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RBL Bank Business Loan

Interest Rate starts from 17.50%

RBL Bank Business Loan Interest rates

Please Find the Detailed RBL Bank Business Loan Interest Rates

Up To 10,00,00010,00,000 Above
Manufacturer18.00%17.50%
Service Provider18.50%18.00%
Trader/Distributor18.50%18.00%

Features of RBL Bank Business Loan

Please Find the Detailed Features of RBL Bank Business Loan
Type Features
Processing Fee3.0%
Pre Closure ChargesAllowed
Part Payment ChargesNil
Min Tenure1 Years
Max Tenure5 Years
Min Age24 Years
Max Age60 Years
Min Loan AmountRs.5,00,000/-
Max Loan AmountRs.30,00,000/-

RBL Bank Business Loan Charges

Please Find the Detailed RBL Bank Business Loan Charges
Type Charges

Documentation For Business Loan

  • Filled Application form
  • Identity Proof (PAN CARD)
  • Address Proof
  • Last 2 years of Income Tax Documents
  • VAT/CST/ST Registration copies (if any)
  • 1 Passport Size colour Photographs
  • 6 months Bank Statements
  • Latest year business performance related documents.
  • Other loansanction letters and their Track (If existed)
  • Filled Application Form
  • Partnership deed
  • Firm PAN Card & Address Proof
  • All Partners Identity Proof
  • All Partners Address Proof
  • Last 2 years of Income Tax Documents
  • Last 6 months of Bank Statements
  • VAT/CST/ST Registration copies (if any)
  • 1 Passport Size colour Photograph for applicant
  • 6 months Bank Statements
  • Latest year business performance related documents
  • Filled Application Form
  • MOA/AOA and Incorporation certificate
  • Commencement of operation (if it is a Public Ltd Company)
  • Company PAN Card & Address Proof
  • All Directors Identity Proof
  • Last 2 years of Income Tax Documents
  • Last 6 months of Bank Statements
  • VAT/CST/ST Registration copies (if any)
  • 1 Passport Size colour Photograph for applicant
  • 6 months Bank Statements
  • Latest year business performance related documents
  • Other loansanction letters and their Track (If existed)
  • Passport
  • Driving License
  • PAN card
  • Photo credit card (with embossed Signature and last two months statement)
  • Banker's sign verification
  • PAN Card
  • Passport
  • License
  • School leaving certificate
  • Voter card
  • Birth Certificate
  • LIC policy (only for age Proof)
  • Latest salary slip
  • Current dated salary Certificate with latest form 16.
  • Latest year IT Returns with Tax Audit reports(For Self Employed applicants)
  • Latest year IT Returns with Tax Audit reports(For Self Employed applicants)
  • Bank statements of latest 2 months
  • 3 months bank passbook

RBL Bank Business Loan FAQ's

How much loan amount can I borrow in a Business Loan?

You can borrow loan amount from Rs.10 Lakhs to Rs.35 Lakhs depending on your eligibility basis the financial documents submitted, repayment capacity and loan amount limit in your respective location.

How will I repay my Business Loan?

"RBL Bank offer Business Loan as a term loan which can be repaid in easy EMIs (Equated Monthly Installments). EMI can be paid through ECS facility, Standing Instruction to debit your RBL Bank account or though Post Dated Cheques with your EMI amount. EMI amount can be calculated using ‘EMI Calculator’ "

For how many months can I borrow a Business Loan?

RBL Bank offer convenient repayment options from 12 to 36 months.

Is there any security that I need to provide to get a Business Loan?

RBL Bank offers Business loan as an unsecured loan and hence you do not need to provide for any Security or Collateral for availing a Business Loan.

Do I have to pay any Processing Fees or Charges to avail a Business Loan?

A processing fee of a maximum of 2% of the loan amount (plus Service Tax at the prevailing rate) is required to be paid. This fee will be deducted from the Loan amount at the time of the disbursal of your loan.

Is there an option to prepay the Business Loan earlier? Are there any charges?

No foreclosure is allowed before the loan has completed 6 months. However, you can prepay the business loan after having paid 6 EMIs with applicable foreclosure charges (plus Service Tax at the prevailing rate). Foreclosure charges of 5% of the principal outstanding will be charged, if you foreclose the loan before 12 months. Foreclosure charges of 3% of the principal outstanding will be charged post completion of 12 months of the loan. Loan can be foreclosed by paying the foreclosure amount through a Demand Draft / Cheque at any of the RBL Bank branch.

Are there any benefits of having a Current/Saving Account with RBL Bank for my Business loan?

You get the benefit of easier documentation if you have a Current / Savings Account with RBL Bank. You can avail paying your EMI through Standing Instructions to debit your RBL Bank Account for the loan. This will be taken into consideration at the time of disbursal of the loan.

About RBL Bank

"RBL Bank Limited (formerly known as The Ratnakar Bank limited) is a scheduled commercial bank Founded in August 1943. Head quarters located in in the Kolhapur region of Maharashtra. RBL is one of the oldest private sector banks in India. The Bank currently services approximately 14,00,000 customers.

RBL Bank offers specialized services for Corporate & Institutional Banking, Commercial Banking, Retail Banking, Agri & Development Banking and Financial Markets.

As of March 2016, RBL Bank has grown to a network of 197 branches and 362 ATMs across 13 Indian states"

RBL Bank Highlights

Rated as India's Best Bank (Growth) in the Mid-Sized Bank Segment, by Businsess Today, 2015
Rated as India's Best Overall Bank (Small Category)
Fastes Growing Small Bank by Business World-PWC Best Bank Survey 2015
Best Bank-priority Sector Lending (Private Sector), By Dun & Bradstreen Banking Awards, 2014, 2015
Best Indian Banker (Small-Sized), By Sunday Standards Best Banker Awards, 2013
Winner of the Best Core Banking Project, India by Asian Banker Technology Implementation Award, 2012

Business Loan Can Be Used For Many Purposes Like Below

Accelerate the Business Growth

For immediate Business Requirement

For Boosting Revenue

For Training the Manpower

Foreign Business Trips

New Business Contracts

Setting up a new branch

To Purchase Stock

Why Business Loans?

Owning a business is an exciting journey. When starting off there are many odds and ends to be met, once the business is set things will begin to takeoff. However nothing is possible in the business world without the right financing. Many business owners will review the financing options available to them, Business Loans are the best suitable for kind of your requirements.

As a business owner, your most difficult task is finding the money to operate your business. Taking the necessary steps to prepare for a small business loan can minimize the difficulty.

Learn what you need to know to clinch the loan deal.

You can get a loan for your business by proper preparation. The main requirements of attaining a business loan are your credit history, business plan, experience, education, and feasibility of the business you are expanding.

The most important task to obtain a business loan is to improve the business. Your business plan must answer the questions, a lending institution would ask for following.

1) How much money do you need for your business?:-
Estimate the plan for business expansion or requirement of your business, it should be for the business growth. Most of the young entrepreneurs in recent a days, wisely using the unsecured business loans from the banks to the their business growth. A small business loan with the clear repayment will ease your chances to have working capital limits with Banks.
2) Purpose of Business Loans?:-
You should be prepared the purpose why you require business loans, by nature business loans are costlier than the regular working capital facilities, and improper utilisation of the business loan will damage your future cash flows, which will lead to a bad credit history. To avoid this, proper planning to be must before availing a business loan with the banks/financial institutions.
3) Tenor of your business loan?:-
Generally business loans will be provided for min of 12 months to maximum of 48 months. You need to decide the tenor based on your repayment/cash flows capability, the higher loan amount will cause you for higher repayment tenor and EMI.
4) What will you do if you don't get the loan?:-
Let lenders know that rejection will not discourage you from starting or growing your business. You want to portray a confident and determined personality and you will not try lender after lender until you receive the money you need to get your business moving. As a business owner, you will need a certain degree of fortitude. Be confident and proud of your venture. Let lenders know you are in control and know what's best for you and your business. Understand that lending institutions need to make loans. But if you don't get one, don't get discouraged. Ask the lender why you didn't get the business loan. Learn from the answer, rectify and move on for other lenders.

The factors which will affect your business loan eligibility and rate of interest:

By nature business is require lot of money whether it is a new or existing to grow. It is necessary for each individual business is having a cycle where the initial investments to turned out to sale and by sale procedure we get profits. As a fundamental a business requires the funds from the initial step to final step of to receive profits. A successful business means to infuse the funds into business whenever it requires.

Generally loans to business entities are two methods, one is secured facility and other one is unsecured facility. Generally Secured Loans will be provided by the banks upon taking a sufficient collateral, however another way, banks will be provide unsecured business loans to the borrower based on the eligibility criteria without taking any collateral from the borrower. Generally Secured loans starts from Rs. 5 lakhs, and the max will be depend upon the proposal strength and the collateral coverage. Whereas Business loans will be starts from Rs. 2 lakhs and max will be capped as Rs. 75 lakhs based on the client risk profile. Since the business loans are by nature unsecured.

In a nut shell, when an entity applies business loan to a Bank/Financial Institute, to be ready with the following factors.

1) Business Model or Business Plan:-
A business model will help the bankers to understand about your business overview, it will give comfort on your business loan decision making. After business model, bank will calculate “as a entity what is the competitive advantage you are having with compare to the market”. A systematic business plan shows that you are serious about running and maintaining a profitable business.
2) Type of Business:-
Another common deciding factor that may affect your business loan by the bank/financial Institutions is your type of business. A “Business Type” is very crucial for In banks decision making. There are some businesses which are into speculative business, video parlors and detective agencies etc., these kind of businesses banks generally do not provide loans, as these entities will carry higher risk.

Banks always looks for the entities which are already well established in the market for at least 3-5 years and having minimum turnover of Rs. 1.00 Cr of annual turnover for last 3 years will have higher opportunity to get the business loans from banks.

3) Credit History:-
Unfortunately, if you are applying for a business and have a poor credit history or over-all credit rating score, it will negatively affect your business loan rate. In fact, you may have a hard time qualifying for a business loan with a bad credit history, Since most of the business loan by nature as a unsecured loans, banks will be in particular concentrate on the credit history of the entities and its promoters, it is suggested that before applying any business loans avail your credit history from CIBIL and apply, a good CIBIL Score can make you to get the interest rate benefit while processing of the business loan.
4) Length of Time in Business (Experience):-
If you are having high business vintage, higher opportunities of getting unsecured business loans from the banks / financial institutions. Those whose businesses survive beyond the three year mark have a better chance of qualifying for a decent business loan rate. Lenders are reluctant to sponsor loans at decent rates to those who are just starting a new business or who have never owned and operated a business before.
5) Your Business Structure:-
Another factor that may determine the rate of your business loan is how your business is legally structured. For instance, a small business that is established as a sole proprietorship may not qualify for a decent loan rate whereas a business that is structured as a incorporated may have higher chances of qualify for the decent loan, depending upon other factors too.

Interest rates

Rate of Interest will be based on bank/financial Institutions internal policies and terms. Generally Bank account conduct, reputation of the entity, repayment capability, credit history, Promoters Back ground and other credit related factors which can be evolve for Business Loans.

Tenor: from min of 12 months to Max of 48 months.

Interest Rate: from min 16(percent) to 22 (percent) .

Age: Min of 24 years to max of 55 years.

Repayment: Monthly EMI to be paid till the loan closure.

Repayment mode: By way of PDC, ECS or Standing Instructions.

Pre-Closure Charges: Will be applicable as per bank norms.

Expert Advice

Best Practices for Business Loan

Prepare carefully prior to applying for a loan. If a lender believes you have done a thorough job in presenting your request for a loan, it is more likely to have confidence in your management abilities and your company.
Go for business loans only on your immediate business requirement, apart from your working capital request.
Know how much money you are requesting and how your company proposes to pay it back.
Compare terms, conditions, and rates when Opt for a loan -- they can vary from lender to lender.
Provide your company’s financial documents available for the lender at your first meeting. The lender will be able to begin reviewing your request immediately.
Thoroughly check before accepting the loans terms and conditions, interest, prepayment charges details and other related information.
Improve the credit history and get the cheaper loans from the banks or financial institutes.
If you don’t take the time and energy to put your best foot forward, the lender will not have confidence in your management and decision making abilities.

Things not to do for Business Loan

Do not ask a banker "how much" money your company will qualify for. If you don’t know how much moneyyou need and how your company is going to repay the money, then the purpose will be differ from your business requirement.
Do not use unsecured Business loans for other than the business requirement. Since Business Loans are relatively costly with compare to the other loan products in the market.
The effect of the higher interest rate is an increased monthly payment, which can be more difficult for some businesses to manage.
If your business is younger than two years and it has not established a diverse credit profile in good standing, then try to avoid the Business Loan.
Do not delay on repayment of availed loan facility, which will affect your credit history, makes your another attempt will be more costlier bank funds.
Do not rush with the process.

Important points to be remember for Business Loans

1) A Great Idea isn’t Always a Great Business Idea::-
The first thing to know about getting a business loan is that having a great idea isn’t everything. Not all of them are business ideas that can work. Some are just great ideas. Great business ideas, on the other hand, are backed by solid plans that demonstrate viability. If you don’t have that, it’s a waste of your time to approach a bank looking to fund your idea.
2) Speak Your Business Plan::-
Your business plan should outline what you want to do and how you plan to do it. It should define whom you are marketing to, how you’re going to execute it/get it made and how you’re going to get paid, along with expected margins. There are many resources available to help you create your business plan, so do your homework before asking for a loan.
3) Honesty and Integrity Matter::-
Bank officers need to know they can trust you before they approve your loan. They’ll ask about your personal and business credit and your existing financials which will be needed to take a decision on your loan.
4) Find the Right Bank and Banker for You::-
When deciding which bank to approach for your loan, use your network in the business community for referrals. Find out what other entrepreneurs think. Then, when you meet with a bank (or more than one), also ask to meet with more than one loan officer. It’ll give you a better sense of the bank as a whole. One officer, for example, may know more about a specific aspect of your business while another is more familiar with your industry.
4) Small Business is Growing Strong::-
Small businesses are quicker to adapt. They do more with less and are often more innovative by their very nature. In a way, there’s never been a better time to be a small business entrepreneur. So get your ideas out there. Make a plan that’s viable, find your community bank lender and make it happen.

Business Loans Vs Working Capital Facilities

Business Loans Working Capital Facilities
Generally Business Loan are small tenor unsecured loans offered by the bank based on the requirement, conduct and credit history of the entity. Working Capital loans are related to business day to day operations, there is no limitation for the working capital facilities as per the entities financial performance and collateral capacity.
Business Loans are by nature it is a loan and need to repay the regular instalment till the loan will be cleared. Working capital Facility is a facility you can avail the regular day to day transactions for your business purpose, generally WCF will be sanctioned for 12 months tenor.
Business Loans can be used for any related works, and there is no restriction for usage of funds. WCF will be used only for business and business related purpose, there is a restriction on usage for facilities.
Business Loans will be only provide the fund based limits. Working capital facilities can be sanctioned for fund based or non fund based requirement.
Only one type of facility can be availed from the Business Loans from the bank Various types of facilities can be offered by the bank under WCF facilities.
Business Loans can be availed by small business owners. WCF facilities can be availed by small business owner to big corporate.
Maximum tenor of loan is 48 months offered by the banks. Maximum tenor will be 12 months based on the facility requirement.
Business Loans are costly than the WCF loans. Generally interest rates will be very from 18% to 21%. WCF are relatively cheaper than the Business Loans. Generally interest rates will be vary 13% to 15% as per bank internal policy.
Minimum of 3 years vintage will be required for the business loans. Min of 1 year vintage for calculation of eligibility will require for WCF.
Generally Business Loans will be used for unexpected requirement in business.. WCF will be used for regular activities of business.
Loan disbursement will be max 7-15 days from the date of application. Min of 15 days to max of 90 days will require for process the WCF request from the date of application.
Banks/Financial Institutions will prefer to provide the business loans to WCF customers. Banks will prefer to take more collateral to fund the WCF.
Interest will be on total loan outstanding and will be calculated on monthly basis. Interest will be calculated on daily basis outstanding and will be debited in account on monthly basis.