Inventory

Inventory is the lifeblood of every retail, wholesale and seasonal business. Once your business is operational you’ll need finance to continually expand and reload your inventory to keep up with demand and to provide better options to your customers. Taking a Business Loan will help you offset inventory cost and you can stay ahead of trends and customer demand without hurting your income.

Cash Flow

Cash flow is a challenge for most businesses if your business is seasonal or if you have customers who don’t pay for services on time or when you have unsold inventory that needs to be moved to bring in new products. This can impact your regular costs of inventory, staff, utilities, and rent or mortgage. A Business Loan can help you manage regular costs, and stay afloat when profits are low.

Equipment

Businesses often have the need to purchase, replace, repair or upgrade various kind of equipment. Equipment is expensive and essential for business to run at maximum efficiency and maximum productivity. Unplanned expenses like the repair or replacement of broken equipment can harm your budget. Business loan gets you the money you need at a fast turnaround so you can continue to run the business at its optimum level.

Business Loan Eligibility

Eligibility Criteria Requirement
Age Minimum Age: 21 years and Maximum Age: 65 years
Resident Type

The applicant must be (any one):

  • Resident Indian
Employment

The applicant can be (any one):

  • Self-employed
  • Self-employed professional
  • Self-employed non-professional
Minimum Annual Turn-over At least Rs.40 lakh and above (per annum)
Net Annual Income At least Rs.1.50-3 lakh (per annum)
Credit score A good credit score of at least 700 or more obtained from a recognized credit bureau

Business Loan Documents

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For PROPRIETORSHIP BUSINESS:
For Company:
Business Proof:
  • Professional Tax Receipt or SSI Certificate or Company’s RC (TIN No) Copy or Any other old business proofs
  • GST Certificate copy
Income Proof:
  • Latest two Financial Year’s (FY) Income Tax Return copies with full set (with auditor seal & sign)
  • Bank account statements for all the bank accounts (Current/OD/CC) owned by the applicant for the last one year
For Proprietor:
Identity Proof (any one):
  • PAN (mandatory)
  • Driving License/ Voter ID/Valid Passport/Smart Ration Card
Current Residence Address Proof (any one):
  • Copy of Driving License/Electricity Bill/Water Tax/Property Tax/Aadhaar Card/Telephone Bill/Valid Passport/Notary Public Affidavit
Passport Size Photograph:
  • Two passport size recent photographs
Own House Proof (for any one director):
  • Own House EB bill or Latest House Tax Receipt
For Co-Applicant (if needed):
Identity Proof:
  • PAN
  • Driving License/ Voter ID/Valid Passport/Smart Ration Card
Current Residence Address Proof (any one):
  • Copy of Driving License/Electricity Bill/Water Tax/Property Tax/Aadhaar Card/Telephone Bill/Valid Passport/Notary Public Affidavit
Passport Size Photograph:
  • Two passport size recent photographs
For PARTNERSHIP FIRM:
Business Proof:
  • Professional Tax Receipt or SSI Certificate or Company’s RC (TIN No) Copy or Any other old business proofs
  • GST Certificate copy
  • Partnership Deed
  • Company PAN
Income Proof:
  • Latest two Financial Year’s (FY) Income Tax Return copies with full set (with auditor seal & sign)
  • Bank account statements for all the bank accounts (Current/OD/CC) owned by the applicant for the last one year
For Partners (51% share holding partners should come into the loan proposal):
Identity Proof (any one):
  • PAN (mandatory)
  • Driving License/ Voter ID/Valid Passport/Smart Ration Card
Current Residence Address Proof (any one):
  • Copy of Driving License/Electricity Bill/Water Tax/Property Tax/Aadhaar Card/Telephone Bill/Valid Passport/Notary Public Affidavit
Passport Size Photograph:
  • Two passport size recent photographs
Own House Proof (for any one director):
  • Own House EB bill or Latest House Tax Receipt
For Co-Applicant (if needed):
Identity Proof:
  • PAN
  • Driving License/ Voter ID/Valid Passport/Smart Ration Card
Current Residence Address Proof (any one):
  • Copy of Driving License/Electricity Bill/Water Tax/Property Tax/Aadhaar Card/Telephone Bill/Valid Passport/Notary Public Affidavit
Passport Size Photograph:
  • Two passport size recent photographs
For PVT LTD/LLP COMPANY:
Business Proof:
  • Professional Tax Receipt or SSI Certificate or Company’s RC (TIN No) Copy or Any other old business proofs
  • GST Certificate copy
  • AOA/MOA Copy
  • Company PAN
  • Directors Identification Number (DIN) copy
Income Proof:
  • Latest two Financial Year’s (FY) Income Tax Return copies with full set (with auditor seal & sign)
  • Bank account statements for all the bank accounts (Current/OD/CC) owned by the applicant for the last one year
For Directors (51% share holding directors should come into the loan proposal):
Identity Proof (any one):
  • PAN (mandatory)
  • Driving License/ Voter ID/Valid Passport/Smart Ration Card
Current Residence Address Proof (any one):
  • Copy of Driving License/Electricity Bill/Water Tax/Property Tax/Aadhaar Card/Telephone Bill/Valid Passport/Notary Public Affidavit
Passport Size Photograph:
  • Two passport size recent photographs
Own House Proof (for any one director):
  • Own House EB bill or Latest House Tax Receipt
For Co-Applicant (if needed):
Identity Proof:
  • PAN
  • Driving License/ Voter ID/Valid Passport/Smart Ration Card
Current Residence Address Proof (any one):
  • Copy of Driving License/Electricity Bill/Water Tax/Property Tax/Aadhaar Card/Telephone Bill/Valid Passport/Notary Public Affidavit
Passport Size Photograph:
  • Two passport size recent photographs
For Self Employed Professionals (SEP – Doctors/Engineers/Chartered Accountants/Other Professionals):
Identity Proof (any one):
  • PAN (mandatory)
  • Driving License/ Voter ID/Valid Passport/Smart Ration Card
Current Residence Address Proof (any one):
  • Copy of Driving License/Electricity Bill/Water Tax/Property Tax/Aadhaar Card/Telephone Bill/Valid Passport/Notary Public Affidavit
Passport Size Photograph:
  • Two passport size recent photographs
Qualification Proof:
  • Certificate of Qualification (for Doctors/C.A. and other professionals)
  • Medical Registration Certificate (for Doctors)
Income Proof:
  • Copy of Form 16 or Latest two Financial Year’s (FY) Income Tax Return copies with full set (with auditor seal & sign)
  • Bank account statements for all the bank accounts (SB/Current/OD/CC) owned by the applicant for the last one year
Own House Proof (for any one director):
  • Own House EB bill or Latest House Tax Receipt
For Co-Applicant (if needed):
Identity Proof:
  • PAN
  • Driving License/ Voter ID/Valid Passport/Smart Ration Card
Current Residence Address Proof (any one):
  • Copy of Driving License/Electricity Bill/Water Tax/Property Tax/Aadhaar Card/Telephone Bill/Valid Passport/Notary Public Affidavit
Passport Size Photograph:
  • Two passport size recent photographs

*Requirement of business loan documents might vary according to the scheme chosen. Banks/NBFCs may require additional business loan documents which will be intimated to you while processing your application.

Unsecured Business Loan Interest Rates

Compare the lowest business loan interest rates starting from 16% p.a. and apply for the best business loan. Get the complete list of current business loan rate of interest in India from all leading banks and financial institutions.

Unsecured Business Loan
Bank/NBFCs Interest Rate (%) Processing Fees (%) Tenure (yrs.)
min max min max min max
HDFC Bank 16 19 0.99 2 2 4
Bajaj Finserv 18.5 21 0.99 2 2 4
Axis Bank 17 19 1 2 3 4
IDFC First Bank 19 20 1.5 2 2 4
ICICI Bank 17.5 19 0.99 2 1 5
Yes Bank 17 18 0.99 1.5 2 3
Kotak Bank 18 19 0.99 1.5 2 4
Fullerton India 17 28 2 2.25 2 3
Magma Fincorp 19 21 1.5 2 2 3
Indiabulls 19 26 2 2.25 3 3
Aditya Birla 19 24 0.99 2 3 3
TATA Capital 18 19 0.99 2 3 3
Muthoot 22 24 1.5 2 3 3
Capital Float 19 22 1 2 2 3
Lendingkart 18 26 2 2.5 1.5 3
Neogrowth 24 28 2 2.5 1.5 3
KapitalTech 24 28 2 2.5 2 3
Ofbusiness 18 19 1.5 2 2 3

Business Loan Fees and Charges

Depending on the type of loan you are applying for, the following charges may be levied:
Processing fees :

This is a one-time non-refundable fee that is to be paid to the business loan provider after the loan application has been approved. The processing charge varies depending on the bank and the loan scheme you are applying for.

Prepayment charges:

Prepayment penalty is the fee you will have to pay the lender if you plan on repaying your business loan before the completion of the loan tenure.

Foreclosure Charges:

Foreclosure penalty is the fee you will have to pay the lender if you plan on foreclosing your business loan before the completion of the loan tenure.

Cheque dishonor charges:

The fee is levied when the loan provider find that a cheque issued by the borrower is found to be dishonored due to reasons such as insufficient funds in the borrower’s account.

Insurance:

This is a one-time non-refundable fee that is to be paid to the business loan provider after the loan application has been approved. Some Banks/NBFCs add this charge with the approved loan amount and deducted with EMIs.

Default charges:

Loan providers also charge a penalty on delayed repayments i.e. if you fail to make your Equated Monthly Installments (EMIs) or Pre-EMIs on time. The defaulting charges vary from one bank to another.

Incidental charges:

This charge covers for the expenses incurred by the bank to recover dues from a borrower who has failed to make his monthly installments on time.

Charges On Account Of Delayed Payments:

Delayed payment of interest or EMI shall render the customer liable to pay additional interest up to 24% per annum.

Annual/Additional Maintenance Charges

This charge is applicable for Dropline Overdraft Business Loan. Banks/NBFCs are charged up to 2% of Annual/Additional Maintenance Charges on your sanctioned loan amount.

Calculators

FAQs on Business Loans

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Do I need to go to a Banks/NBFC branches to get a business loan?
  • No, there is no need to visit Banks/NBFC branches to apply for a business loan. We have made the process simple; you can apply for a business loan through our website.
  • You can submit required details through our website and we will call you back and let you know about eligibility and application status. BankVallet will have the necessary documents picked up from your residence or office.
  • If you have any questions regarding the business loan application process, please feel free to contact our customer care at +91- 90470 45470 or write to us at wecare@bankvallet.com.
How secure is my information when I provide it during the BankVallet loan comparison process?

All your sensitive information like personal/financial information is encrypted and safeguarded with our best in class security systems. We don't share your information with any marketing agencies or any 3rd party without your consent.

How long does it take to get a business loan?

At BankVallet, we have simplified the process of obtaining a business loan. You can visit our website and apply for the business loan by submitting your details. We will call you back and notify you if you are eligible. Thereafter, you can submit your documents to our representative who will visit either your home or office as per your convenience. We strive to process the complete application within 48 hours of complete document submission. If you have any questions regarding the business loan application process, please feel free to contact our customer care at 90470 45470 or write to us at wecare@bankvallet.com.

How will Banks/NBFCs determine my business loan eligibility?

There are a number of factors that are taken into consideration before we approve your application for a business loan. These include:

  • The corpus for a business loan depends on numerous factors such as the amount of profit it makes annually, valuation of the business, and operating industry of the business in addition to the number of years it has been operational.
  • Your yearly business turnover which is showed in last 2 years ITR
  • Your latest 6-12 months Banking transactions which is transact in SB/Current/OD/CC accounts
  • Your work experience: Banks/NBFCs require self-employed individuals should have been in business for at least 2 years and SEPs at least 3 years of experience.
  • Your age: You should be at least 26 years at the time of loan application and maximum 70 years of age at the time of loan maturity.
  • Good credit rating: Banks/NBFCs examine your CIBIL record; They extend credit to individuals and entities with a good credit rating.
Do I need to provide any security or guarantor or collateral to apply for a business loan?

Banks/NBFCs provide unsecured business loans without any collateral. There is also no need for any co-signee or guarantor either. Lenders provide you with business loans without security so that you can get easy access to credit for your business expansion needs.

Is the interest on my business loan flat or reducing?

Many Banks/NBFCs levy the reducing interest rate on our business loans. You will only need to pay interest on the outstanding principal amount.

What is the maximum loan amount I can get?

You can get a business from a minimum of Rs. 3 lakh to a maximum of Rs. 75 lakh.

What is the tenure for which I can apply for a business loan?

All lenders offer flexible tenures so that the EMI is always affordable and serves your needs instead of being a burden. You can choose loan tenure between 12 and 60 months when you take a Business Loan.

Can Banks/NBFCs offer business loan as an overdraft?

Yes, you can avail business loan with short term overdraft facility

What is Broken Period Interest?

An indicative broken period is the time gap between the disbursement of a personal loan and the time when the payment of EMI starts. Banks charge interest on the broken period which is called broken period interest. For example, the EMI of a particular personal loan has to be debited on the 5th of every month. Let’s say the loan has been disbursed on 1st of February, so on the 5th of February, you will have to pay interest of 5 days i.e. 1st to 5th February. The interest which you pay on 5th February does not include on your total outgo of the loan. Your EMI deduction will start from 5th of March onwards. In this way, the payment which you paid on the 5th of February was not considered towards loan repayment.

Is the interest rate for the business loan standard between lenders?

No, the interest rates offered by lenders vary.

Is there any CIBIL impact if I close my business loan?

Business loans are given in the name of businesses, and not individual names. There is no impact of closing a business loan early on your CIBIL score.

What kind of Benefits of Prepayment the loan?
  • Reduces the outstanding principal.
  • Lowers either the EMIs or the loan tenure.
  • Frees you from debts quickly.

A GST rate of 18% will be applicable on banking services and products from 01 July, 2017.

How To Apply for a Business Loan

1

Compare the best Business Loan packages

At BankVallet, we give you an overview of the latest Business Loan packages available in the market. With just a few clicks, you’ll be able to compare the best interest rates from our Banks and Financial Partners.

2

Get in touch with our Business Loan Specialist

From knowing your loan eligibility to getting your IPA, we’ll fill you in with all the pertinent details regarding Business Loan. Our Business Loan Specialists will help you throughout the process and give you unbiased advice.

3

Apply for your Business Loan

Once you have your IPA, we can get started with your Business Loan application. We understand that this is a major life decision and we’re here to guide you. With our help, the Business Loan application process can be completed within 1 working day. Although, some banks and financial institutions may take up to 2 working days to complete.

Why Get Your Business Loan
Through Us?

Simple, Fast, Convenient

Leave your Business Loan research to us and we will break it down for you in simple terms. Our Business Loan Specialist will contact you directly so you can save time for other important things in life.

We compare so you get better deals

Feeling so spoilt for choice you cannot decide? Settling for the first option is like being forced to marry the first person you come across on a matrimony app. Don’t feel pressured. We compare across all banks in TamilNadu to ensure that you get the best deals.

Most importantly it's free!

Our service to you is free. But, of course we are not doing this for charity! All banks pay us a standard referral fee for our services and our awesome job done. We don’t take sides or give biased advice.

We have helped thousands of Tamilnadu consumers choose and apply for their Business Loans

I got my business loan of ₹30 Lakhs from IIFL through BankVallet. I called BankVallet staff through one phone call. They directly visited my place and listen carefully about my requirements and they suggest most suitable business loan product which is compete my requirements. I am very impressed with their loan service. Finally I got my unsecured business loan without any headaches and without any delay and also without bank visit.

Perfect Metal Traders
Employed full time

Good response and professional services! I got my business loan from HDFC Bank. BankVallet staffs helped me a lot to avail my loan in a quick manner. I love their approach and loan services.

R.R. PRINTOGRAPH
Employed full time

I availed my business loan from HDFC Bank through bankvallet. Their services are fully free and transparent. I am very satisfied their services. So that I give 5 star. Now I handover my home loan project to them. I hope they will do well as like this.

hari yuva
Employed full time

We Work with All Major Business Loan Providers