Introduction to Corporate Loan Rate Drops

In 2025, corporate loan rates in India are declining due to RBI’s monetary policy easing and increased competition among lenders. Loanpao partners with banks and NBFCs to offer businesses affordable financing options, enabling growth and expansion.

Why Corporate Loan Rates Are Dropping

Several factors contribute to the decline in corporate loan rates:

  • RBI Rate Cuts: Repo rate reductions lower borrowing costs.
  • Competition: Banks and NBFCs compete to offer lower rates.
  • Economic Recovery: Stable economy encourages lending.
  • Government Incentives: Schemes like ECLGS support businesses.
  • Digital Lending: Fintech platforms reduce operational costs.

Types of Corporate Loans Available

Loanpao offers a range of corporate loans with reduced rates:

Loan Type Details
Working Capital Loan Up to ₹50 crore at 7.5–10% p.a. for operational needs
Term Loan Up to ₹100 crore for long-term projects at 8–11% p.a.
Equipment Financing Up to ₹25 crore for machinery purchases
Trade Finance Financing for import/export activities at competitive rates
Project Finance Customized loans for large-scale infrastructure projects

Note: Rates and amounts vary by lender and business profile.

Eligibility Criteria for Corporate Loans

Businesses applying through Loanpao must meet:

  • Business Type: Registered companies, partnerships, or LLPs.
  • Turnover: Minimum ₹50 lakh annually (varies by lender).
  • KYC: PAN, GSTIN, and company registration documents.
  • Financials: Audited balance sheets and ITR for 2–3 years.
  • Credit Score: 700+ preferred for lower rates.

Tip: Use Loanpao’s eligibility checker for quick approval insights.

Documents Required

Minimal documentation for corporate loans:

  • Business Proof: Certificate of Incorporation, GSTIN, or Partnership Deed.
  • Identity Proof: PAN and Aadhaar of directors/partners.
  • Financials: Audited financials, ITR, and bank statements.
  • Project Details: Business plan or project report for term loans.
  • Collateral: Property or asset documents, if applicable.

Benefits of Loanpao’s Corporate Loans

Loanpao’s corporate loans offer:

  • Reduced rates starting at 7.5% p.a.
  • Quick disbursal within 7–15 days.
  • Flexible repayment tenures up to 10 years.
  • Access to government-backed schemes like ECLGS.
  • Expert support for loan structuring and documentation.

Frequently Asked Questions

RBI rate cuts, lender competition, and economic stability are driving lower rates.

Rates start at 7.5% p.a., depending on loan type and business profile.

Registered businesses with a minimum turnover of ₹50 lakh annually.

Collateral may be required for loans above ₹10 crore, depending on the lender.

Loanpao ensures disbursal within 7–15 days for approved applications.