When businesses plan to raise large capital, the 5 crore business loan interest rate becomes one of the most critical decision factors. A ₹5 crore business loan is considered a mid-to-high ticket loan and is offered only after careful evaluation of the business’s financial strength, credit profile, and cash flow stability.
In India, interest rates for a ₹5 crore business loan are not fixed across lenders. Rates vary based on whether the loan is secured or unsecured, the type of facility chosen, and the overall risk profile of the borrower. At Creditcares, we help businesses structure their loan application correctly to secure competitive pricing without unnecessary complications, following the latest RBI lending guidelines.
Typical interest rate ranges for a ₹5 crore business loan
Understanding current market ranges helps set realistic expectations for your business financing needs.
Secured business loans (Loan Against Property)
Secured loans, especially Loan Against Property, usually offer the lowest interest rates for large-ticket funding. These loans are backed by residential or commercial property and offer longer tenures.
Typical interest rates:
Starting from around 9.5% to 10.75% p.a. according to current SBI and HDFC Bank offerings.
This option is ideal for businesses seeking lower EMIs and long-term funding with flexible repayment options.
General business loans (Banks and NBFCs)
Unsecured or partially secured business loans carry higher risk for lenders, resulting in higher interest rates. NBFC business loans often process faster but may have slightly elevated rates.
Typical interest rates:
Around 10.75% to 25% p.a. as per ICICI Bank and other leading banks.
Rates depend heavily on credit score, cash flow, and financial ratios.
Scheme-linked business loans
Certain government-supported platforms and credit guarantee-backed structures may offer competitive rates for eligible borrowers. However, approvals depend on strict eligibility criteria and financial disclosures following RBI’s MSME lending guidelines.
At Creditcares, we focus on aligning your business profile with the right structure rather than pushing a specific bank or scheme.
Term loan vs working capital loan – interest rate comparison
Choosing between a term loan and a working capital loan directly affects interest costs.
Term loan
- Used for expansion, acquisition, or asset purchase
- Fixed or floating interest rates
- Predictable repayment structure
- Lower interest rates for secured options
Working capital loan
- Used for day-to-day operations and business growth
- Interest charged on utilised amount
- Flexible withdrawals and repayments through cash credit facilities
- Slightly higher effective rates due to revolving nature
Creditcares helps businesses select the right product based on cash flow cycles and operational requirements.
Factors that influence your 5 crore business loan interest rate
Lenders do not price loans randomly. Key factors include:
- Credit score and repayment history – A score above 700 significantly improves eligibility
- Nature of the loan (secured vs unsecured)
- Financial ratios such as DSCR and profitability
- Business vintage and industry risk
- Existing liabilities and banking behaviour
A strong financial profile can significantly reduce interest costs according to RBI’s lending framework.
Digital loan approval and 59-minute processing explained
Many borrowers search for loan digital approval or digital approval in 59 minutes expecting instant disbursal. In reality, digital platforms usually provide:
- Quick eligibility assessment
- In-principle approval with minimal documentation
- Faster document verification through digital processes
- Final sanction and disbursement still depend on financial review and compliance checks
Creditcares uses digital assessment tools to speed up approvals while maintaining lender credibility and adhering to RBI digital lending norms.
How Creditcares helps you secure better interest rates
Creditcares works as a credit advisory partner, not a lender. Our role is to ensure that your ₹5 crore business loan is priced correctly and structured efficiently.
Our approach includes:
- Detailed business and financial assessment
- Identifying the most suitable loan structure
- Matching your profile with appropriate lenders
- Negotiating interest rates and terms
- Managing documentation and approvals
This advisory-driven approach often results in better pricing and smoother approvals. Contact us today or call 9830038870 for expert guidance.
Documents required for a ₹5 crore business loan
Proper documentation supports faster processing:
- PAN and Aadhaar of promoters
- Business registration documents and MSME certification
- GST returns for the last 12-24 months
- Bank statements (last 6–12 months)
- Income Tax Returns and audited financials
- Property documents (for secured loans)
Complete documentation improves lender confidence and speeds up the loan approval process.
Frequently asked questions
What is the interest rate for a Business Loan?
Business loan interest rates vary based on loan type and risk profile. For a ₹5 crore loan, rates typically range from 9.5% onwards for secured loans and higher for unsecured loans, as per current HDFC Bank and ICICI Bank offerings.
Is the interest rate fixed or variable for Business Loans?
Business loans can have fixed or variable interest rates. Secured loans often offer floating rates linked to benchmark rates like the RBI repo rate.
Are there any foreclosure charges for the closure of a Business Loan?
Foreclosure charges depend on lender policy and loan structure. Many floating-rate secured loans have minimal or no prepayment penalties as per RBI guidelines.
Final thoughts
The 5 crore business loan interest rate depends on multiple factors, not just the headline rate. Businesses that prepare financials properly and choose the right loan structure can significantly reduce borrowing costs. With expert guidance from Creditcares, you can secure funding that supports growth while maintaining financial stability.
