Check how much business loan you can get based on your turnover, profit, DSCR, and CIBIL score — with MSME, term loan and working capital options.
Debt Service Coverage Ratio = Monthly Net Income ÷ (New EMI + Existing EMIs). Lenders need DSCR ≥ 1.5. This calculator shows your estimated DSCR to help you understand bankability before applying.
| Lender / Scheme | Rate | Max Amount | Min Vintage | Min Turnover | Best For |
|---|---|---|---|---|---|
| SBI SME Loan | 10.5–13% | ₹25 Crore | 2 years | ₹50L | Established businesses |
| HDFC Business Loan | 11–24% | ₹75L (unsecured) | 2 years | ₹40L | Small businesses |
| Mudra Loan (Tarun) | 7–12% | ₹10L | Any | None | Micro enterprises |
| CGTMSE (MSME) | Bank rate | ₹5 Crore | New/old | None | No collateral MSME |
| Bajaj Finserv | 14–30% | ₹80L | 1 year | ₹12L | Fast disbursal |
| Lendingkart / FlexiLoans | 16–28% | ₹2 Crore | 6 months | ₹12L | New-age MSMEs |
Business loan eligibility in India depends on several factors: annual turnover, net profit, years in business (vintage), credit score of promoters, existing debt obligations (DSCR), and availability of collateral. Banks typically lend 3–6× annual net profit for unsecured loans and up to 80% of collateral for secured loans.
Yes — Mudra Shishu loans (up to ₹50K) and Kishor loans (₹50K–₹5L) are available even for new businesses. NBFCs like Lendingkart require only 6 months of business history. SIDBI schemes also support early-stage businesses. However, collateral or personal guarantees are usually required for larger amounts.
Term loan is a fixed lump sum with EMIs, used for capital expenditure (machinery, expansion). Working capital loan (CC/OD) is a revolving facility for day-to-day operations (inventory, receivables). WC loans have higher flexibility but usually higher rates. Most businesses need both.
Yes — business loan interest is fully deductible as a business expense under Section 37 of the Income Tax Act. This makes business loans significantly cheaper in post-tax terms. A 15% loan rate at 30% tax slab = effective cost of 10.5%.
Most banks will not sanction unsecured loans to loss-making businesses. Options include: secured loans against property/FD, peer-to-peer lending, NBFCs that use alternative data (GST, bank statements), or government ECLGS-type schemes during specific periods. Restructuring to show profit before applying is advisable.
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