RBL Bank Business Loan
RBL Bank Business loan is one of the best ways to finance your business needs. RBL Bank offers business loans in India with the motto of providing financial help to fulfil the requirements of short term business and working capital needs. Business financial requirements are capably addressed via these kinds of unsecured loans relying on business growth for the timely repayment of the loan. The Business Loan RBL (Ratnakar Bank) may be either working capital loan or a demand loan with the repayment tenure of up to three years.
The loan is offered to businesspersons or entrepreneurs having the wish of improving existing business related infrastructure or expanding their business. So, these loans are used for various business requirements by the people of India. At our website, you can check RBL Bank business loan eligibility and RBL Bank EMI calculator for free. Stay updated on this page, Loanbaba.com provides all the information about RBL Bank business loans:
|RBL Bank Business Loan Details updated on|
|Loan Amount||Rs.10 Lakhs upto Rs.35 Lakhs|
|Loan Tenure||12 to 60 months|
|Processing Fee||2% to 3% of the principal borrowed|
|Interest Rate||Base rate 20.00% per annum|
|Foreclosure||No charges. Allowed after the initial 12 EMIs|
Why Apply for RBL Business Loan?
Below-mentioned are the reasons for applying with RBL for a business loan.
- You can avail unsecured as well as secured business loans as per requirements.
- Flexible tenure up to 84 months as per the chosen loan scheme.
- Funding between Rs. 10 lakhs and Rs. 35 lakhs, depending on business needs.
- Various options of repayment as per your suitability.
- Simple documentation is needed and the business loan in RBL Bank then gets processed faster.
- The customers can pay off the loan in easy instalments every month and can repay it via auto debit or PDC or ECS.
Features of Business Loans at RBL Bank
The following key points will help you understand the features and benefits of the business loans RBL Bank:
- Any individual, sole proprietorship, partnership firm, professional and Pvt. Ltd. companies that also includes closely held public ltd. companies, with a business having enough revenue and profit from last three years.
- He/she should possess at least 3-5 years of experience in same business line with at least 3 years of operation and establishment in same city. If the applicant is a self employed professional, then he/ she must possess at least four years of post qualification experience
- The yearly turnover of the business should be minimum Rs. 25, 00,000, and in service/professional sector, the total receipts of the applicant should be at least a total of Rs. 60 lakhs.
- The applicant should own either an office or residence in his/her name or jointly with members of the family or should be staying at a place that is owned by any immediate member of the family.
Documents Required to Apply for RBL Business Loan
Below-given is a list of documents needed for RBL loan for business.
- Recent passport-sized photographs of all the applicants of the business loan RBL.
- Any one of the government recognized address proof is necessary such as electricity bill, telephone bill, driving licence, voter ID, passport, bank statement, rental agreement, registered lease deed or sale agreement, etc.
- PAN Card is mandatory for company, individual, or partnership firm.
- Any one of the government recognized identity proof is also necessary, such as driving licence, Aadhar card, passport, voter ID, etc.
- Proof of business continuity that proves the business vintage of at least 5 years. The document could be sales tax challan, bank statement, IT return, certificate of incorporation, shops and Est. Certificate, partnership deed, etc.
- A letter that certifies the final use of the business loan funds. This should be printed on the business letterhead.
- Ownership proof of the office or residence in the name of applicant or together with family members.
For Sole Proprietorships/Self-Employed Professionals/Self-Employed Individuals
- The borrower’s main account’s bank statements of the last 6 months. Bank statements of at least the last 3 months of all other bank accounts.
- Latest audited financials and ITRs of the recent 2 years.
- Profit and Loss A/c, balance sheet, computation of income with all other schedules, etc.
- For self-employed professionals additional proof for education is required. So such applicants have to submit their Degree certificate and professional qualification certificate.
For Private Limited Companies/Partnership Firms
- Partnership authority letter and Partnership deed for partnership firms
- Certificate of Incorporation for companies
- Latest audited financials and ITRs of the recent 2 years.
- Profit and Loss A/c, balance sheet, computation of income with all other schedules, etc.
- Latest shareholding patterns for public ltd. or private ltd. companies.
- Memorandum and Articles of Association and Board Resolution from the company
RBL Bank Business Loan Interest Rates
The RBL Bank business loan interest rate: Base rate is 10.65% per annum and prime lending rate is 16.25% per annum, but varies as per individual profile. Current rate of interest is 20% per annum. The applicable rate of interest majorly depends on your business financials, loan amount, tenure, repayment capacity, and other factors. Another factor that can determine the interest rate of the business loan is the legal structure of the business. For example, a small business with sole proprietorship may qualify for a higher rate of interest than a business with an incorporated structure.
Types of RBL Business Loan Interest Rates
There are also two types of interest rate that may apply to business loans, namely diminishing rate of interest and flat rate of interest:
- In diminishing rate of interest, every month you pay the EMI and the instalment contains component of both the interest and principal. Now the interest for the next month will be calculated only on the principal borrowed. So, as you pay the EMI, every month, the instalment amount will reduce.
- In flat rate of interest, the interest will be charges on the original principal borrowed. Each month, the EMI will thus, remain the same, but, interest paid will be more.
Keep a check on this page to note the updated RBL Bank business loan interest rate for the current year.
RBL Bank Business Loan EMI Calculator
EMI is equated monthly instalment is an amount to pay every month towards repayment of a loan till its tenure’s end. As per the current rate of interest of 20%, the lowest EMI amount on RBL business loan is Rs. 3,716.
- Loan Amount: EMI will be higher, if the loan amount is also high. For instance, if you borrow Rs. 1 lakh for 36 months at 20% rate, then the EMI will be Rs. 3,716. But, if you borrow Rs. 10 lakhs for 36 months at 20% interest rate, then the EMI amount will be Rs. 37,164.
- Rate of Interest: EMI will be lower on a lower rate of interest and vice-versa. For 36 months tenure, at 20% rate per annum, EMI for Rs. 1 lakhs will be Rs. 3,716, while that on a rate of 22% will be Rs. 3,819.
- Tenure of the Loan: Shorter the tenure, lower will be total interest payout, but EMI amount will be greater each month. Shorter tenure helps to reduce the loan cost. But, if you want the EMI to fit your pocket as per your financial situation, you can select a longer tenure to pay the EMIs smoothly. For instance, at 20% interest rate per year, the loan EMI will be between Rs. 9,263 and Rs. 3,716, on tenure 12 months to 36 months.
RBL Bank Business Loan Eligibility Calculator
Business loan eligibility may differ from one candidate to another. You can also use free-of-cost business loan RBL Bank loan eligibility calculator at Loanbaba.com. The eligibility criteria for loan for business are discussed below:
- The applicant for business loan RBL Bank needs to meet the age requirement and possess all necessary identity and profit/revenue proof etc required applying for the loan.
- He/she meet the requirement for company credit score and should not be under too many debts.
Types of RBL Bank Business Loans
RBL Bank has business loan schemes for all kinds of professionals. The amount taken as loan can be used for either multiple or specific purposes.
1. RBL Business Loan (Standard Scheme)
This is a perfect loan for short-term financing of 12 months to 36 months. You can borrow between Rs. 10 lakhs and Rs. 35 lakhs. No collateral is needed to avail this loan.
- This loan can be provided to self-employed professionals, partnership forms, sole proprietorships, self-employed individuals, and private limited companies and closely-held public limited companies, with at least 3 years of profitable business.
- At the time of loan application, the applicant must be at least 27 years age, and at the time of loan maturity the person’s age must not exceed 65 years.
- In the same line of business, at least 5 years experience is needed. Business establishment and operation must be for at least 3 years in the same city.
- 4 years of post-qualification experience is mandatory for self-employed professionals.
- Applicant should have ownership proof for residence or office in his/her name or jointly with family members residing in the owned amenities.
2. Unsecured Small Business Loan
Let your micro enterprise scale new heights with funds from the RBL Bank. The loan is collateral free. You can borrow up to Rs. 10 lakhs on 12 months to 36 months tenure. The bank offers quick and simplified process for the loan at attractive interest rates.
- If you are an individual, or a proprietor, or own a proprietorship firm, then you can apply for this loan.
- Minimum age requirement is 25 years, and maximum age at loan maturity must not be over 65 years.
- The business must have 3 years vintage with proven stability in the current business/residence address.
- You must have 3 years of experience in the current business.
- For funding over Rs. 3 lakhs, you should have a proven track record of at least one loan of 6 months vintage, such as a home loan, vehicle loan, EMI based loan, etc.
3. Secured Small Business Loan
You can apply for a secured small business loan by submitting relevant collateral to RBL. The funds can be used to meet requirement of working capital, repairs, renovations of existing business unit, purchase of equipment or machineries, etc.
- Borrowing amount is up to Rs. 20 lakhs for 12 months to 84 months.
- If you are an individual, a proprietor, or have a proprietorship firm, apply for this loan.
- Minimum age requirement is 25 years. The age must not be over 65 years at the time of maturity.
- Residential as well as commercial property is acceptable as collateral.
- Property age must be less than 50 years. Ownership of the collateral property must be self/co-borrower/blood relative.
- Assessment of the loan eligibility will be based on Bank statements/ Kachha Pukka Bills / VAT / ITR.
- Property must be approved by designated authority. Such as if the property is based in urban area, it must be approved by Development Authority, if based in rural area, must be approved by the Gram Panchayat.
Repayment of RBL Bank Business Loan
You can repay the loan in the following ways:
- Electronic Clearing Service (ECS): If you do not hold an account at RBL, then opt for ECS (Electronic Clearing Service). Here, you provide permission to the bank to directly withdraw funds/EMI payment from your specified bank account, automatically every month.
- Standing Instruction (SI): If you already have an account at the RBL Bank, then you may opt to pay EMI through Standing Instruction. Here, the bank will automatically debit the EMI amount on the EMI date every month. You have to specify your RBL account to the bank for this purpose. This way, you can save from manually paying the loan, and let the bank take care of repayment deduction.
- Post-Dated Cheques (PDCs): You can submit post-dated cheques to RBL for the duration of the tenure. So, the bank every month, will deposit each cheque on the specified EMI date. This method of EMI payment is only chosen of SI and ECS facilities are unavailable, because cheques can be lost or damaged in long duration tenure.
Why Apply for RBL Bank Business Loan on Loanbaba.com?
At Loanbaba, you can compare and apply for business loans online. You can check out several small business loan schemes by RBL Bank and go through all their features such as quantum of loan, amount of loan, processing fees, interest rates, and other conditions, at one page. You can also quickly apply for RBL Bank Business Loan online on our website without having to visit the branch. It is simple and easy, and you can upload all the required documents online. Disbursal is done at the soonest, and you can keep a track of your loan application on the website.
How to Apply for RBL Business Loan on Loanbaba?
You can apply for business loan RBL Bank or any other bank/NBFC business loan at Loanbaba.com within a few clicks.
Frequently Asked Questions about RBL Bank Business Loans
Here are the RBL Bank Business Loans FAQs.
1. What are the RBL Bank Business Loans limits?
On the basis of applicant's credit worthiness, documents' validity and securities' value, the bank can offer loan that can range from ten lakh to thirty five lakh rupees.
2. What are the age criteria for business loan RBL Bank?
The minimum age of the applicant must be 27 years at the time of sanctioning of the loan and maximum 65 years when the loan is matured.
3. What is the Documentation required for RBL Business Loan?
You will require PAN Card if you fall in the category of Individuals, Companies and Partnership Firms. You will also need Proof of Identity- Driving License, Voter ID, or Aadhaar Card or Passport.
4. What Are the Fees and Charges for the loan?
Below-mentioned are the charges for RBL loan for business.
|Charges for late EMI payment||2% additional interest per month|
|Charges for Cheque Swapping||Rs.250|
|Charges for Cheque Bounce||Rs.250|
|CIBIL Report Charges||Rs.50|
5. What is the Required Credit Score?
To qualify for the loan, you must have CIBIL score at least 700+ or 750+. Your credit history will be scrutinized to know how regular you have been with repayments, to understand your financial track record.
6. What Affects the RBL Business Loan Interest Rates?
Below-mentioned are factors that influence the business loan interest rates RBL:
- Track record of the business
- Type of business: Partnership, proprietorship, closely-held public limited company, or a private limited company
- Business turnover
- Profit generated by the business
- Business cash flow
- Age of the applicant
- Credit score of the applicant and the company
- Repayment capacity of the applicant
7. Are There Loans against Mortgage Property?
Business Loans of up to Rs. 10 Crores could be provided by the RBL against mortgage of property.
8. How to Boost Eligibility for RBL Business Loan?
To increase RBL business loan eligibility for yourself, maintain a positive net worth and a strong credit score, for self, and the business. Have a lower financial liability, like fewer ongoing loans, etc. Do not apply for several loans at a time, and keep a record of all the required audited documents for faster processing of the loan.
Disclaimer: Information is gathered from secondary sources and meant for reference only. Loanbaba is not a channel partner of RBL Bank.