Business Loan in India
A business loan is credit taken by proprietorships, partnerships, LLPs, or companies to fund working capital, equipment, or expansion. This hub explains the main product types, eligibility bars, and what banks actually look at when underwriting an MSME.
Last updated: 15 June 2025
Guides & explainers
Decision
Best business loan providers
Ranked banks + NBFCs for MSME lending.
Basics
What is a business loan?
Uses, structures, and how repayment works.
Basics
Types of business loans
Term loan, OD, invoice discounting, and more.
Eligibility
Business loan eligibility
Vintage, turnover, GST filings, and credit score.
Top providers
Related calculators
Common business-loan structures in India
| Type | Best for | Typical rate |
|---|---|---|
| Term loan | Machinery, expansion | 10% – 18% p.a. |
| Working capital / OD | Day-to-day cash flow | 9% – 15% p.a. |
| Invoice discounting | Businesses with delayed receivables | 10% – 16% p.a. |
| Mudra loan (up to ₹10 lakh) | Micro enterprises | 9.5% – 12% p.a. |
| CGTMSE-backed loan (up to ₹5 crore) | Collateral-free MSME lending | 10% – 15% p.a. |