Top Business Loan Schemes in India – Eligibility & Apply Online
Top Business Loan Schemes guide (Hindi + English) — compare schemes, eligibility, interest rates, documents, online apply steps and FAQs.1. Introduction
English: For entrepreneurs and small businesses in India, affordable and accessible finance is essential for growth. Government-supported loan schemes and lender-specific business loan products help startups, MSMEs and retailers expand operations, buy machinery, manage working capital and upgrade technology. In 2025, several notable schemes (government and bank-backed) offer concessional interest rates, credit guarantees and quick online processing. This guide lists the top business loan schemes in India, explains eligibility, documents, interest & charges, and shows how to apply both online and offline.
हिंदी: भारत में व्यवसाय शुरू करना और उसका विस्तार करना capital-intensive होता है। सरकार और बैंक विभिन्न योजनाओं और बिज़नेस लोन प्रोडक्ट्स के माध्यम से उद्यमियों को आसान कर्ज (concessional loans), गारंटी और तेज़ आवेदन प्रक्रिया देते हैं। 2025 में MSME loans, CGTMSE-backed schemes, MUDRA Loans, and bank business loans लोकप्रिय विकल्प हैं। इस गाइड में टॉप स्कीम्स, उनकी eligibility, दस्तावेज़, ब्याज दरें और ऑनलाइन अप्लाई प्रक्रिया दी गई है।
2. What is a Business Loan? (बिजनेस लोन क्या है?)
English: A business loan is money lent to a company, small business owner or entrepreneur to start, manage or expand business operations. Loans may be for working capital, buying machinery, expansion, or meeting cash flow gaps. Repayment terms, interest rates and collateral requirements differ by lender and scheme.
हिंदी: बिजनेस लोन वह ऋण है जो किसी उद्यमी या कारोबार को व्यवसाय शुरू/विस्तार/रनिंग कैपिटल के लिए दिया जाता है। यह short-term या long-term हो सकता है और कुछ योजनाओं में collateral की आवश्यकता नहीं होती।
3. Types of Business Loans in India (2025)
- Working Capital Loans — Daily operations, inventory, payroll.
- Term Loans — For machinery purchase, expansion (medium to long term).
- MUDRA Loans — Small business loans under Pradhan Mantri MUDRA Yojana.
- MSME Loans (with CGTMSE guarantee) — Credit Guarantee scheme backed loans for MSMEs.
- Overdraft & Cash Credit — Flexible limit for short-term needs.
- Invoice Discounting / Bill Financing — To manage receivables cash flow.
- Collateral-free Business Loans — For startups & small traders with turnover criteria.
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4. Best Business Loan Schemes in India — Comparison Table
| Scheme / Product | Loan Amount | Interest Rate (Indicative) | Key Benefits |
|---|---|---|---|
| Pradhan Mantri MUDRA Yojana (Shishu/ Kishore/ Tarun) | ₹50,000 – ₹10 Lakh | ~9% – 12% (varies by bank) | Collateral-free, easy for micro enterprises |
| CGTMSE-backed MSME Loan | Up to ₹2 Crore | ~8% – 14% | Credit Guarantee removes collateral need |
| Stand-up India Loan | ₹10 Lakh – ₹1 Crore | ~9% – 13% | Focused on SC/ST & women entrepreneurs |
| Bank Business Term Loans (SBI, HDFC, ICICI etc.) | ₹5 Lakh – ₹50 Crore | ~8.5% – 15% (depends credit profile) | Higher amounts, flexible tenor |
| NBFC Small Business Loans (Collateral-free) | ₹50,000 – ₹50 Lakh | ~12% – 24% | Fast processing, minimal paperwork |
Indicative rates & amounts—always verify with the lender before applying. / दरें और अमाउंट संकेतक हैं—अप्लाई करने से पहले बैंक/लेंडर की साइट देखें।
5. Top 10 Business Loan Schemes with Details (Benefits, Interest, Eligibility)
1) Pradhan Mantri MUDRA Yojana (PMMY)
Benefits: Three categories — Shishu (up to ₹50k), Kishore (₹50k–₹5L), Tarun (₹5L–₹10L). Mostly collateral-free, designed for micro enterprises and traders.
Eligibility: Proprietorships, small manufacturers, traders, services. Minimal paperwork; GST/Shop Act/PAN usually required.
2) CGTMSE-backed MSME Loans
Benefits: Credit Guarantee Fund protects lenders—reduces requirement of collateral for loans up to ₹2 Cr. Good for growing MSMEs.
Eligibility: Registered MSMEs, required business vintage & financials depending on bank.
3) Stand-up India Scheme
Benefits: Loans between ₹10 lakh and ₹1 crore for SC/ST and women entrepreneurs; promoter incentive and handholding support.
4) SBI Mudra / SBI MSME Loans
Benefits: Large bank network, competitive rates for account-holders, special schemes for women entrepreneurs and exporters.
5) HDFC Business Loans (Term Loans & Working Capital)
Benefits: Quick processing for salaried-run small businesses, tailored tenor and EMIs; useful for expansion and equipment finance.
6) NBFC MSME/SME Loans (e.g., Lendingkart, Indifi)
Benefits: Faster disbursal (24–72 hours), relaxed documentation, ideal for e-commerce sellers and retailers—but higher interest.
7) CGTMSE-Linked Term Loan for Women Entrepreneurs
Benefits: Lower interest and priority processing in many public sector banks for women-owned units.
8) Kisan Credit Card (for agri business)
Benefits: Short-term credit for farmers and agri-related micro businesses; subsidised rates sometimes available.
9) Export Credit (For exporters)
Benefits: Pre-shipment and post-shipment credit lines available via banks — helps working capital for exporters.
10) ECLGS / Emergency Credit Line (as applicable)
Benefits: Government-backed emergency credit lines (when active) with special concessions during stress periods for MSMEs.
6. Business Loan Apply Process (Online + Offline)
Online Process
- Visit the lender’s official website or aggregator (Lendingkart, Bank portals).
- Choose loan type (MUDRA / MSME term loan / overdraft) and enter business details (turnover, vintage, PAN).
- Upload KYC & business documents (soft copies) and bank statements.
- Pre-approval or sanction in 24–72 hours for NBFCs; banks may take 3–10 working days.
- Sign loan agreement e-sign / visit branch for final verification and disbursal.
Offline Process
Visit bank branch/loan officer → submit physical documents → appraisal and site visit (for larger loans) → sanction and disbursal. For government schemes (MUDRA/Stand-up India) visit bank’s MSME desk.
Pro Tip: Keep 6–12 months bank statements, GST returns, and income proof ready to speed up underwriting.
7. Charges of Business Loan (Interest, Fees & Other Costs)
- Interest Rate: Ranges ~8% (for best-profile bank loans) to 24% (for fast NBFC loans). Corporate credit score & collateral affect rates.
- Processing Fee: 0.5% to 2.5% of loan amount (may be up-front or deducted).
- Prepayment Charges: Some lenders charge for prepayment, others (especially floating-rate loans) allow it.
- GST on Fees: GST applicable on processing & other service charges.
- Stamp Duty & Legal Fees: For secured loans (charge creation), one-time legal/stamp costs may apply.
8. Benefits of Business Loan
- Access to working capital & plant/equipment financing.
- Helps expand operations, hire staff and enter new markets.
- Tax benefits: interest is often tax-deductible for business expense.
- Government schemes lower collateral burden and provide cheaper credit for MSMEs.
- NBFCs & fintech reduce turnaround time—fast approvals support growth.
9. Eligibility & Required Documents
Common Eligibility
- Business vintage (some lenders require 6–12 months turnover).
- Good banking conduct & turnover thresholds (for higher loans).
- For MUDRA: micro enterprise engaged in manufacturing/service/trade.
Common Documents
- KYC: Aadhaar Card, PAN Card, Passport size photo
- Business proof: GST registration, Shop Act, Udyam/MSME registration
- Bank statements (6–12 months)
- Income tax returns / financials (for larger loans)
- Project report / quotations (for term loans)
10. Useful Links
11. FAQs
Answer: MUDRA (Pradhan Mantri MUDRA Yojana) offers micro loans under Shishu/Kishore/Tarun categories to non-corporate small/micro enterprises. Eligibility: proprietors, small traders, artisans and service providers with basic KYC and business proof.
Some government schemes (MUDRA, CGTMSE-backed loans) and NBFC products provide collateral-free loans subject to credit appraisal. CGTMSE provides a guarantee to the lender which reduces collateral needs.
NBFCs like Lendingkart or Indifi often disburse within 24–72 hours after document submission. Banks typically take longer due to underwriting and legal checks.
CGTMSE (Credit Guarantee) offers guarantee cover to lenders who give collateral-free loans to eligible MSMEs, making banks more willing to lend without security.
To some extent—creditworthy borrowers with strong financials and relationship banking may negotiate better rates. NBFCs set rates based on risk profile.
Prepayment rules vary. Some lenders charge a prepayment fee; others allow partial/complete prepayment without penalty—check loan terms before signing.
Commonly: Aadhaar, PAN, business proof (GST/Udyam/MSME/shop registration), bank statements (6–12 months), ITR (if applicable), invoices/quotation for equipment finance.
Yes—interest on business loan is usually allowed as deductible business expense under Income Tax (subject to accounting rules). Consult a chartered accountant for specifics.
Loan size depends on business turnover, cash flows, vintage, collateral and lender policy. MUDRA covers up to ₹10L; banks & NBFCs may offer higher amounts based on appraisal.
Banks often have lower rates but longer processing; NBFCs have faster disbursal & flexible criteria but higher rates. Choose based on urgency, cost and documentation capacity.
12. Conclusion
English: Choosing the right business loan scheme in India requires balancing cost, speed, collateral needs and business goals. For micro entrepreneurs MUDRA is ideal; for growing MSMEs CGTMSE-backed bank loans give higher amounts without collateral; NBFCs provide quick cash when time matters. Compare interest, fees and processing timelines before applying.
हिंदी: सही बिजनेस लोन चुनने के लिए ब्याज दर, प्रक्रिया समय, गांरंटी और आपके व्यवसाय की growth योजना पर ध्यान दें। छोटे व्यापारियों के लिए MUDRA अच्छा है; बड़े MSMEs के लिए CGTMSE-backed बैंक लोन उपयोगी है; और जल्दी पैसे चाहिए तो NBFC विकल्प मदद करते हैं।