Best NBFCs for Business Loans in India 2025: Your Ultimate Guide

Starting and growing a business in India often requires financial support. While traditional banks have always been the go-to for business loans, Non-Banking Financial Companies (NBFCs) have emerged as strong alternatives. Offering flexible loan products and faster approval processes, NBFCs are becoming a popular choice for many entrepreneurs.

If you’re looking to secure a business loan in India, knowing which NBFCs are the best can make a huge difference. In this guide, we’ll explore the best NBFCs for business loans in India in 2025, compare them with bank loans, and discuss what you need to know to get started.

What Are NBFCs and How Do They Work?

Before diving into the list of top NBFC business loans, let’s take a quick look at what NBFCs are and how they differ from traditional banks.

Non-Banking Financial Companies (NBFCs) are financial institutions that offer a wide range of financial services, such as loans, insurance, and asset management, without holding a banking license. Unlike banks, NBFCs don’t have the authority to accept demand deposits (like savings accounts) but they can provide loans to individuals and businesses.

Advantages of Opting for NBFC Loans

There are several reasons why many businesses opt for loans from NBFCs:

1. Faster Loan Processing: NBFCs are known for their quicker loan approval and disbursal processes compared to traditional banks.

2. Flexible Loan Products: They often offer customized loan solutions tailored to the unique needs of a business.

3. Lower Documentation: NBFCs generally have less stringent documentation requirements, making them ideal for small business owners who might find it challenging to meet the documentation criteria of banks.

4. Ease of Access: Many NBFCs are more accessible to startups and businesses with limited credit history.

Best NBFCs for Business Loans in India (2025)

Here are some of the best NBFCs for business loans in India in 2025. These companies offer competitive loan terms, quick approvals, and flexible repayment options.

1. Bajaj Finserv

Bajaj Finserv is one of the leading NBFC loan providers in India, offering a range of business loan products. Whether you need a loan for working capital, equipment purchase, or expansion, Bajaj Finserv provides tailor-made solutions.

• Loan Amount: Up to ₹50 lakhs

• Loan Tenure: 12 to 60 months

• Interest Rate: Starting from 13% per annum

• Processing Fees: Low processing fees with minimal documentation

Bajaj Finserv offers a quick application process, and with its robust online platform, you can apply and track the loan status from the comfort of your home.

2. Lendingkart

Lendingkart is another top NBFC business loan provider that has gained popularity for offering quick and hassle-free loans to SMEs and startups. They use technology to assess the creditworthiness of businesses, which speeds up the loan approval process.

• Loan Amount: ₹50,000 to ₹20 lakhs

• Loan Tenure: 6 to 36 months

• Interest Rate: Starting from 18% per annum

• Processing Fees: Based on loan amount and tenure

Lendingkart focuses on minimal paperwork and offers loans to businesses that may not have a strong credit history, making it a good choice for newer businesses.

3. Muthoot Fincorp

Known for its long-standing presence in the financial sector, Muthoot Fincorp offers a variety of business loan products, including working capital loans and term loans. The company is particularly known for its ease of access and straightforward loan terms.

• Loan Amount: ₹10,000 to ₹20 lakhs

• Loan Tenure: 12 to 48 months

• Interest Rate: 12% to 22% per annum

• Processing Fees: Competitive and affordable

Muthoot Fincorp’s transparent and customer-friendly loan process makes it a reliable option for businesses seeking financial assistance.

4. Kapil Jain Financial Services (KJFS)

For businesses looking for personalized service, Kapil Jain Financial Services (KJFS) offers a more bespoke approach to business loans. The company specializes in providing financing for small and medium-sized enterprises (SMEs).

• Loan Amount: ₹1 lakh to ₹25 lakhs

• Loan Tenure: 6 to 60 months

• Interest Rate: Competitive interest rates starting from 15%

• Processing Fees: Low fees based on the loan amount

The company is known for providing customized loan solutions and quick processing times, ensuring that your business doesn’t face long delays.

5. Fullerton India

Fullerton India is a well-established NBFC loan provider known for offering flexible loan options to businesses of all sizes. Whether you’re an MSME or a large corporation, Fullerton India has something to offer.

• Loan Amount: ₹1 lakh to ₹25 lakhs

• Loan Tenure: 12 to 60 months

• Interest Rate: Starting from 14% per annum

• Processing Fees: Transparent and minimal

Fullerton India provides fast loans with quick disbursal, making it an excellent choice for urgent business needs.

NBFC vs Bank Loan: Which Is Better for Your Business?

When deciding between an NBFC and a bank loan, it’s important to consider several factors:

• Eligibility Criteria: Banks tend to have stricter eligibility criteria compared to NBFCs. This includes requirements for a minimum credit score and a strong financial history. NBFCs, on the other hand, may be more lenient in their assessment.

• Loan Processing Time: NBFCs generally offer faster loan approvals, while banks may take longer due to more rigorous processes.

• Interest Rates: While bank loans may offer lower interest rates, NBFCs provide more flexibility and often faster access to capital.

• Documentation: NBFCs often require less documentation compared to banks, making them more accessible to startups or businesses without extensive financial records.

If your business has a strong credit history and can provide all the necessary documentation, a bank loan might be a good choice. However, if you’re a small business or startup with limited credit history, an NBFC loan might be the better option for you.

Loan Eligibility Criteria for NBFCs

Each NBFC has its own eligibility criteria, but here are some common requirements:

1. Business Type: Most NBFCs offer loans to MSMEs, startups, and even large businesses.

2. Minimum Age: The borrower must typically be at least 21 years old.

3. Business Vintage: Some NBFCs require a minimum business vintage of 1-3 years.

4. Credit Score: While not all NBFCs have stringent credit score requirements, a higher score can improve your chances of getting a loan.

5. Annual Turnover: A minimum annual turnover may be required, especially for larger loan amounts.

FAQs About Business Loans from NBFCs

1. What is the eligibility criteria for business loans from NBFCs in India?

Eligibility varies by lender, but most NBFCs require a minimum age of 21, a stable business with at least 1 year of operation, and a good credit score.

2. What are the benefits of choosing an NBFC loan over a bank loan?

NBFC loans typically offer faster processing, lower documentation requirements, and more flexible terms, especially for startups and SMEs.

3. How long does it take to get a business loan from an NBFC?

Loan approval from NBFCs can often be processed in as little as 24-48 hours, depending on the lender and loan type.

4. Are NBFC loans expensive compared to bank loans?

While NBFC loans can come with slightly higher interest rates, they often provide faster access to capital and more flexible terms, which can make them a better option for many businesses.

5. Can I get a business loan from an NBFC if my credit score is low?

NBFCs are more lenient than banks when it comes to credit score, so it’s possible to get a loan even if your score isn’t perfect. However, a higher score will improve your chances.

6. What types of loans do NBFCs offer to businesses?

NBFCs offer a range of business loans including working capital loans, term loans, machinery loans, and loans for expansion.

7. What are the typical interest rates for business loans from NBFCs?

Interest rates typically range from 12% to 22% per annum, depending on the lender and the borrower’s credit profile.

Conclusion

Securing the right business loan is crucial for your company’s growth, and choosing the right NBFC loan provider can help you access the capital you need quickly and easily. The best NBFCs for business loans in India in 2025 offer competitive terms, fast processing, and flexible loan products, making them an excellent choice for businesses of all sizes.

Before making a decision, assess your business needs, loan eligibility, and compare different NBFCs to find the best fit. Whether you’re looking for a short-term working capital loan or funding for long-term growth, NBFCs have a range of options to suit your requirements.