Best Business Loan in India 2025

Small businesses are the backbone of India’s economy — but without access to credit, growth hits a wall. Whether you need capital to expand, purchase equipment, or manage cash flow, choosing the right business loan provider can make or break your momentum.

Here’s your definitive guide to business loan providers in India, tailored for small and medium enterprises (SMEs) in 2025.

Why Choosing the Right Loan Provider Matters

Not all lenders are created equal. Factors like interest rates, loan amount, repayment flexibility, and collateral requirements vary dramatically. As a small business, you want a lender who understands your size, scale, and cash cycle.

Top Business Loan Providers in India (2025)

Provider	Loan Amount	Interest Rate (Avg)	Processing Time	Best For
HDFC Bank	₹50,000 – ₹50 lakh	11.90% – 21.35%	3–7 days	Retail/Service SMEs
Bajaj Finserv	₹1 lakh – ₹45 lakh	17% – 28%	48 hours	Fast disbursal, no collateral
Axis Bank	₹50,000 – ₹50 lakh	14.25% – 18%	3–5 days	Manufacturing & Traders
SBI SME Loan	₹10 lakh – ₹100 crore	8.65%+	7–10 days	Government-linked businesses
ICICI Bank	₹50,000 – ₹40 lakh	12% – 22%	3–6 days	Startups & Retail
Lendingkart	₹50,000 – ₹2 crore	15% – 27%	72 hours	Online-first, MSMEs
KreditBee (for small ticket)	₹10,000 – ₹2 lakh	18% – 30%	Instant	Early-stage entrepreneurs

Eligibility Criteria (General Overview)

Requirement	Details
Age	21 to 65 years
Business Vintage	1+ years (some accept 6 months)
Annual Turnover	₹10 lakh+ (varies by lender)
Credit Score	650+ preferred
Documents	PAN, Aadhaar, GST, ITRs, bank statements, business proof

Documents You’ll Usually Need

PAN Card (Personal & Business)
Aadhaar Card
Business Registration Certificate
Last 6–12 months bank statements
GST Returns
ITR (past 1–2 years)
Financials (if available)

How to Apply for a Business Loan Online (Step-by-Step)

Shortlist the provider based on your business type and need.
Visit their official website (links below).
Fill the loan application form.
Upload scanned documents.
Wait for approval/disbursal call or email.

Choosing The Best Credit Card for Building Credit in 2025

Official Links to Apply (2025)

Apply at HDFC Business Loans
Apply at Bajaj Finserv
Apply at SBI SME Loans
Apply at Lendingkart
Apply at KreditBee

Or, list your financial consultancy on VyaparGrow to reach businesses looking for funding.

Bonus: Government Schemes You Can Leverage

MUDRA Loans (Under PMMY) – Up to ₹10 lakh for micro businesses
Stand-Up India Scheme – ₹10 lakh to ₹1 crore (for SC/ST/women entrepreneurs)
CGTMSE – Credit Guarantee without collateral

Pro Tips for First-Time Applicants

Check your CIBIL score before applying
Avoid applying to multiple lenders at once (it hurts your score)
Maintain proper banking hygiene (no cheque bounces)
Always compare the total cost of loan (not just interest rate)

List Your Loan Services on VyaparGrow

Are you a loan agent, NBFC, or financial advisor? List your business for free on VyaparGrow and connect with thousands of entrepreneurs searching for funding.