Best Banks for Business Loan with Low Interest Rates in 2025

Starting or expanding a business in 2025? Choosing the best bank for business loan 2025 with low interest rates can be the key to your success. With so many banks providing various loan alternatives, it's critical to examine interest rates, repayment flexibility, and approval time. Here's a quick approach to finding the best banks for business loans this year.

Why Interest Rates Matter in Business Loans.

A bank that offers low-interest business loans can save your company thousands of dollars over the course of the loan. reduced rates imply reduced monthly payments, resulting in increased cash flow for operations, inventory, or marketing. That is why it is prudent to focus on banks that offer competitive interest rates to small and medium-sized businesses.

Top Banks for Business Loans in 2025

1. SBI (State Bank of India)

• Interest Rate: Starting at 8.65% p.a.
  
  

• Loan Amount: Up to ₹500 crore
  
  

• Why Choose: SBI is often rated the best bank for business loan 2025 due to its wide reach and flexible terms.

2. HDFC Bank

• Interest Rate: From 9.25% p.a.
  
  

• Loan Amount: Up to ₹50 lakh
  
  

• Why Choose: Fast processing and tailored solutions for small businesses.

3. ICICI Bank

• Interest Rate: From 9.00% p.a.
  
  

• Loan Amount: ₹10 lakh – ₹2 crore
  
  

• Why Choose: Offers collateral-free business loans with quick disbursal.

4. Axis Bank

• Interest Rate: Starts at 10.75% p.a.
  
  

• Loan Amount: Up to ₹1 crore
  
  

• Why Choose: Known for digital loan approval and flexible repayment options.

5. Kotak Mahindra Bank

• Interest Rate: From 9.50% p.a.
  
  

• Loan Amount: ₹3 lakh – ₹75 lakh
  
  

• Why Choose: Excellent for new businesses with limited credit history.

6. Bank of Baroda

• Interest Rate: Starts at 8.85% p.a.
  
  

• Loan Amount: Up to ₹10 crore
  
  

• Why Choose: Trusted public sector bank with minimal documentation.

7. IDFC FIRST Bank

• Interest Rate: Starting at 10.00% p.a.
  
  

• Loan Amount: ₹1 lakh – ₹1 crore
  
  

• Why Choose: Great digital experience and flexible tenures.

8. Punjab National Bank (PNB)

• Interest Rate: From 8.70% p.a.
  
  

• Loan Amount: Up to ₹5 crore
  
  

• Why Choose: One of the top choices for MSMEs and startups.

Conclusion

When searching for the low interest rate business loan bank, always compare more than just interest rates. Look at processing fees, repayment terms, and eligibility requirements. Whether you're starting fresh or scaling up, these banks are among the top banks for business loans in 2025. Pick the one that fits your goals and budget and take your business to the next level.