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 94195 Users

    Fees & Charges

    Promised Interest Rate

    Customer Service

    Responsiveness

    Personal Loan BYTES FROM OUR KITCHEN
    rated 4.0/5.0 by 94195 users

    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
      "Satisfactory"
      0.5 4.0/5 "Great!"
      I have taken my personal loan was taken with HDFC Bank 2.5 years back. The loan amount was 1 lakh.The interest rate was quite satisfactory and the tenure period was 2 years .I am happy with the service and responses . There is no inconvenience faced and the pre closure is after 2 years .
      Was this review helpful? 0
      , new delhi
      Reviewed on Sep 21, 2018
    • HDFC Bank Personal Loan
      "Satisfactory"
      0.5 4.0/5 "Great!"
      I have taken a personal loan with HDFC Bank and the process of documentation process was very good. I got the loan on time and the rate of interest and processing charges is nominal and in all there are no issues to get the loan. A smooth process in all.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Sep 21, 2018
    • ICICI Bank Personal Loan
      "Satisfactory"
      0.5 4.0/5 "Great!"
      My personal loan was taken with ICICI bank 1 year back. I have taken 2.8 lakhs and the interest rate was very high . The tenure period was 4 years but i did pre closure . The chargers re very high for pre closuring the loan here but i had a smooth loan process . The documentation was quite smooth and hassle free.
      Was this review helpful? 2
      , bangalore
      Reviewed on Sep 20, 2018
    • HDFC Bank Personal Loan
      "Very good"
      0.5 4.5/5 "Excellent!"
      I have taken my personal loan with HDFC bank 1 year ba4ck. The loan amount was 4,25,000 and the interest rate was average The tenure period was 2 years . I had a good satisfactory experience . They have sanctioned the loan with the committed time also. There are no difficulties faced .
      Was this review helpful? 1
      , bangalore
      Reviewed on Sep 20, 2018
    • ICICI Bank Personal Loan
      "Process is nice"
      0.5 5.0/5 "Blown Away!"
      ICICI Bank has also offered me a personal loan. The customer services and response is good and there are no hassles in the process. They also offered me a good rate of interest and the processing charges are nominal too. The after loan services are good too.
      Was this review helpful? 1
      , jaipur
      Reviewed on Sep 20, 2018
    • Capital First Personal Loan
      "Hassle free process"
      0.5 4.0/5 "Great!"
      I have taken a personal loan with Capital first. The customer services and response is good. The process to get the loan is good and the rate of interest and processing charges is normal too. The after loan services are also satisfactory. Good overall.
      Was this review helpful? 1
      , greater noida
      Reviewed on Sep 20, 2018
    • HDFC Bank Personal Loan
      "Very good"
      0.5 5.0/5 "Blown Away!"
      My personal loan was taken with HDFC bank 1 year back. I have taken 2.5 lakhs and the interest rate was satisfactory . I am happy with the customer service and responses. There is no inconvenience faced and the process was completely hassle free.
      Was this review helpful? 1
      , chennai
      Reviewed on Sep 20, 2018
    • Citibank Personal Loan
      "Satisfactory"
      0.5 3.5/5 "Pretty good"
      My personal loan was taken with CITI bank 4 months back. The loan amount was 1,20,000 and the interest rate was very high . The customer service and responses was good. I have faced some difficult and they even detected some amount also. The processing fee was nominal.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Sep 20, 2018
    • ICICI Bank Personal Loan
      "Very bad experience and still sufferring"
      0.5 0.5/5 "Unacceptable"
      Took BT and top up loan from icici in July 2018 but received DD for balance transfer in third week of August. When submitted the DD to the other bank it got rejected as authorised signature is missing on it. The sales manager is not answering my call. I have already raised the complaint with customer care after which I received the DD.
      Was this review helpful? 3
      , bangalore
      Reviewed on Sep 19, 2018
    • HDFC Bank Personal Loan
      "good service"
      0.5 5.0/5 "Blown Away!"
      My jumbo loan was taken with HDFC BANK , the tenure period is 2year . They charge 15% of interest rate and it is too high. There is no processing fee with this bank and the best part they gave preclosere option . The service and process was good and smooth with this bank .
      Was this review helpful? 1
      , hyderabad
      Reviewed on Sep 19, 2018
    • Bank Bazaar Personal Loan
      "Normal Service"
      0.5 4.0/5 "Great!"
      I've been using the BankBazaar platform for a while. I have applied for a short term loan via BankBazaar. It was good, customer support support was good. BankBazaar is a convenient platform for comparing and choosing various financial products online.
      Was this review helpful? 1
      , faridabad
      Reviewed on Sep 19, 2018
    • Cashe Personal Loan
      "Awesome Service"
      0.5 5.0/5 "Blown Away!"
      I have taken a short term loan from the CashE. It was awesome, I got the loan on the same day with in hours. It was a very good experience and they processed the application very quick. It is a very good service for emergency financial aid.
      Was this review helpful? 1
      , faridabad
      Reviewed on Sep 19, 2018
    • HDFC Bank Personal Loan
      "good service"
      0.5 5.0/5 "Blown Away!"
      My jumbo loan was taken with HDFC BANK , their tenure period is 4year . The best part is processing fee is free with this bank and rate of interest is 1.3% which is nominal in the market . There is option preclosere with 3% on principal amount . Overall it is good to have HDFC BANK.
      Was this review helpful? 1
      , pune
      Reviewed on Sep 19, 2018
    • Aditya Birla Finance Personal Loan
      "Very Bad Experience with ABFL"
      0.5 0.5/5 "Unacceptable"
      1. Fake commitment of 30 min. disb. 2. Irritate by sending lots of sms and emails of remainder. 3. Breaks privacy by sending bank details in sms and email. 4. No reply from customer care email. 5. After regular payment we will get an overdue emi sms.
      Was this review helpful? 0
      , pune
      Reviewed on Sep 19, 2018
    • SBI Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have taken a personal loan with SBI and my loan experience was very good. The process was smooth and i received my loan amount on time. Customer service is good and they responded on time. The tenure period for this personal loan is 5 years.
      Was this review helpful? 2
      , secunderabad
      Reviewed on Sep 19, 2018
    • HDFC Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have taken a personal loan with HDFC bank and my experience was good, the loan amount was for Rs 1 lacs with nominal interest rate of 11.5%. Customer service was good with this bank and they followed up on time and the tenure period for this loan is 2 years.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Sep 19, 2018
    • HDFC Bank Personal Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It has been a very good experience i had with this personal loan and the loan amount which they had provided also had been satisfactory as well. The interest rate with them has been nominal when compared with the market rate. Their customer support also had been responsive where they had been helpful at times.
      Was this review helpful? 1
      , chennai
      Reviewed on Sep 19, 2018
    • Bank Bazaar Personal Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It has been a very good experience i had with Bank Bazaar and i had been using it for checking about the credit scores and the interest rate as well. I had been using the website of them and it has been easy in using it. Their customer support also had been responsive where there has been good follow up during the process of my personal loan.
      Was this review helpful? 1
      , chennai
      Reviewed on Sep 19, 2018
    • ICICI Bank Personal Loan
      "Very Good Service"
      0.5 5.0/5 "Blown Away!"
      I had chosen to go with them since one of my friend had suggested me about them. The process in getting this loan has been smooth and easy and the loan amount which they had provided also had been satisfactory. The interest rate with them has been nominal when compared with the market rate. Their customer support with them also had been responsive.
      Was this review helpful? 1
      , chennai
      Reviewed on Sep 19, 2018
    • Kotak Personal Loan
      "Good service"
      0.5 3.0/5 "Satisfactory"
      The experience i had in getting this personal loan has been okay, where the loan amount which they had provided had been sufficient and the interest rate with them also had been nominal. Their customer support also had been helpful at times and has been responsive. There has not been any hassle faced with them so far.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Sep 19, 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.