Business Loan

5 Lakh Business Loanwith flexible EMIs.

Quick access to Rs. 500,000 for working capital, equipment purchase, business expansion, or inventory, with transparent pricing and a fully digital process. A Rs. 5 lakh business loan allows you to take action without depleting personal resources or postponing supplier payments, whether you're a retailer stocking up ahead of a festive season, a small manufacturer upgrading machinery, or a service business filling a brief cash-flow gap. Due to government credit guarantee programs like CGTMSE and MUDRA, which make small-ticket lending feasible for both banks and NBFCs, the majority of lenders offer this loan size as a wholly unsecured facility, requiring no property, gold, or fixed deposit as collateral. Get funds delivered in as little as 24 hours for pre-approved profiles, compare live offers from over 16 top banks and NBFCs, and select the EMI structure that best suits your monthly cash flow, all without a hard inquiry affecting your credit score until you actually apply.

Loan amount

₹5,00,000

Starting rate

11.99% p.a.

Disbursal

Within 24 hrs

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Get ₹5,00,000 Business Loan at 11.99%* p.a.
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Get funds in 24 hours
Zero impact on credit score

Calculate EMI for ₹5,00,000 Business Loan

Your EMI will be

₹16,605

Total Interest Payable

₹97,772

Total Amount Payable

₹5,97,772

Loan amount₹5,00,000

₹5,00,000₹50,00,000

Rate of interest (yearly %)12.0

11.99%24%

Loan tenure

1 Yr3 Years7 Yrs

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Rates, fees, and disbursal timelines are indicative and may vary by lender, profile, and loan amount. *Terms & conditions apply.

Key Features of a ₹5,00,000 Business Loan

Feature	Details
Loan Amount	5 Lakh
Interest Rate	11.99% – 22% p.a.
Repayment Tenure	12 – 84 months
Processing Fee	1% – 4% of loan amount
Disbursal Time	2–7 working days
CIBIL Score Required	700+ (750+ for best rates)
Collateral Required	None (unsecured)
Minimum Turnover	Rs. 10 lakh
Prepayment Charges	0% – 5% (lender-specific)

Bikesh Finserv 5 Lakh Business Loan – Compare Top Lenders & Apply Online

Bank/NBFC	Interest Rates (% p.a.)	Processing Fees
HDFC Bank	11.99% onwards	Up to 2%
Axis Bank	12.49% onwards*	Up to 2%
ICICI Bank	12.75% onwards	Up to 2%
Kotak Mahindra Bank	13.00% onwards	Up to 2.5%
Bank of Baroda	12.15% - 18.00%	Up to 2% (Max. Rs. 10,000)
Bajaj Finance Limited	14.00% - 23.00%	Up to 4.72%
IDFC First Bank	13.25% onwards	Up to 2%
IndusInd Bank	13.50% onwards	Up to 2%
Yes Bank	13.75% onwards	Up to 2.5%
Tata Capital	13.50% onwards	Up to 3%
L&T Finance	15.00% onwards	Up to 3%
Poonawalla Fincorp	15.00% onwards	Up to 3%
Piramal Finance	14.99% onwards	Up to 3%
InCred Finance	15.00% onwards	Up to 4%
SMFG India Credit	14.75% onwards	Up to 3%
Finable	15.50% onwards	Up to 4%

*Bikesh Finserv special rates

Note: Rates as of 6th June 2026

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Rs. 5 lakh Business Loan EMI Calculator – Monthly EMI at Every Rate

An EMI calculator helps you estimate your monthly repayment before you apply. For a Rs. 5 lakh business loan, your EMI depends on the interest rate and tenure you choose — knowing this upfront helps you plan your budget with confidence.

Use our business loan EMI calculator to try different combinations, or refer to the sample tables below for quick reference.

Business Loan EMIs for Rs. 5 lakh at Different Interest Rates

Loan Amount (Rs.)	Interest Rate (p.a.)	Tenure	EMI (Rs.)	Interest Cost (Rs.)
5 lakh	11.99%	5 years	11,120	1,67,182
5 lakh	15%	5 years	11,895	2,13,698
5 lakh	18%	5 years	12,697	2,61,803

Business Loan EMIs for Rs. 5 lakh for Different Tenures

Loan Amount (Rs.)	Interest Rate (p.a.)	Tenure	EMI (Rs.)	Interest Cost (Rs.)
5 lakh	11.99%	2 years	23,534	64,826
5 lakh	11.99%	3 years	16,605	97,772
5 lakh	11.99%	5 years	11,120	1,67,182

Eligibility: Who Can Get Rs. 5 lakh Business Loan?

Lenders compare your profile to the typical qualifying standards established by lenders of business loans. Here's a thorough look at what most lenders look for in a Rs. 5 lakh loan application, even though specific requirements differ slightly between banks and NBFCs.

At least three years of business experience (some lenders accept two years for established profiles): Before financing against your company's cash flows, lenders want to make sure it has survived at least one full economic cycle. This is one of the first filters used. Although they are usually directed against NBFCs, newer companies are not automatically rejected. lenders or MUDRA's Shishu/Kishor categories, which are made especially for newer businesses with less experience.
Depending on the loan amount, a minimum yearly turnover of Rs. 10 lakh or more is required. The magnitude of the loan you're requesting determines the turnover requirements. A Rs. 5 lakh loan is a typical starting point for MSMEs looking for their first official credit line because it is more accessible than larger unsecured facilities.
A CIBIL score of 700 and above is preferred; 750+ for the best rates. Your score directly influences the interest rate you are offered in addition to your chances of being approved. While scores between 700 and 750 frequently fall somewhere in the middle of the band, scores in the 750+ range usually unlock rates closer to the lower end of a lender's declared range (such as HDFC's 11.99% floor). Banks in particular make approval more difficult below 700, while NBFCs and other fintech lenders are still more accommodating.
Open to proprietorships, partnerships, LLPs, and private limited companies. Partnerships and private limited companies need entity-level documents like partnership deeds, MOA/AOA, and board resolutions in addition to promoter-level checks, whereas proprietorships are primarily evaluated based on the owner's personal and business credit combined.
GST registration and regular ITR filing for the last 2-3 years. Here, consistency is more important than exact numbers. Lenders particularly cross-check your GSTR-3B filings against your claimed turnover and ITR figures, so gaps or mismatches, even sincere ones from delayed files, are frequently the cause of applications stalling or being identified for further investigation.
The existing EMI / debt-service ratio should be below 50% of net business income. Both you and the lender are protected by this DSCR check; taking on more debt significantly raises default risk if your present loan commitments already account for half of your net income. If you're getting close to this level, you might want to seek a slightly lesser amount to maintain your ratio comfortably or think about merging smaller loans you already have before applying.
Age criteria (commonly overlooked): The majority of lenders require applicants to be between the ages of 21 and 65 at the time of loan maturity, while self-employed professionals are occasionally allowed somewhat greater upper limits due to their often longer working histories.
A quick note on secured vs. unsecured eligibility: For conventional unsecured financing at this ticket size, all of the foregoing is applicable. If you're willing to provide collateral, some lenders will significantly loosen their turnover and vintage requirements in exchange for a reduced interest rate. If you have property or fixed deposits that you can pledge, it's worth talking to your relationship manager about this.

Rs. 5 lakh Business Loan for Proprietorship v/s Partnership/Pvt Ltd

Aspect	Proprietorship	Partnership / Pvt Ltd
Documentation	Simpler KYC and business proof	Partnership deed / MOA-AOA and board resolutions required
Credit assessment	Based on proprietor's personal and business credit	Entity-level and promoter credit both evaluated
Interest rates	Competitive rates for strong profiles	Similar rates; larger entities may negotiate better terms
Loan limits	Typically up to Rs. 50 lakh unsecured	Higher limits available with collateral or cash-flow backing
Disbursal speed	Faster for sole proprietors with clean GST/ITR	May take longer due to additional entity verification

Documents Required for Rs. 5 lakh Business Loan

Below are the documents required to apply for a Rs. 5 lakh business loan. Keep digital copies ready; most lenders now offer fully paperless applications, and having everything scanned and organized upfront is the single biggest factor in getting a same-day or next-day approval rather than a week-long back-and-forth.

KYC of promoters/partners: Aadhaar, PAN, passport, or driving license. Proof of identification and address is required for each promoter, partner, and director mentioned on the business, not simply the main applicant. Expect to submit KYC for all significant stakeholders, not just the person completing the form, if you're filing as a partnership or private limited corporation. A name or address discrepancy between Aadhaar and PAN is a frequent cause of delays; it's best to resolve this before applying rather than waiting for a response.
Business proof: GST registration certificate, shop & establishment license, or Udyam registration. This proves that your company is an operational, legally recognized entity. Since Udyam registration is the current MSME classification system and frequently opens up faster processing or slightly better terms, lenders are increasingly favoring it, especially for micro and tiny businesses. It's best to register for Udyam before applying rather than rushing to do so in the middle of the process if you haven't already. It's easy and free to do so online.
Financials: ITR with computation for last 2-3 years. Lenders like to view the income sheet computation rather than just the ITR acknowledgment since it provides underwriters with a better understanding of your company's true profitability as opposed to what is displayed on paper and demonstrates how your taxable income was calculated. This is usually the individual's ITR for proprietorships; entity-level and, frequently, promoter-level ITRs are needed for partnerships and corporations.
Bank statements: Current account statements for last 12 months. Here, lenders evaluate actual cash flow, typical monthly balances, the quantity and frequency of credits, and whether your banking behavior is compatible with a legitimate business rather than one that is mostly used to process personal transactions. It's important to check your own statements for anything that might require an explanation because frequent large cash withdrawals or mysterious lump-sum deposits are major red flags that might impede or complicate approval.
GST returns: GSTR-3B for last 6-12 months. These are immediately compared to your claimed turnover and ITR numbers. Lenders are actually checking for consistency across all three data points: bank statements, ITR, and GST returns, rather than just one document. Keeping up with GST compliance is beneficial for reasons other than taxes since gaps in filing, even from little delays, can lead to further examination.
Entity documents: Partnership deed, MOA/AOA, or board resolution (as applicable). Since the business and the individual are legally one and the same, this category is typically not necessary for proprietorships. While private limited companies normally require their Memorandum and Articles of Association along with a board resolution authorizing the loan application, partnerships require a registered partnership deed that reflects the current partners. This final document is frequently forgotten and can delay disbursement if it is not prepared in advance.
A few additional items worth having ready, even if not always explicitly listed: Passport-size photographs of all applicants/co-applicants; proof of business address (rent agreement or utility bill, if different from the promoter's residence); and a brief note on loan purpose, especially for lenders that ask for it during underwriting. Even a few lines explaining the specific use (inventory, equipment, working capital), tends to move applications through faster than leaving it generic.
Having all of the above digitized and named clearly (rather than as one long scanned PDF) before you start the application is the single easiest way to avoid the most common cause of delay: lenders re-requesting documents that were technically submitted but weren't identifiable within a bulk upload.

5 Lakh Business Loan Fees & Charges

Particulars	Charges
Loan Processing Fees	1% to 4% of loan amount
Prepayment / Part-prepayment / Foreclosure Charges	For Floating Rate: Nil; For Fixed Rate: Usually around 2% – 5% on the principal outstanding
Loan Cancellation	Usually around Rs. 3,000
Stamp Duty Charges	As per actuals
Legal Fees	As per actuals
Penal Charges	Usually @ 2% per month; 24% p.a.
EMI / Cheque Bounce	Around Rs. 400 per bounce

How to Apply for Rs. 5 lakh Business Loan Online Step by Step

You can apply for a business loan through Bikesh Finserv in the following steps:

Sign in to your Bikesh Finserv account or start a new application online.
Go to your dashboard and check your credit score.
Select the Business Loan option and enter your preferred loan amount.
Our platform analyses your business profile and credit in real time.
Curated offers matching your business profile are displayed on the screen.
Review loan details such as interest rates, processing fee, EMI, loan tenure, and more.
Apply with the lender best suiting your requirements.

Rs. 5 lakh Loan With Low CIBIL Score – Is It Possible?

Yes, it is possible to avail a business loan of Rs. 5 lakh with a low CIBIL score. Applicants having a credit score below 700 can also get their business loans approved through Bikesh Finserv. However, these applicants with a lower credit score are usually considered credit risky by lenders and may not get the best offers.

Most top private and public sector banks usually reject the loan applications of businesses with a low credit score. However, many NBFCs and fintech lenders are open to offering business loans to MSMEs with a low credit score — though the interest rates offered are typically higher. Strong GST compliance and consistent turnover can still improve approval odds.

Got questions?

Frequently Asked Questions

EMI depends on interest rate and tenure. At 11.99% p.a. for 5 years, EMI is around Rs. 11,120. At 15% for the same tenure, it is around Rs. 11,895. Use the calculator on this page or our business loan EMI tool to try different combinations.

Most lenders prefer minimum annual turnover of Rs. 10 lakh for unsecured business loans of this size. Proprietorships and MSMEs with consistent GST filings and ITRs for 2–3 years stand a better chance of approval.

Yes, though approval is harder with scores below 700. Banks may decline, but several NBFCs and fintech lenders consider lower scores with higher interest rates. Strong business cash flows, GST compliance, or collateral can improve your chances.

For pre-approved customers with complete documentation, funds can be credited within 2–3 working days. Standard applications typically take 3–7 working days after document verification and final approval.

You generally need KYC of promoters, GST registration, ITRs for last 2–3 years, 12 months' current account bank statements, GSTR-3B returns, and entity documents such as partnership deed or MOA/AOA where applicable.

Floating-rate loans often have nil prepayment charges. Fixed-rate loans may charge 2%–5% on the outstanding principal. Always check your lender's schedule of charges before signing.

Yes. Sole proprietors are eligible if they have 3+ years of business vintage, regular GST and ITR filings, and a credit score of 700+. Lenders assess both personal and business credit for proprietorships.

Rates typically range from 11.99% to 22% p.a. depending on lender, credit score, turnover, business vintage, and entity type. Applicants with 750+ CIBIL scores and strong financials usually qualify for the best rates.

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