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Business Loans in Bangalore: Unsecured, Private, and Government Business Loans in Bangalore



Business Loan in Bangalore

Business Loan in Banglore: Bangalore is popularly known as the Silicon Valley of India, Science City of India, Garden City of India, Electronic Capital of India, Technology Hub, and Startup Capital of India. All these names are enough to describe the Bengaluru specialty. As the multiple names suggest, Bangalore is a rapidly growing business city. Bangalore is the only city where you can see businesses in all the fields such as e-commerce, finance, education, technology, and much more. Also, Bangalore is the second fastest growing metropolis city in India. And this is the main reason all the entrepreneurs wish to have their businesses in the city’s technology hub. And to help entrepreneurs start their own business, there are many financial institutions in Bangalore that are offering business loans.

So, if you are an entrepreneur who is looking to start a venture in Bangalore and want to know the business loan details, then this page is for you. On this page, we have provided all the necessary information on how to get a startup business loan in Bangalore. Read further to find out more.

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Business Loans in Bangalore

A person who wishes to start a business can easily avail a business loan in Bangalore. There are multiple financial institutions such as government, private, banks, and non-banking financial companies (NBFCs) that are offering loans to businessmen in India. Also, there are various types of business loans in Bangalore, such as term loans, collateral-free loans, and equipment loans. The business loan would vary based on the loan application and which financial institution is chosen.

Types of Business Loans Available in Bangalore

As mentioned above, there are various types of business loans that provide financial assistance to entrepreneurs in Bangalore. Let us discuss a few loan types in Bangalore that are mostly chosen by businessmen, such as term loans, collateral-free loans, and equipment loans.

1. Term Loan: The business loan which you will have to repay within the specified time frame is known as a “term loan.” Term loans usually have fixed repayment plans such as monthly, quarterly, or half-yearly based on the plan that one chooses while applying for the business loan. Any individual taking the term loan will have to pay their debts within the specified time limit with interest charges. There are also plans for short-term loans and long-term loans. Based on the term plan you choose, the repayment schedule will be disclosed to you. If you are willing to start your business in the fields of real estate, construction, or machinery production, you can choose this plan.

2. Collateral-Free Loan: A collateral-free loan is also known as an unsecured business loan or an MSME loan. Unsecured business loans in Bangalore are specially designed for micro and small enterprises in India. The Government of India established MSME business loans to assist Micro, Medium, and Small Enterprises in obtaining a business loan without requiring any security or collateral. Businesses that are already established or soon to be started are eligible to avail of this loan. Thus, if you are willing to start a business, you can apply for this collateral-free business loan in Bangalore for the purpose of daily operational costs and cash flows, machinery purchase, merchandise, and contribution towards business expansion.

3. Equipment Loans: Equipment loans are otherwise known as secured loans. Any person who wishes to take up the equipment loan will have to submit the collateral. The tenure and interest rate will depend upon the nature of the plan chosen by the applicant and the applicant’s repayment capacity. If you want the business loan for the purpose of purchasing machines, generators, motors, or plant items, then this loan comes in handy since it is specifically designed for this purpose.

Business Loan Interest Rates in Bangalore

As discussed above, the bank loan interest rate varies depending upon the bank, loan type, and purpose of the loan. Here is a glimpse of the various banks that provide business loans in Bangalore and their interest rates.

Financial Institution Name
Their Interest Rates
Axis Bank 17% onwards
Bajaj Finserv 17% onwards
FlexiLoans 16% onwards
Fullerton Finance 17% onwards
HDB Financial Services Ltd. 22% onwards
HDFC Bank 16% onwards
Hero FinCorp 18% onwards
ICICI Bank 18% onwards
IDFC First Bank 20% onwards
IIFL Finance 18% onwards
Indifi Finance 18% onwards
Kotak Mahindra Bank 14% onwards
Lendingkart Finance 18% onwards
NeoGrowth Finance 18% onwards
RBL Bank 19% onwards
SMEcorner 19% onwards
Tata Capital Finance 17% onwards
U GRO Capital 19% onwards
Yes Bank 17% onwards
ZipLoan 16% onwards

Note: The above-listed bank rates may be subject to change depending upon market rates.

Eligibility Criteria to Get a Business Loan in Bangalore

Applicants who are applying for government business loans in Bangalore or any other financial institution will have to meet the eligibility criteria set by the financial institutions offering the business loan. However, the general eligibility that one must have is as follows:

  • Self-employed individuals
  • The individual should be between the ages of 21 and 65.
  • Companies that are limited or private limited companies
  • Companies that manufacture or supply services
  • The candidate must have three years of business experience.
  • For three months, the enterprise’s minimum turnover should be Rs. 90,000.
  • An individual must provide their ITR statements for the last three years.
  • If the person has a business partner and can be a co-applicant in your business loan application, the person can boost the chance of obtaining a loan with an appropriate duration and interest rate.

List of Documents Required to Apply for a Business Loan in Bangalore

The officials will request multiple documents depending on the financial institution where you are seeking a loan. Some financial institutions may ask for more documents, while others may ask for fewer documents. Thus, individuals who are applying for instant business loans in Bangalore or for any other loan, in general, must keep the following documents handy to avoid stress during the document verification process.

  • Aadhaar Card, Pan Card, Voter ID, Passport, and other photo ID proofs
  • Residence Proof
  • Business Proof
  • Income Tax Returns (a minimum of the last 3 years’ ITR is required).
  • Bank Account Statements
  • Passport-Size Photographs
  • KYC documents
  • Business License
  • Proof of Business Ownership

How to Apply for a Business Loan in Bangalore?

Follow the steps outlined below to apply for a business loan in Bangalore.

  • 1st Step: Visit the official website or physical office of the financial institution where you want to apply for the loan.
  • 2nd Step: Choose the business plan loan that you require from various options.
  • 3rd Step: Look for the business loan application form and fill out all of the required information.
  • 4th Step: Now submit all the necessary documents as requested by bank officials.
  • 5th Step: Process the documentation fees, if applicable. That’s it.

After submission of the application and necessary documents, the bank loan will be evaluated and processed by depositing the business loan amount into the applicant’s bank account.

Business Loan in Bangalore – Important Points to Note

While applying for a business loan in Bangalore, it is extremely important for one to keep the following points in mind:

  • Choose the business plan that suits your capacity.
  • Make sure to calculate your EMI and check how much EMI you will be paying along with interest rates.
  • Compare the interest rates with multiple financial institutions and choose the one that fits your budget.
  • Choose the repayment tenure that is suitable for your business.
  • Check out the loan processing fees and make sure they are less than 3% of your total loan sanction.
  • If you submit security, then the financial institution will offer a low-interest rate. So choose wisely.

Business Loan in Other Cities

Check out the various business loans in other cities of India from the table below:

Business Loan in Mumbai Business Loan in Pune
Business Loan in Hyderabad Business Loan in Chennai

This is all about business loans in Bangalore. Entrepreneurs who are wishing to start a new venture in Bangalore can easily avail a business loan in the fast-growing economy and start a successful business. However, applicants who are applying for business loans are advised to check out the multiple banks, compare the interest rates and tenure, and choose the right financial institution that is suitable for them. So, if you are an entrepreneur who has successfully availed of a business loan in Bangalore, then do share your experience in the comment box below.

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