How to Get a Small Business Loan in India
Explore the easiest way to get a small business loan in India. Learn key eligibility criteria, top lenders, and tips for faster approval.
Anjali Singh
Assistant Manager
Published Date:Oct 8, 2025
MY MUDRA at GFF Mumbai 2026Booth No. R23, Pavilion9–11 Sep 2026Meet Us & Explore Smarter Financial Solutions
Explore the easiest way to get a small business loan in India. Learn key eligibility criteria, top lenders, and tips for faster approval.
Anjali Singh
Assistant Manager
Running a small business gives you rewards. But it often comes with financial challenges. Here, small business loans can give you the support you need. It can help you to buy equipment and manage your daily needs. Knowing how to get a small business loan in India helps you prepare better.
Let's look at what small business loans are and why they can help you.
A small business loan is a type of funding. It is made to help small business owners like you. It can help you to meet financial needs. You can use it for working capital, machinery, inventory, hiring staff, etc. These loans are offered by banks and NBFCs. It usually comes with fixed repayment schedules.
Taking small business loans can help you grow at your own speed. It does not put pressure on your finances. Here are some reasons why these loans matter:
At platforms like My Mudra, you get to explore different banks and NBFCs all in one place, making the process more convenient for you.
Many lenders in India offer small business loans. Since each comes with its own benefits, you should compare them before you apply.
Here are some of the top providers:
|
Lender |
Loan Amount (₹) |
Benefits |
Best For |
|
HDFC Bank |
Up to 50 lakhs |
Quick disbursal and minimal documents |
You get fast access to funds. |
|
ICICI Bank |
Up to 40 lakhs |
Flexible repayment options and balance transfer |
If you are looking for flexibility. |
|
Axis Bank |
Up to 30 lakhs |
Prepayment options and competitive rates |
For good credit borrowers. |
|
Bajaj Finserv |
Up to 45 lakhs |
Pre-approved offers and long tenure up to 84 months |
You can use it for longer repayment needs. |
|
Tata Capital |
Up to 35 lakhs |
Customised plans and online eligibility check |
For first-time applicants. |
Here is how to get a small business loan:
Lenders want to see how much money your business makes, how long you have been running it, and what your credit score looks like. Make sure your papers clearly show steady growth, and they should also prove that you can repay the loan on time.
You can compare banks and NBFCs. It is based on interest rates, tenure, and processing fees. Fintech partners like My Mudra can make this comparison simple for you.
Keep all your important documents ready. They can be financial statements, business registration certificates, KYC details, etc. The faster you provide them, the quicker your approval can happen.
Most lenders offer digital applications. You just need to fill in the details, upload documents and submit. The process is easy and faster than the old methods.
Once approved, the money goes directly into your bank account. You can use it to plan and grow your business.
Having small business loans online can make your financial journey easier. Here’s how:
These loans are suitable if you are:
You should be prepared to know how to get a small business loan in India. Your every step matters. So plan carefully and you can get the funds you need without stress.
Loans can help you grow your business. If you use them well, they can make your business stronger. You will also get long-term stability.
Also Read:
- How to Apply Small Business Loan Online in 2025
- How to Get a Loan to Start a Business in India
It depends on your bank. But most banks and NBFCs offer you between ₹10 lakhs and ₹50 lakhs.
You can get some loans without offering any collateral. However, larger amounts may require security.
Yes. Some banks and NBFCs give you loans for startups. But the criteria can vary.
My Mudra does not provide loans directly. Instead, we connect you with banks and NBFCs. We help you compare and apply in one place with ease.
Assistant Manager
Hey there, I'm Anjali Singh. With over 6 years of experience in finance, I specialize in creating content on banking, loans, and financial planning. My goal is to simplify complex financial topics and help readers make informed decisions through my articles.
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