Business Loan: SBI And Tata Capital Comparison
Business loans are always needed by the owner to finance various needs of the business. There are various types of commercial loans offered by the banks to tailor different needs of the business owner. There are many banks that offer commercial loan to the business owner on accepting preset conditions of the granted loan. The loan is sanctioned by the banks is unsecured and business owner is responsible for repaying the loan. In the case of default, the business stands liable as an entity rather than a business owner as a person. In the other way, the lender has no right to acquire your personal property towards the payment of debt. However, compare between different lending institutions to make an informed decision.
Most of the business owner are confused while making a choice between the private lending institution and banks to avail commercial loan for their business. Let’s compare between top choice in the banks SBI and private lending institution TATA capital
The interest rate offered by the lending institutions stands as key criteria for the business owners when it comes to comparison between banks and private lending institutions.
The interest rate of commercial loans in SBI is 11.20% -16.30%. The interest rate on the commercial loan is tailored per profile of the customer.
Interest rate of Tata Capital is 11.99% -19.50%, the lender takes your repayment capability and credit score while deciding the interest rate on the loan. Both business credit score and personal credit score are considered.
Any salaried individual and self-employed professional or business owner with minimum two years of experience will stand eligible to apply for a loan here. You can get a minimum of 24000 in urban areas and 10,000 in rural areas. The maximum amount that can be availed through SBI commercial finance is 12 times the net income of the individual or maximum of 10 lakhs.
Any business owner can get the property if the age is between 25-65 years and should have a business running for 2 years.
The bank has lowest processing fee in the industry which amounts to 2%-3% of the loan amount.
The processing fee of TATA capital starts 999 onwards.
Fetching the business loan from SBI will help you enjoy low-interest rates and processing fee when compared Tata Capital.
You will get an unsecured business loan up to 50 lakhs without pledging collateral. You have flex repayment options like setting up Flexi EMI plan, Step down Flexi EMI plan and bullet Flexi EMI plan. All the existing customers will have pre-approval for the loan depending on their eligibility.