Best business loan providers in India
Business lending in India spans banks, NBFCs, and fintech lenders. Each occupies a different niche of business size and vintage. Below is a practical ranking based on rate, speed, and MSME-friendliness.
By Aditi Menon·Editor-in-Chief·reviewed by editor
Last updated: 15 June 2025
Ranked shortlist
| Rank | Lender | Rate range | Loan size | Best for |
|---|---|---|---|---|
| 1 | HDFC Bank | 10.75% – 18% | ₹50k – ₹75L | Established MSMEs (3+ yr vintage) |
| 2 | SBI (SME schemes) | 10% – 15% | ₹1L – ₹50 cr | Larger MSMEs; CGTMSE-backed loans |
| 3 | ICICI Bank | 11% – 18% | ₹50k – ₹50L | Digital MSMEs; existing ICICI relationship |
| 4 | Bajaj Finserv | 11% – 19% | Up to ₹50L | Fast disbursal; ‘24-hour' approvals |
| 5 | Lendingkart | 15% – 25% | Up to ₹2 cr | New businesses; 12 months of GST filings |
Choosing by business stage
- Business ≤ 1 year old — Mudra loan or Lendingkart
- Business 1-3 years, GST-registered — Bajaj Finserv or ICICI
- Business 3+ years, audited financials — HDFC or SBI
- Manufacturing / large working capital — SBI CGTMSE-backed loan
What lenders actually check
Business vintage, average bank balance, GST filing consistency, CIBIL commercial rank (CMR 1-4 preferred), and promoter's personal credit score. A clean file across all five gets you the lowest rate at the lender of your choice.