Starting or growing a business requires substantial capital, and in Delhi, one of India’s largest economic hubs, businesses are constantly in need of financial assistance. 

Whether you’re a startup, a small enterprise, or an established company looking to expand, finding the right business loan provider can be a critical decision for your business’s success. With a variety of lenders offering a wide range of loan products, comparing options can be overwhelming. 

To help you make an informed decision, we’ve rounded up some of the best business loan providers in Delhi and compared their offers based on loan types, interest rates, eligibility, and repayment terms.

1. HDFC Bank Business Loan

Loan Type: Unsecured Business Loan
Loan Amount: ₹50,000 to ₹40 Lakhs
Interest Rate: Starts at 10.75% p.a.
Repayment Period: Up to 4 years

HDFC Bank is one of the most trusted financial institutions in India, known for offering flexible and accessible loan options. Their business loans are unsecured, meaning you don’t need to provide any collateral, making it an excellent choice for small businesses and startups that may not have significant assets to pledge.

Pros:

• Quick processing and disbursal (within 4-5 working days)

• No hidden charges

• Minimal documentation required

• Flexible repayment tenure

Cons:

• Interest rates may be on the higher end for smaller loan amounts

• Strict eligibility requirements for higher loan amounts

2. ICICI Bank Business Loan

Loan Type: Unsecured Business Loan
Loan Amount: ₹50,000 to ₹50 Lakhs
Interest Rate: Starts at 10.99% p.a.
Repayment Period: Up to 5 years

ICICI Bank offers competitive interest rates for business loans, and their process is streamlined, making it easy for businesses to access funds quickly. The bank also provides a range of loans tailored to different business needs, whether for working capital, expansion, or new projects.

Pros:

• Quick approval and disbursement process

• High loan eligibility

• Flexible repayment options

• Tailored loan products for specific business needs

Cons:

• Processing fees can be high

• Requires a good credit score for larger loan amounts

3. Bajaj Finserv Business Loan

Loan Type: Unsecured Business Loan
Loan Amount: ₹1 Lakh to ₹30 Lakhs
Interest Rate: Starts at 13% p.a.
Repayment Period: Up to 8 years

Bajaj Finserv has built a reputation for providing flexible financial solutions, particularly for small and medium-sized businesses. Their unsecured business loans come with a relatively lower processing fee and can be availed with minimal documentation. Additionally, Bajaj Finserv offers tailored loan options for entrepreneurs in various sectors, including retail, manufacturing, and services.

Pros:

• Quick disbursal, often within 24 hours

• No collateral needed

• High loan eligibility based on your business’s cash flow

• Customizable loan amount and tenure

Cons:

• Interest rates can be higher than some traditional banks

• Not available for businesses that have been operational for less than 3 years

4. Shiv Nadar Foundation – Nadar Business Loans

Loan Type: Micro and Small Business Loans
Loan Amount: ₹50,000 to ₹10 Lakhs
Interest Rate: Starts at 12.5% p.a.
Repayment Period: Up to 3 years

The Shiv Nadar Foundation is making a mark in the world of micro-financing with a special focus on smaller businesses in Delhi and surrounding regions. They provide low-interest loans aimed at empowering local entrepreneurs, particularly in underserved areas.

Pros:

• Affordable interest rates

• Focus on empowering micro and small businesses

• Loans tailored to businesses in underserved sectors

• No hidden charges

Cons:

• Loan amounts are on the lower end

• Limited eligibility for newer businesses

5. RBL Bank Business Loan

Loan Type: Unsecured Business Loan
Loan Amount: ₹1 Lakh to ₹35 Lakhs
Interest Rate: Starts at 12% p.a.
Repayment Period: Up to 4 years

RBL Bank’s business loans are an excellent option for businesses seeking flexibility in their loan terms. With quick processing and the absence of collateral requirements, RBL Bank provides seamless financing options for both established and startup businesses.

Pros:

• Fast loan approval and disbursal

• High loan amounts with flexible repayment options

• Minimal documentation

• No collateral required for loans below ₹25 Lakhs

Cons:

• Interest rates are relatively higher compared to traditional banks

• Strict eligibility criteria for larger loan amounts

6. Tata Capital Business Loan

Loan Type: Unsecured Business Loan
Loan Amount: ₹75,000 to ₹30 Lakhs
Interest Rate: Starts at 13% p.a.
Repayment Period: Up to 5 years

Tata Capital offers unsecured business loans designed to help businesses manage their working capital, fund expansion, or manage cash flow. Their offerings are known for competitive interest rates and minimal documentation. The loan application process is fast, and funds can be disbursed in as little as 48 hours.

Pros:

• Competitive interest rates

• Fast loan approval and disbursal

• Flexible repayment tenure

• Minimal paperwork

Cons:

• Higher interest rates for smaller loan amounts

• Strict eligibility requirements

Key Factors to Consider When Choosing a Business Loan Provider in Delhi

1. Loan Amount and Eligibility:
Ensure the provider offers a loan amount that suits your business needs. Check the eligibility criteria carefully, as some lenders may require a certain number of years in operation or a minimum annual turnover.

2. Interest Rate:
Interest rates can vary significantly between lenders. Compare the rates offered and consider how they will impact your repayments over time. Some institutions may offer low rates but charge higher fees, so be sure to factor this in.

3. Loan Tenure:
Choose a provider that offers flexible repayment options to match your cash flow situation. Shorter loan tenures typically mean higher monthly payments, but longer tenures can ease the repayment burden.

4. Fees and Charges:
Always inquire about processing fees, prepayment charges, and late payment penalties. While the interest rate is a major factor, hidden fees can add up and increase the overall cost of borrowing.

5. Loan Disbursement Time:
If you need funds urgently, choose a lender known for quick approval and disbursal times. Some banks and financial institutions can disburse funds within 24-48 hours, which can be a game-changer for time-sensitive needs.

Conclusion

Choosing the right business loan provider in Delhi is critical for the success of your business. By comparing interest rates, loan amounts, repayment terms, and other factors, you can find a lender that aligns with your needs and financial goals. Whether you choose a traditional bank like HDFC or ICICI or opt for a digital lender like Bajaj Finserv, make sure to do thorough research and pick the one that offers the best value for your business.