Multiple banks. Different interest rates. Call it a "conflict of interest".
  • Loading your search...
    Close

    Compare, check your eligibility and apply online instantly.

  • Commercial Loans is Rated as "Great!" by 95808 Users

    Fees & Charges

    Promised Interest Rate

    Customer Service

    Responsiveness

    Personal Loan BYTES FROM OUR KITCHEN

    Commercial Loans

    A commercial loan, as the name suggests, refers to a loan that is offered to a business by a financial institution. This type of loan can be utilised for commercial purposes. This loan is provided through a debt-based funding agreement between a business entity and a lender. Both banks and non-banking financial corporations (NBFCs) offer commercial loans to companies and firms. Commercial loans are not offered to individual loan applicants for personal reasons.

    These loans help corporations meet their financial expenses for their various activities. Some of the expenditures include working capital expenditures, operating expenses, etc. Commercial loans are sometimes known as business loans too. These loans are typically offered for a short tenure. The tenure can range from 1 month to 1 year depending on the company’s requirements.

    These commercial loans are very helpful to small businesses that may not have sufficient funds to take care of different financial requirements. Many small businesses may not be eligible to apply for regular loans due to eligibility criteria, high upfront fees and charges, and strict regulatory obstacles. Hence, small businesses have to rely on alternative debt products for financial assistance and these can be consumer credit, unsecured loans, commercial loans, a line of credit, term loans, etc.

    In India, one can choose from business loans and business installment loans provided by banks and NBFCs.

    Features of Commercial Loans

    • Commercial loans are provided to a business entity and not to individual consumers.
    • They can be utilised by organisations to handle financial expenses such as purchasing equipment, buying and installing machinery, purchasing inventory, buying office furniture, purchasing vehicles for company purpose, construction, renovation of office location(s), etc.
    • Commercial loans can be secured or unsecured in nature. If an organisation chooses a secured commercial loan, then they will have to provide a collateral or security to the lender. In this case, the interest rates will be lower as the level of risk is low for the lender. If a company wants to apply for an unsecured commercial loan, then the rate of interest will be slightly higher as the lender will face a higher level of risk since there is no security involved in this loan agreement. If you take a commercial vehicle or asset loan, this particular vehicle or asset will be hypothecated to your lender.
    • Commercial loans are provided for a short period. This can range from 30 days to 1 year. It is sometimes given for a longer tenure too. This will depend on the lender. When you apply for commercial equipment loans or commercial construction loans, you can choose a longer tenure for up to 4 or 5 years.
    • Commercial loans can cover revolving lines of credit, short-term debt, long-term debt, etc.
    • Commercial loans are offered at fixed interest rates or floating interest rates. If you have a fixed interest rate, your interest will remain fixed throughout the tenure. If you have a floating interest rate, your interest will fluctuate with changes in the market.
    • You can repay a commercial loan through post-dated cheques, Electronic Clearing Service (ECS), Standing Instruction (SI), etc.
    • Typically, when you make the last payment of your commercial loan, the asset that is hypothecated with your lender will now be in your name and you can revoke the lien of the lender on your company’s vehicle or asset.
    • Commercial loans also help companies in purchasing supplies, buying raw materials, funding production processes, handling payroll needs, etc.
    • Commercial loans can be taken for purchasing real estate properties too. These loans will be commercial mortgage loans that help a firm in purchasing commercial properties.
    • Commercial loans are sometimes provided to self-employed professionals or non-professionals so that they can purchase property or any other asset for their firm’s requirements. These individual loan applicants can be lawyers, doctors, engineers, architects, consultants, contractors, etc. and they will have to apply on behalf of their firm.
    • These loans can be utilised for expanding company operations too.

    Eligibility Criteria for Commercial Loans

    • Partnership firms, sole proprietorship firms, public limited companies, private limited companies, and self-employed professionals and non-professionals can apply for commercial loans or business loans in India.
    • The business entity that needs a commercial loan should have a good turnover. The turnover requirement will differ from lender to lender. You can check with your lender.
    • Each loan applicant should meet the minimum annual income requirement as a firm.
    • The firm should have been making profits for a certain period, which will be specified by the lender.
    • The company interested in a commercial loan should have been in business for a certain period, which will be mentioned by the lender.
    • The minimum age criterion for an individual who is applying on behalf of his or her firm is typically 21. The maximum age requirement is 65 years. This can change from lender to lender.
    Apply for Personal Loan

    Documentation Process for Commercial Loans

    While applying for a commercial loan, a firm or individual will have to compulsorily submit certain documents to the lender and they include:

    • PAN card for firms, companies, and individuals
    • VAT or GST statements for a certain period
    • Balance sheet
    • Income tax returns for a certain period
    • Profit and Loss statement for a certain period
    • Bank statements for a certain period
    • Proof of continuation in business. The company can submit trade license, sales tax certificate, Income Tax Returns, establishment certificate, etc.
    • Certified Copy of Partnership Deed
    • Sole Proprietorship Declaration
    • Board resolution
    • Certified true copy of Memorandum and Articles of Association

    Fees and Charges for Commercial Loans

    While applying for a commercial loan, a company or a self-employed individual will have to pay certain fees and charges. Apart from paying the interest rate, the loan applicant may have to pay loan processing fee, amortisation fee, stamp duty, cheque swapping fee, legal or incidental charges, cheque bouncing charges, late payment charges, pre-payment charges, etc. The charges will be mentioned to you by your lender before you apply for the loan. You can view your commercial loan policy document for full information about the various fees and charges.

    As a company, a commercial loan is a great financial instrument for meeting the various financial requirements extensively. While applying for a commercial loan, the organisation should prove that it has a regular, good cash flow. This will help the lender be confident that the borrower can repay the loan installments in a timely manner. In some scenarios, lenders may ask the loan applicant to take insurance for assets that have been purchased with the loan, especially if the assets are of high value.

    Personal Loan Reviews

    • HDFC Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      My experience was good with HDFC bank for personal loan, the loan amount was for Rs 3 lacs with nominal interest rate when compared to others. Customer service was good and they followed up on time. The tenure period for this loan is 4 years.
      Was this review helpful? 0
      , kolkata
      Reviewed on Nov 20, 2018
    • Kotak Personal Loan
      "Need to reduce ROI"
      0.5 5.0/5 "Blown Away!"
      I have taken a personal loan with KMB and my expeirence was good, the loan amount was for Rs 4 lacs with high interest rate when compared to other banks. Customer service was good and they responded on time. The tenure period for this loan is 5 years.
      Was this review helpful? 0
      , new delhi
      Reviewed on Nov 20, 2018
    • Bank Bazaar Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I have been using bank bazaar service from past 6 months, and i came to know about bank bazaar service through on line like i use to get credit report time to time on monthly bases, and they use to do instant call back and credit limit and loan getting good.
      Was this review helpful? 0
      , noida
      Reviewed on Nov 20, 2018
    • Early Salary Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I have holding my personal loan with EARLY SALARY bank a month ago , there rate of interest they have charge me i dont remember like it was 9 rupees per day i have charge as rate of interest and was nominal for me, they have given discount in processing fee, and i have got sufficient loan amount, there process was okay.
      Was this review helpful? 0
      , noida
      Reviewed on Nov 20, 2018
    • Bajaj Finserv Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      It was a best experience with Bajaj Finserv for personal loan, the loan amount was for Rs 63000 with 0% interest rate which is very good. Customer service was good and their response was on time. The tenure period for this loan was for 6 months.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 20, 2018
    • Bank Bazaar Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I have been using bank bazaar service from past 6 months, and i came to know about bank bazaar service through on line like i use to get credit report time to time on monthly bases, and they use to do instant call back and credit limit and loan getting good.
      Was this review helpful? 0
      , pune
      Reviewed on Nov 20, 2018
    • HDFC Bank Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      It was one of the best experience with HDFC bank for personal loan, it was done based on the stand approve basis. Loan amount was for Rs 1.5 lacs with nominal interest rate when compared to others. Customer service was good and the tenure period for this loan is 1 year
      Was this review helpful? 0
      , greater noida
      Reviewed on Nov 20, 2018
    • HDFC Bank Personal Loan
      "Need to reduce ROI"
      0.5 4.0/5 "Great!"
      My personal loan experience was good with HDFC bank, the process was quick and i received my loan amount on time. The loan amount was for Rs 1.6 lacs with high interest rate when compared to other banks. Tenure period for this loan was for 3 years.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Nov 20, 2018
    • HDFC Bank Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      My experience with HDFC bank for personal loan was good, rate of interest was nominal when compared to other banks. Customer service was good and their response was on time. The loan amount was for Rs 10 lacs with the tenure period of 60 months.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Nov 20, 2018
    • HDFC Bank Personal Loan
      "Not satiafctory service"
      0.5 3.0/5 "Satisfactory"
      My personal loan was taken with HDFC BANK , the processing fee they have charged me was nominal. The loan amount they have given me was sufficient and the rate of interest they have charge me was also fine . Overall it has been good experience with HDFC BANK .
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 20, 2018
    • HDB Financial Services Personal Loan
      "Not satiafctory service"
      0.5 3.0/5 "Satisfactory"
      My personal loan was taken with HDB INSTITUTION , the rate of interest and processing fees was too high with this bank . The tenure period is 5year and it is sufficient to me . They gave option of preclosere but it is applicable after 6month . Customer service is not up to the mark and there are no much additional charges.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 20, 2018
    • RBL Bank Personal Loan
      "Fastest Service"
      0.5 4.0/5 "Great!"
      I took personal loan with RBL, the interest rate is high but equal to other banks, the process was fast. I have pre approved loan based on the credit card, they taken some processing fee around 3000 for the amount of Rs.1 .20 lakh, they are fastest people, who lend me the money.
      Was this review helpful? 0
      , new delhi
      Reviewed on Nov 20, 2018
    • Bank Bazaar Personal Loan
      "Very Good website"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar has a very good domain and always they used to keep in touch with their customers for the other products which is more import. The services are very good in this website. Since 3 years, i have been using this website. One of colleagues has recommended me about the bankbazaar website.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 20, 2018
    • Bank Bazaar Personal Loan
      "Very Good website"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar has a very good domain and always they used to keep in touch with their customers for the other products which is more import. The services are very good in this website. Since 3 years, i have been using this website. One of colleagues has recommended me about the bankbazaar website.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 20, 2018
    • Citibank Personal Loan
      "Need to improve the communication"
      0.5 2.0/5 "Expected more"
      Actually i have not received the loan on time. Its been 15 days delay happened on the disbursal. I have not received any notification regarding the delay. There is no communication between me and my bank. Due to this i was supposed to sign a documents of other bank loan. Its almost 11.5% as a interest rate.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 20, 2018
    • Bank Bazaar Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I came to know about bankbazaar through mail, i applied for the loan from the link which i received from bankbazaar. Customer service was very good with bankbazaar and their response is on time. Website is easy and user friendly to use in bankbazaar.
      Was this review helpful? 0
      , kolkata
      Reviewed on Nov 20, 2018
    • ICICI Bank Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have my personal loan application approved with ICICI bank and the experience was good, the process took 2 weeks to complete. The loan amount was for Rs 60000 with nominal interest rate when compared to others. Customer service was fine with this bank and the tenure period is for 1 year.
      Was this review helpful? 0
      , kolkata
      Reviewed on Nov 20, 2018
    • Bank Bazaar Personal Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      It was a very good experience so far with bankbazaar, they provide good services when compared to others in the market. Customer service was good with bankbazaar and their response was prompt. Website of bankbazaar is easy to use and is user friendly.
      Was this review helpful? 0
      , new delhi
      Reviewed on Nov 20, 2018
    • Cashe Personal Loan
      "Need to reduce ROI"
      0.5 4.0/5 "Great!"
      My experience was good with CASHE for personal loan, the loan amount was sanctioned immediately after the verification process. Loan amount was for Rs 50000 with high interest rate when compared to others. Tenure period for this loan is 6 months and the customer service was good.
      Was this review helpful? 0
      , new delhi
      Reviewed on Nov 20, 2018
    • Bank Bazaar Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      This was my first time experience with bankbazaar and it was not up to the mark, initially the follow up was very good with bankbazaar but on later stage there was no proper follow up. The website of bankbazaar is easy to use and is user friendly.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Nov 20, 2018
    Common Loader Icon

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.