Business loans up to ₹5 crore — built for Indian MSMEs

Working capital, expansion, machinery or stock — collateral-free options for traders, manufacturers, retailers, doctors and professionals, pan-India.

12.75%p.a. onwards* · up to ₹5 Cr · collateral-free options
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Quick answers

Business Loan in India — the essentials

Updated: July 2026

How much business loan can I get without collateral?

Unsecured business loans in India typically go up to ₹75 lakh–₹1 crore from banks and NBFCs, based on turnover, banking and GST data. Larger amounts up to ₹5 crore usually need property or machinery as security. Most lenders fund 10–25% of your annual turnover unsecured.

What is the interest rate on business loans in 2026?

Unsecured business loan rates currently range from about 12.75% to 24% p.a. — banks at the lower end, NBFCs higher but faster. Secured business loans and CGTMSE-covered MSME loans can be cheaper. Your GST discipline and bank-statement health drive the final rate.

Can a new business get a loan?

Most lenders want 2–3 years of business vintage, but options exist for younger firms: loans against strong personal profiles, secured loans, equipment finance, or government-backed MSME schemes. WowCred maps your case to lenders whose policy accepts your vintage.

Eligibility

Do you qualify?

Indicative criteria — we routinely place borderline profiles with the right lender.

CriteriaTypical requirement
Business vintage2 – 3 years+ (exceptions possible)
Annual turnover₹10 lakh+ · higher for larger loans
CIBIL / CMRPersonal 700+ · CMR rank 1–6 preferred
Age23 – 65 years
Entity typeProprietorship, partnership, LLP, Pvt Ltd, professionals

Calculate my exact eligibility

Documents

Keep these handy

We collect everything from your doorstep and pre-check it before the bank sees it.

Salaried

  • PAN + Aadhaar of promoters
  • GST registration & 12-month GST returns
  • Last 12 months' current-account statement
  • Udyam registration (recommended)

Self-employed

  • Last 2 years' ITR with financials
  • Business proof (registration / licence)
  • Ownership proof for secured loans
  • Existing loan sanction letters, if any
Plan your EMI

Quick EMI check

₹2L₹3Cr
1 yr7 yrs

Assumes starting rate of p.a. — open the full EMI calculator for custom rates & schedule.

Your estimated EMI

Lock a lower rate and this drops further. Our average negotiation saves borrowers thousands per year.

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Fees, decoded

Charges you should know

ChargeTypical range
Processing fee1% – 3% of loan
Prepayment / foreclosure0 – 4% · often free after 6–12 months
Documentation / legal₹2,000 – ₹10,000 (secured loans)
WowCred service fee₹0 — free for borrowers, always

🎁 Processing-Fee Refund Offer* — on select disbursals through WowCred, up to 100% of the processing fee is refunded to you after disbursal. Offer terms.

By lender type

Where will you get the best business loan rate?

Lender categoryIndicative rate (p.a.)Best for
Private banks12.75% – 18%Established firms with clean banking
Public-sector banks11.5% – 15%MSME schemes, CGTMSE cover, lowest cost
Large NBFCs15% – 24%Speed, flexible documentation
Fintech lenders18% – 28%Short-tenure working capital, thin files
How it works

From "I need money" to money in bank

One short form. We do the running around.

Tell us once

2-minute form or a chat with Wow AI. No documents needed to see offers.

⚡ 2 minutes

We match & negotiate

Our engine screens 40+ lender policies; your dedicated manager negotiates the rate down.

⏱ within 30 min

You choose

Compare your best 3 offers side by side — EMI, rate, fees. Zero pressure, you decide.

🤝 your call

Get disbursed

Digital KYC and doorstep document pickup. Money lands directly in your bank account.

💸 24–72 hrs*
FAQs

Business Loan — your questions, answered

Term loan vs overdraft (OD) — what should I take?

Take a term loan for one-time needs like machinery or renovation (fixed EMI, lower rate). Take an OD/credit line for working capital — you pay interest only on what you use. Many of our MSME clients run both; we structure the mix for the lowest total cost.

Do I need GST registration for a business loan?

For unsecured loans above ~₹10 lakh, most lenders now underwrite on GST returns, so registration helps a lot. Smaller loans can be approved on bank statements and ITR alone. No GST? We'll route you to lenders with banking-surrogate programs.

What is CGTMSE and can it help me?

CGTMSE is a government trust that guarantees MSME loans so banks can lend without collateral — currently covering loans up to ₹5 crore. If you're Udyam-registered, we can target CGTMSE-friendly banks to get you a larger unsecured amount at a lower rate.

My personal CIBIL is low but my business is strong. Any options?

Yes. Options include secured loans against property or machinery, loans with a co-applicant, invoice/receivable finance, or NBFCs that weight business cash-flow over personal score. Tell us the real picture — matching messy files is our specialty.

How fast is a business loan disbursed?

Unsecured business loans: typically 3–7 working days after documents. Secured loans take 2–4 weeks due to property valuation and legal checks. WowCred's pre-check cuts rejections and resubmissions, which is where most delays actually happen.

Are business loan interest payments tax-deductible?

Yes — interest paid on a business loan is a deductible business expense under the Income Tax Act, reducing your taxable profit. The principal repayment is not deductible. Confirm treatment with your CA for your entity type.

Fuel your business, not your paperwork

Tell us your turnover and need — get matched to MSME-friendly lenders with offers in hours, not weeks.

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