Running and expanding a business requires constant cash flow. Whether you are a startup founder, small business owner, or self-employed professional, a business loan can provide the necessary funding for working capital, expansion, equipment purchase, or marketing.
In 2025, Indian banks, NBFCs, and government schemes are offering flexible business loan options with low interest rates and quick approval. But how do you choose the best business loan option?
This guide covers:
✔ Types of business loans in India
✔ Best banks, NBFCs, and loan apps
✔ Government schemes for MSMEs & women entrepreneurs
✔ Eligibility, documents, and tips for faster approval
✅ Types of Business Loans in India
1. Unsecured Business Loan (No Collateral)
- Offered by banks & NBFCs without property or asset security.
- Loan amount: ₹50,000 – ₹50 lakh.
- Interest rate: 12%–20%.
👉 Best for small businesses & startups that don’t own collateral.
2. Secured Business Loan
- Loan given against property, fixed deposit, or other assets.
- Higher loan amounts (up to ₹5 crore).
- Lower interest rates than unsecured loans.
👉 Best for established businesses needing high funding.
3. Working Capital Loan
- Helps businesses manage daily operations & cash flow.
- Short-term loan (6–12 months).
👉 Best for businesses with seasonal income.
4. Business Loan for Women Entrepreneurs
- Many government schemes and banks provide special interest subsidies for women-led businesses.
👉 Example: Stand-Up India Scheme.
5. Government Business Loan Schemes (MSME Loans)
- MUDRA Loan (Pradhan Mantri Mudra Yojana): Loans up to ₹10 lakh for small enterprises.
- CGTMSE Scheme: Collateral-free loans for MSMEs.
- Stand-Up India Scheme: Loans for women & SC/ST entrepreneurs.
👉 Best for small and medium businesses seeking easy loans.
6. Instant Business Loan Apps
Popular apps include:
- Lendingkart – Online business loans up to ₹2 crore.
- NeoGrowth – Loans based on digital payments.
- Indifi – Tailored loans for travel, retail, restaurants.
👉 Best for fast approval with minimal documents.
✅ Best Banks for Business Loan in India (2025)
| Bank/NBFC | Loan Amount | Interest Rate | Tenure | Special Features |
|---|---|---|---|---|
| SBI Business Loan | ₹50,000 – ₹20 crore | 11.20% onwards | Up to 7 yrs | Wide range of SME/MSME products |
| HDFC Bank | ₹50,000 – ₹50 lakh | 12.75% onwards | Up to 4 yrs | Collateral-free options |
| ICICI Bank | ₹1 lakh – ₹40 lakh | 12.99% onwards | Up to 5 yrs | Easy overdraft facility |
| Axis Bank | ₹50,000 – ₹50 lakh | 13% onwards | Up to 5 yrs | Loans for traders, retailers |
| Kotak Mahindra | ₹3 lakh – ₹75 lakh | 12% onwards | Up to 5 yrs | Quick disbursal for SMEs |
| Bajaj Finserv (NBFC) | ₹1 lakh – ₹50 lakh | 14% onwards | Up to 8 yrs | Flexible repayment options |
Keywords included naturally: business loan without collateral, MSME loan scheme, SBI business loan, HDFC business loan, apply business loan online.
✅ Business Loan Eligibility Criteria
- Age: 21–65 years
- Business Vintage: Minimum 2–3 years (for banks)
- CIBIL Score: 700+ preferred
- Turnover: ₹10 lakh+ annually (varies by lender)
✅ Documents Required
- Aadhaar & PAN card
- Business registration certificate
- ITR / GST returns (last 1–2 years)
- Bank statements (last 6–12 months)
- Proof of office/shop (rent agreement or ownership papers)
✅ Tips to Get the Best Business Loan Option
✔ Maintain a good credit score (700+).
✔ Keep your ITR and GST filings updated.
✔ Compare interest rates & processing fees.
✔ Apply for government MSME loan schemes if eligible.
✔ Choose NBFCs or loan apps for quick approvals.
✅ FAQs
1. Can I get a business loan without collateral?
Yes, many banks and NBFCs offer unsecured business loans up to ₹50 lakh.
2. Which is the best business loan app in India?
Lendingkart, NeoGrowth, and Indifi are some of the top apps for instant online business loans.
3. What is the maximum tenure for business loans?
Usually up to 7–8 years, depending on lender.
4. What government schemes are available for MSMEs?
MUDRA, Stand-Up India, and CGTMSE are popular schemes.
✅ Conclusion
A business loan is the fastest way to expand operations, buy equipment, or manage working capital. If you want a collateral-free loan, HDFC, ICICI, and Bajaj Finserv are good options. For large loan amounts, SBI and Axis Bank are reliable. And if you are a small business owner or startup, don’t forget to explore government MSME schemes.