Request received - loud & clear!
Returning you to where you were...
Corporate loans are sanctioned for an existing business and industrial house which has been in action for at least 5 years and has made profits for at least the last 2 years. In addition to that, the organisation will also be required to have a good credit rating and should have a good track record in terms of being a successful business. In case the organisation had loans in the past, the records in regard to the repayment of the credit are also taken into consideration.
There are a number of banks and financial institutions that offer corporate loans and some of them are listed below:
Name of Institution | Rate of interest (% p.a.) | Max. loan amount (Rs.) | Processing Fees (%) | |
---|---|---|---|---|
HDFC Bank | 15.65% to 21.20% | Up to 40 lakhs (Up to 50 lakhs in selected locations) | Starts at 0.99% |
Benefits of HDFC Bank corporate loan:
Name of institution | Rate of interest (% p.a.) | Max. loan amount (Rs.) | Processing Fees (%) | |
---|---|---|---|---|
DHFL | - | Up to 20 crores | From 1.25% to 2.00% (plus applicable GST) |
Benefits of DHFL corporate loan:
Name of institution | Rate of interest (% p.a.) | Max. loan amount (Rs.) | Processing Fees (%) | |
---|---|---|---|---|
IIFL | 18% to 25% | Up to 50 lakhs | Up to 3% of the loan amount |
Benefits of IIFL corporate loan:
Most businesses are constantly undergoing changes. The main aim is to serve the interest of their existing and potential customers in the best possible way. This requires constant upgradation and expansion of the corporates. Many a time, an organisation might have to wait for a long time before they gather enough funds to give form to their next step of expansion. This is where the corporate loans offered by banks and financial organisations come in to the scene.
You can apply for a corporate loan by choosing one of the following methods:
There are various factors which affect the eligibility of an applicant for a corporate loan. These factors can be summed up as:
The documentation process for corporate loans is quite simple and quick. The documentation process may vary from bank to bank. However, the documents that are usually required are listed below:
The features and benefits of business loans can be summed up as follows:
Ans: Yes, the rate of interest for business loans might be different for different applicants. The rates are usually dependent on factors such as the credit history of the applicant, his or her annual income, stability in banking activities, credit score, and so on. These factors determine the risk factor of the individual. The higher the risk, the higher will be the applicable interest rates.
Ans: No, it is recommended to check the terms and conditions of the lender before you apply for a loan. The lowest rate of interest might not always be the most beneficial loan for you. Hidden charges might arise which will make the overall loan amount quite heavy for you. It is a prudent move to check the charges and rates associated with the loan such as the processing fees, late fees, cost of administration, foreclosure charges, and so on, before applying for a loan.
Ans: The financial statements of the business such as the profit and loss statement, balance sheet, and so on are required by the lenders to find out the creditworthiness of the applicant. Having stability in these statements makes the applicant a low-risk candidate and thus helps in the approval of loans.
Ans: Yes, many lenders in India provide loans for small businesses.
Ans: The other factors that you should be aware of before applying for a loan from a particular lender are the processing fees for the loan and the pre-closure charges (if any). These charges might increase your total debt to an extent. To avoid that, it is recommended to check these charges beforehand.
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.
A GST rate of 18% will be applicable on banking services and products from 01 July, 2017.
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.
Gain an edge by connecting with us via email. We promise never to spam you.
Request received - loud & clear!
Returning you to where you were...
Psst... We'll ensure you're the very first to know the moment rates change.
We'll email you immediately! You snooze, you lose.