How to Get Business Loan in Kolkata - Upto 50 Lakhs @Low Interest Rate

Kolkata is a major port city across India, and it is well-suited for import and export in various neighbouring countries, including Nepal and Bangladesh. The Ganges river runs through it and provides a long coastline for the region. Moreover, the fisheries sector creates opportunities for various other sub-sectors, including cold storage, fish hatcheries, transportation, etc. 

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Business loans in Kolkata

It’s a well-established fact that fish farming or aquaculture is a significant business opportunity in Kolkata. In Kolkata alone, 80% of the population eats fish, including both urban and rural people. 

Suppose a middle-class man thought of commencing a business in fish farming, and according to the strong consumer preference in Kolkata, he opted to supply freshwater fish. 

Now, he has an opportunity to consume the majority market share but don’t you think the process of kicking off the business will require funds? 

Of course, though fish farming requires less capital investment, there are fixed and operational expenditures, including land, oxygen metres, tanks, ponds, vehicles and wages to the workers.  

Hence, the fisheries sector, being the most considerable profit-making segment in Kolkata, requires small-scale business loans to increase the supply of fish in the city and reduce dependency on neighbouring states. 


Kolkata: Business Opportunity & Landscape

Kolkata is a major commercial centre with a large number of traditional industries, including handloom, fish farming or aquaculture and silk weaving. Kolkata is also widely known as an important trade centre for over two centuries.

Kolkata is a major port city across India, and it is well-suited for import and export in various neighbouring countries, including Nepal and Bangladesh. The Ganges river runs through it and provides a long coastline for the region. Moreover, the fisheries sector creates opportunities for various other sub-sectors, including cold storage, fish hatcheries, transportation, etc. 

Kolkata is home to various public and private companies in various sectors, such as heavy engineering, mining, steel, electronics, minerals, pharmaceuticals, and agriculture. Being the financial centre of Eastern India, it provides a wide array of goods to suit all budgets.

Kolkata is a perfect city for business. It offers an attractive investment paradise to investors, traders, manufacturers and service providers. This is the perfect time to make investments in Kolkata and achieve financial and business benefits. 

Business loans are used by businesses to buy equipment, expand their operations and even as working capital. The process of getting a business loan in Kolkata is not an easy one, and it requires meticulous research before you start applying for one. This article will help you with all aspects related to business loans in Kolkata – from understanding what they are to the eligibility criteria and how to apply for them.


Why Do You Need a Business Loan?

Business loans are a type of financial product that is provided by banks, NBFCs and other financial institutions to small and medium enterprises (SMEs). These loans are utilised to meet the working capital requirements of a business, and expansion of the enterprise. 

There are numerous reasons why business loans are a must in the capital city of West Bengal, Kolkata. Kolkata is famous for its excellent quality of weaving art and sarees. Besides being a major port city, Kolkata sarees are exported to countries like Bangladesh, Bhutan, Nepal etc. The fisheries sector is the major profit-making segment in the industry. Moreover, people need business loans in Kolkata because: 

Fixed and operational capital requirements for fish farming: 

Fish farming, the major occupation of people in Kolkata, requires capital investment to purchase fish seeds, cold storage facility, nursery management, pond preparation, feeding management, and choosing a land. Selecting land for fish farming is the most challenging task because a lot of things have to be considered before selecting one, like soil, water source, land should not be rocky, and more. 

Business loan requirement for weaving art: 

Production of silk sarees, handlooms, and jute employs more than 1.5 million people in the textile industry, and another half a million people are employed indirectly in the sector. If you are going to set up a manufacturing unit for the production of sarees, you will require a lot of investment. The business is very profitable due to export opportunities, but in the initial phase, business owners will require a business loan to pay wages, afford the purchase of cloth in bulk, and so on. 

Commencing an export business in Kolkata: 

Kolkata, a major port city, provides shelter to people willing to start an export business. Kolkata exports gems, sarees, fishery products, etc., to neighbouring countries, including Bhutan, Nepal, and Bangladesh. To start an export business, a business person must have land and cold storage to keep perishable goods before exporting, which requires enormous investment. Business loans from banks and NBFCs are a way for businesses to take money for the expansion of their business plans. 


Reasons you should take a  business loan in Kolkata

In the current scenario, it is very crucial for entrepreneurs to obtain a business loan. This is because business loans help in expansion of business. 

A business loan is one of the most common financing methods for any developing startup or SME. Business loans must be repaid, including the interest accrued on loan.

Reasons for taking a business loan in Kolkata are:

  • To meet your cash flow or working capital requirements.
  • To fund your startup or SME.
  • To purchase equipment, inventory, and machinery.
  • To make the necessary renovations to your office space.
  • The process of qualifying for an eligible business loan is not that difficult.
  • The interest rates on any type of business loan is higher. However, it definitely offers easy access to money 
  • Eligible business loans are flexible in comparison with other loan types.

What are the best business loans available in Kolkata?

Business loans are beneficial for business owners because they can help to keep the business afloat. There are various types of business loans that banks offer, so it is crucial to understand what they all provide and offer before applying for any one loan.

Bank loans for business owners in Kolkata, India, may be an easier option for those who want to apply for a loan but don’t have the necessary collateral or credit score required by other lenders. However, different types of business loans often charge higher interest rates than other commercial or real estate loans in the city of Kolkata.

Types of business loans are listed below: 

  • Term Loan
  • Construction / Farm Equipment Finance, etc.
  • Working Capital Loan
  • Merchant Cash Advance
  • Demand Loan
  • Machinery Loan
  • Bill / Invoice Discounting
  • Letter of Credit
  • Loans under Govt. Schemes
  • Micro Lending
  • Commercial Vehicle Loan
  • MSME Loan


Top 10 banks/NBFCs in Kolkata offering business loans:

There are a few banks that offer collateral-free loans without any pre-approved bids. Let’s have a look at the top five banks in West Bengal offering business loans: 


Citi Bank

Citi Bank is one of the best business loan providers in India and offers you a wide range of loans for your company’s operating capital. Given that they have a network in more than 100 countries, this loan is most appropriate for you if your business operations take place abroad. You should at least have a cibil score of 600 to get a business loan from Citi bank. Your chances of getting the loan increase when you have 700 points in the cibil score.

Major highlights:

  • The minimum loan amount is INR 10,00,000, and the maximum is 1,50,00,000.
  • The repayment tenure ranges between 12 and 120 months.
  • 48 hours is the time frame to apply for the business loan.
  • No security, collateral or guarantor is required
  • Early payment charges are 4%
  • The processing fee is 2% when the loan is sanctioned 

SBI Bank

With more than 24000 bank branches and more than 59000 ATMs spread out over the nation, SBI is one of India’s largest public sector banks. Their main motive for offering business loans in West Bengal is to support all small businesses. SBI wants all small businesses to create their current and fixed assets.

Major highlights:

  • Self-employed people, professionals, and business owners are eligible for this loan.
  • A loan from an MSME can range from 10 lakhs to 52 lakhs.
  • They require collateral of 40% of the loan value
  • Continuation proof of business of at least five years.
  • The loan payback period can range from 5 to 15 years.
  • 60 months is the repayment tenure for small business loans.


HDFC Bank is one of the leading banks in India and offers business loans up to INR 40 lakhs without the need for security, collateral, or guarantors.

Major highlights:

  • In business loans, a loan balance transfer service is provided.
  • After you pay 6 EMIs, the loan can be prepaid
  • The annual rate of interest ranges from 15.000% and 21.20%.
  • Offers a repayment period of 12 to 48 months.
  • 50,000 is the minimum loan amount.
  • 5,00,000 is the maximum amount.
  • One year is the bare minimum tenure.
  • Maximum Tenure of the loan: Four Years


ICICI bank is part of India’s larger ecosystem of finance, and it is a perfect choice for entrepreneurs looking for a business loan. 

Major highlights:

  • Due to the excellent documentation policies, loan management and repayment are easy.
  • The working capital, term loans, or composite loan options are available 
  • They offer business loans upto INR 2 crores.
  • The minimum loan amount is 1lakh, and the maximum amount is 40 lakh.
  • The maximum payback period is seven years.

Axis Bank

Axis Banks are highly known for their convenient services and for providing loans at affordable rates of interest.

Major highlights:

  • 30 lakhs annual turnover is mandatory to qualify for a business loan.
  • 3 years of business management experience is required to get eligible for this loan.
  • The maximum repayment period is 15 years.
  • The company must operate as a partnership, sole proprietorship, LLP, Pvt. Ltd. You may be eligible for a loan in the range of Rs. 50000 to Rs. 50 lakhs
  • The interest rate is decided by the bank based on your business profile, financial evaluations, prior performance, and Tenure.
  • Eligible age groups must be between 21 to 65.


Kotak Bank

Kotak Bank was launched in the year 1985. Compared to the other banks in India, it is a young institution. You may rely on Kotak Bank to provide a business loan because they have affordable rates and open lending practices.

Major highlights:

  • You can get a loan ranging from Rs. 3 lakhs to Rs. 75 lakhs.
  • They offer flexible ways for repayment.
  • The lender requires very little document verification for the loan process.
  • They give collateral-free business loans.
  • They have special discounts for corporate and female workers.
  • The loan is open to manufacturers, independent contractors, and service providers.

IDFC First Bank

It is a top-notch bank that provides loans for businesses, allowing you to buy equipment, improve your operations, or meet any other needs your company may have. However, you should be aware that if you obtain a loan from IDFC Bank, you will be required to repay it through a set number of equal monthly instalments. In addition, a cibil score of at least 750 is required for business loans, just like most other loans, and it’s one of the key ways to guarantee IDFC First Bank approval.

Major highlights:

  • You can obtain a business loan ranging from INR 1 lac to INR 9 lac via the Business Installment Loans program, which is open to businesses, professionals, and non-professionals.
  • Any security or collateral is not required.
  • The loan must be repaid in four years.
  • The nature of the business, ability to repay the loan, and income are the only factors determining the loan amount at IDFC First Bank.

Bajaj Finserv

Bajaj Finserv is a prominent non-banking financial institution (NBFC) which is headquartered in Pune, Maharashtra. According to the data, the lending and wealth management institution is ranked third in the finance and insurance category across India. 

Major highlights: 

  • Apply for an unsecured loan which is collateral free with Bajaj finserv
  • Small and medium enterprises can get a credit of upto INR 45 lakhs
  • The rate of interest charged is 17% per annum for a business loan
  • The business owner must have a cibil score of 650 above
  • Businesses must have three years of work history
  • The payback period can be extended upto 84 months
  • Quick disbursal of loan within 24 hours of document verification 


Fullerton India

The company is headquartered in Mumbai, and due to its services, it has gained a reputation amongst various credit rating agencies. 

Major highlights: 

  • Companies should earn 2 lakh annually
  • 3 years of business experience
  • Provides unsecured loans of upto 50 lakhs
  • Businesses must secure the loan with collateral when it is more than 50 lakhs
  • The payback period can be extended upto 48 months
  • Cibil score should be more than 750 


L&T Financial Services

L&T financial holdings (LTFH) is one of the leading non-banking financial services companies promoted by the Larsen & Turbo group of companies. It is focused on a variety of products and services, including rural, housing, mutual funds, and infrastructure finance. 

The NBFC is expected to touch a growth of seven-eight per cent. It offers financial products in the housing sector, business loans, and vehicle finance, among others.


Major highlights:

  • Unsecured collateral-free loans are offered, ranging from INR 5 lakhs to 50 lakhs 
  • Small and medium enterprises can take funding from L&T SME loans 
  • Interest rates range from 15.5% to 20.5%
  • Tenure of payback can be extended upto 60 months
  • The minimum turnover must be between 80 lakh to 250 crore
  • Business should be running for three years
  • A processing fee of 2% is applicable on the loan amount at the time of disbursal 

Conditions for loan eligibility:

Kolkata is an appealing and enticing place for foreign direct investments (FDI) as it is the largest for fish production, and textile industry. The general criteria a bank uses to determine if you are eligible for small-scale business loan in Kolkata are as the following:

  • Owners and self-employed people or individuals who are involved in partnerships and private limited companies in Kolkata
  • Employees employed in their current positions for 3 years
  • Individuals between the age group of 22-65
  • Businesses must have a annual turnover of Rs. 10 Lakhs.
  • Companies earning revenue and generating profit in the last 2 years.
  • Businesses must earn at least two lakhs annually.

The documents needed will differ depending on the reason for the loan, the credit history as well as the financial condition of the enterprise, etc.


Documents required for a business loan

The required documentation or paperwork is minimal and hassle-free to obtain a unsecured and collateral free business loan in Kolkata. Here is a list of the important papers to obtain a business loan:

  • Identity proof and PAN card of the firm, a company, or an individual
  • Documents required, including voter ID cards, Ration Card Passport, and Driving Licence, prove residence.
  • Documents like income Tax returns (ITR), the income statement, the P/L account, and the balance sheet.
  • Documents that prove continuation, such as Income Tax Returns (ITR) or Trade Licence Establishment, and Sales Tax Certificate.
  • Other documents might include a declaration of Sole Proprietorship or a certified copy Partnership deed, as well as the official copies of the Memorandum along with the Articles of Association and the Board Resolution.

The list above isn’t complete. What documents you actually require to submit will depend on your financial situation as well as the risk assessment. 


Process to apply for a business loan

Being eligible for a business loan is not an easy task, but it is not impossible either. The first step is understanding the bank’s requirements and then filling in the application form accordingly.

Many banks offer business loans in West Bengal and might have different requirements.

Apply Online

  • Click on the Apply Now button on the website you are taking loan from.   
  • Enter the loan amount and the payback period for the loan. 
  • You will receive immediate confirmation and acknowledgment based on the details you provide. 
  • You will receive an ID number, and a Bank representative will reach out to you.
  • The application process will go through a number of verification steps.
  • Once the loan verification process is completed, you will receive a personalised loan proposal. 

To know more details on SME loans in Kolkata . You can email [email protected] or call at  +918886666821.


In a term loan customer has an option of prepayment if they have surplus funds. You can make monthly payments of the interest rate and principal amount. 

A line of credit simply means an approval of a certain loan amount for a specific tenure. Also, in this facility only interest is paid monthly and principal amount is eliminated. The customer will only be charged for the amount or money he/she used.

It is indeed possible to extend your credit limit. Though this process is different for every bank. 

The payback period of a business loan depends on different banks. However, generally the period ranges between 12 months to 60 months

   You can get a loan of upto 50 lakhs without keeping anything as collateral.

 All the banks charge a particular cancellation charge in addition to 18 per cent GST 

Yes, you can shift your business loan to another bank and have to start paying a new  interest rate as per the new bank. 

Purchase inventory, hire new employees, purchase commercial property, spend on marketing, and fulfil your working capital requirements. 

  • Business owners and self-employed individuals
  • Individuals between the age group 22 to 65
  • Businesses having a turnover of 10 lakhs
  • Businesses must earn 2 lakhs annually
  • Business owners and self-employed individuals
  • Individuals between the age group of 22 to 65
  • Businesses having a turnover of 10 lakhs
  • Companies which made a profit in the last 2 years
  • Businesses must earn 2 lakhs annually

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