Top 10 Banks In India To Get A Loan To Fund Your Online Business
If you are thinking about how many banks in India that you can approach to get a loan to start your own online business, this top 10 list of banks in India for 2020.
Considering starting your own online business in India?
Thinking about a stay-at-home online business to fuel your income?
With more than over 500 million smart-phone users in India, and the number growing by leaps and bounds each day, earning money by online business has never been easier.
This is the perfect time to give wings to your online business.
Along with a great business idea and a powerful digital marketing strategy, the success of your online business depends on your financial capacity. By thumb rule, an e-commerce business needs more financial investment and funding in the initial stages.
If you are worried about the financial capacity of your online business, fret not. With the Central government pushing PSU banks towards providing affordable finance to start-ups and small businesses. India’s best banking institutions are here to help you realize your business dreams.
Table of Contents
List of Top 10 Banks In India
That Could Fund Your Business Idea
1. Axis Bank
As India’s third-largest bank, Axis Bank offers both large and small businesses a wide array of financial products and services. If you are a doctor, lawyer, engineer, chartered accountant, or any other professional, Axis Bank offers a business loan through their website.
What you can expect:
- Loan Amount: Rs. 50,000/- to Rs. 50,00,000/-
- Loan Duration: 12 months to 36 months
- Interest Rates: 15%
- Benefits: Minimum documentation, No collateral, Online loan calculator
2. HDFC Bank
HDFC Bank is one of India’s largest private sector banks. In 2019, HDFC Bank was awarded several prestigious awards including Best Bank – New Private Sector, India’s Best Bank by Euromoney Awards for Excellence, Best Bank in India 2019 by Global Magazine Finance Asia, and Bank of the Year and Best Large Bank by Business Today – Money Today Financial Awards 2019.
What you can expect:
- Loan Amount: Rs. 50,000/- to Rs. 50,00,000/-
- Loan Duration: Flexible tenure spread over 12 to 48 months
- Interest Rates: 11.9% to 20%
- Benefits: No prepayment charges after the first six months, No credit assessment charges, provides life coverage and insurance, Online eligibility check, No guarantor/security required
3. ICICI Bank
ICICI Bank offers a wide range of loan instruments to cater to different business needs. Their product range includes the usual products like Working Capital Finance, Term Loans, GST Business Loan, and an Over Draft. They also offer customized financial solutions like loans for new entities, Collateral Free Loans, Loans Without Financials, Finance for Importers & Exporters, and Insta-Secured Over Draft.
What you can expect:
- Loan Amount: Rs. 1,00,000/- to Rs. 40,00,000/-
- Loan Duration: 12 months to 36 months
- Interest Rates: 12.5% to 16.5%
- Benefits: Wide range of customizable solutions, Quick processing, Investment banking services, Special SME banking options.
4. SIDBI Bank
SIDBI Bank (Small Industries Development Bank of India) was set up with the specific objective of meeting with the finance and credit requirements of small and medium businesses and industries. It’s credit and investment solutions include schemes like SMILE (Soft loans for Micro Small and Medium Enterprises), Cash Credit for Working Capital, STFS—SIDBI Trader Finance Schemes, SPEED—SIDBI Loan for Purchase of Equipment for Enterprise Development, etc.
What you can expect:
- Loan Amount: Depending on the loan product
- Loan Duration: 12 months to 10 years including a moratorium up to 36 months
- Interest Rates: From 5% to 12%
- Benefits: Affordable interest rates, longer repayment periods, Fast loan disbursal, Low promoter contribution, No processing fee in several loans.
5. State Bank of India
State Bank of India is India’s leading public sector bank. It offers a wide range of financial products and solutions to cater to different business segments and industries. SBI’s spectrum of banking solutions includes SME loans, Asset-Backed loans, SME EBiz Loan, Loans to Business Correspondents, E-Dealer Finance Scheme, Simplified Small Business Loan, Stand Up India, E-Vendor finance scheme, and many other collection products.
What you can expect:
- Loan Amount: Depending on the scheme
- Loan Duration: 12 to 60 months
- Interest Rates: 8.25% onwards
- Benefits: Wide range of products, customizable choices, competitive interest rates, flexible repayment options,
6. Standard Chartered Bank
Standard Chartered Bank is one of the few private banks in India that offer financial support more than Rs. 50,00,000/- to help you fund your growing business. SCB has a presence in more than 70 countries and is ideal for e-commerce businesses that need global support.
What you can expect:
- Loan Amount: Rs.10,00,000/- to Rs. 75,00,000/-
- Loan Duration: 12 to 60 months
- Interest Rates: 15% to 19.5%
- Benefits: High loan amounts, flexible loan duration, no collateral needed, Loan against property up to Rs. 20 crores
7. Bank of Baroda
Bank of Baroda offers comprehensive banking solutions for your online business. Its bundle of financial products includes working capital finance, composite loans, small business borrower, fintech loans, e-business pack, MSME schemes, short term loans, medium-term loans, and many other financial schemes.
What you can expect:
- Loan Amount: Depending on the financial product
- Loan Duration: 12 months to 60 months
- Interest Rates: Depending on the financial product
- Benefits: Competitive interest rates, affordable processing fees, country-wide presence, a wide range of products.
8. IDFC First Bank
IDFC First Bank is the new kid on the block for financing your online business funding requirements. Set up in 2015, IDFC First Bank brings on the table a lot of technology-driven benefits that are essential for e-commerce and online businesses.
What you can expect:
- Loan Amount: Rs. 1,00,000/- to Rs. 15,00,000/-
- Loan Duration: 1 year to 5 year
- Interest Rates: 11.5% to 15%
- Benefits: Quick loan sanctions and speedy disbursement, no collateral security needed, loan insurance, easy approval process.
9. Kotak Mahindra Bank
Kotak Mahindra Bank’s acquisition of ING Vyasa Bank has put it in the league of one of India’s largest private sector banks. With a dynamic leadership vision, Kotak Mahindra Bank is growing rapidly and offers great growth opportunities for your online business.
What you can expect:
o Loan Amount: Rs. 3,00,000/- to Rs. 75,00,000/-
o Loan Duration: 1 year to 3 years
o Interest Rates: 15% to 19.5%
o Benefits: No collateral security needed, Flexible repayment options, FCCR (Funding against Credit Card Receivables) upto Rs. 3 crores,
10. Punjab National Bank
One of India’s oldest banks, PNB (Punjab National Bank) is India’s second-largest public sector bank. Known as India’s Swadeshi Bank, PNB offers a wide range of corporate, business, and international services.
What you can expect:
o Loan Amount: Depending on the loan package
o Loan Duration: 1 year to 5 years
o Interest Rates: Depending on the loan package
o Benefits: Provides short terms as well as long term finance, wide network across India, competitive interest rates, stress-free approval and disbursement.
What Next?
We recommend you shortlist at least 3 banks from this list and approach them for a business loan so that you have the option to let them compete against each other in case all agree to sanction the loan.
Get a loan if you need and start your online business in India.
If you are looking for ways to start without an investment read this guide.
