Introduction: The Rise of Digital Lending in India
With India’s booming startup ecosystem and expanding SME sector, the demand for quick and easy business loans is on the rise. Traditional banking methods are often time-consuming and document-heavy. This has opened the door to a new era of business loan apps—mobile-based platforms that provide fast, paperless, and collateral-free loans to entrepreneurs.
In this guide, we explore the best business loan apps in India in 2025, analyze their features, compare interest rates and eligibility, and help you choose the right app based on your needs.
Why Choose Business Loan Apps?
Mobile lending apps offer several advantages over conventional business loan methods:
| Feature | Advantage |
|---|---|
| Paperless Process | No need to visit banks or submit physical documents |
| Quick Disbursal | Loans disbursed within 24–72 hours |
| Flexible Tenure | Ranges from 3 months to 5 years |
| Collateral-Free | Most apps offer unsecured business loans |
| Credit Score Access | Soft checks that don’t harm your CIBIL score |
These platforms are especially beneficial for MSMEs, traders, women entrepreneurs, and self-employed professionals.
Top 10 Business Loan Apps in India (2025)
Here’s a breakdown of the most trusted and feature-rich business loan apps in India:
1. LendingKart
- Loan Amount: ₹50,000 – ₹2 crore
- Interest Rate: Starts from 1% per month
- App Features:
- AI-based eligibility checker
- No collateral required
- Easy renewal and top-up options
- Best For: Small businesses and traders
2. Indifi
- Loan Amount: ₹50,000 – ₹50 lakh
- Interest Rate: 10% to 36% per annum
- App Highlights:
- Customized loans for restaurants, travel agents, retailers
- API integrations with POS and accounting tools
- Transparent fee structure
- Best For: Sector-specific small businesses
3. FlexiLoans
- Loan Amount: ₹50,000 – ₹1 crore
- Interest Rate: From 1% monthly
- Features:
- Instant business loans via app
- Easy repayment through EMIs
- Excellent customer support
- Best For: Women entrepreneurs, first-time borrowers
4. Razorpay Line of Credit
- Loan Type: Business credit line
- Credit Limit: Up to ₹25 lakh
- Benefits:
- Pay interest only on what you use
- Seamless integration with Razorpay payments
- App-based withdrawals anytime
- Best For: E-commerce, D2C brands, SaaS startups
5. Paytm for Business Loan
- Loan Amount: ₹10,000 – ₹10 lakh
- Interest Rate: Custom based on transaction history
- Special Features:
- Direct approval based on Paytm usage
- Zero paperwork for existing merchants
- No collateral required
- Best For: Paytm merchants, kirana stores, service providers
6. KreditBee
- Loan Type: Personal loans for business use
- Loan Amount: ₹1,000 – ₹2 lakh
- Advantages:
- Instant approval
- 100% digital process
- CIBIL score improvement tips
- Best For: Freelancers and gig workers
7. InstaMoney by CASHe
- Loan Amount: ₹10,000 – ₹3 lakh
- Credit Duration: 3 to 12 months
- Perks:
- Quick disbursal within minutes
- Attractive cashback and reward points
- Best For: Young solopreneurs and professionals
8. Navi Business Loans
- Loan Amount: ₹10,000 – ₹5 lakh
- USP:
- Paperless KYC
- Instant EMI calculator on app
- App-based loan tracking
- Best For: Quick micro loans for small-scale entrepreneurs
9. Tata Capital – Moneyfy App
- Loan Amount: ₹75,000 – ₹25 lakh
- Features:
- Trusted Tata brand
- Flexible tenure options
- High approval rate
- Best For: Medium-sized businesses, repeat borrowers
10. Bajaj Finserv Business Loan App
- Loan Amount: ₹1 lakh – ₹45 lakh
- App Highlights:
- Pre-approved offers
- 48-hour disbursal
- EMI holiday option
- Best For: Retailers and medium enterprises
Comparison Table: Top Business Loan Apps (2025)
| App Name | Loan Range | Disbursal Time | Interest Rate (p.a.) | USP |
|---|---|---|---|---|
| LendingKart | ₹50K – ₹2 Cr | 48 hrs | 12% – 24% | Collateral-free, quick process |
| Indifi | ₹50K – ₹50 L | 72 hrs | 10% – 36% | Industry-specific loans |
| FlexiLoans | ₹50K – ₹1 Cr | 48 hrs | 12% – 28% | Good for women-led businesses |
| Razorpay Credit Line | Up to ₹25 L | Instant | Only usage-based | Flexible credit usage |
| Paytm for Business | ₹10K – ₹10 L | Instant | Customized | Transaction-based approval |
| KreditBee | ₹1K – ₹2 L | 10 min – 24 hrs | 16% – 30% | Best for freelancers |
| Navi Loans | ₹10K – ₹5 L | Instant | 9.9% – 24% | Micro loans, paperless |
| Tata Moneyfy | ₹75K – ₹25 L | 1–2 days | 11% – 25% | Strong brand backing |
| Bajaj Finserv | ₹1 L – ₹45 L | 2–3 days | 13% – 28% | EMI holiday option |
Eligibility Criteria for Business Loan Apps
While each app has unique requirements, here are some general criteria:
| Requirement | Details |
|---|---|
| Age | 21–60 years |
| Business Vintage | Minimum 6 months to 2 years |
| Credit Score | 650+ preferred (for unsecured loans) |
| Bank Statements | Last 6–12 months required for cash flow assessment |
| Business Type | Proprietorship, Partnership, LLP, Pvt Ltd, Freelancer |
How to Apply for a Business Loan via App
Step-by-Step Process:
- Download App: Install from Google Play or App Store.
- Register: Use mobile number and OTP to sign up.
- KYC Verification: Upload PAN, Aadhaar, GSTIN, and bank details.
- Loan Selection: Choose amount, tenure, and EMI plan.
- Approval & Disbursal: AI-based verification and money in account within hours.
Tips to Increase Loan Approval Chances
- Maintain a Healthy Credit Score: Above 700 is ideal.
- Show Consistent Business Revenue: Upload recent GST and bank statements.
- Avoid Multiple Applications: Too many credit checks hurt your score.
- File ITR Regularly: It proves income legitimacy.
- Use Digital Payments: Helps create transaction history for easier approval.
Who Should Use Business Loan Apps?
Business loan apps are ideal for:
- Small Businesses & Startups needing fast capital for inventory, hiring, or expansion.
- Women Entrepreneurs looking for minimal-documentation loans.
- Freelancers & Gig Workers with informal income streams.
- Retailers & Traders seeking working capital without pledging assets.
Benefits of Digital Lending over Traditional Loans
| Traditional Loan | Business Loan App |
|---|---|
| Long documentation process | 100% paperless and digital |
| Approval takes 7–15 days | Approval within hours |
| Requires collateral | Most loans are unsecured |
| Limited availability | Nationwide reach across India |
| Fixed loan types | Customized loan products for every business |
Challenges and Cautions
While these apps offer great convenience, there are a few considerations:
- Hidden Charges: Always read the terms and processing fee details.
- Over-Borrowing: Easy credit can lead to unnecessary debt.
- Data Privacy: Ensure the app is from a reputed NBFC or fintech company.
- Scam Apps: Avoid unauthorized apps not registered with RBI or SEBI.
Regulatory Update (2025)
As per the RBI Digital Lending Guidelines:
- All loan apps must be registered with a bank or NBFC.
- Transparent disclosure of interest, fees, and terms is mandatory.
- Loan agreements must be shared digitally with the borrower.
- No unauthorized access to personal data like contact list or gallery.
Always choose an app that complies with RBI’s digital lending norms.
Conclusion
Business loan apps in India have become a financial lifeline for small businesses, startups, and self-employed individuals. Whether you’re expanding operations, stocking inventory, or managing payroll, these apps provide speedy, secure, and accessible financing at your fingertips.
Choosing the right business loan app depends on your borrowing need, loan size, business profile, and repayment ability. Ensure you compare options thoroughly and go for RBI-compliant platforms to make the most of digital lending in 2025.
FAQs: Best Business Loan Apps in India
Q1. Are business loan apps safe in India?
Yes, as long as they are backed by RBI-registered NBFCs or banks.
Q2. How much loan can I get from a business loan app?
Anywhere from ₹10,000 to ₹2 crore depending on your business profile and app provider.
Q3. Do I need a CIBIL score to apply on these apps?
Yes, but some apps also approve loans based on cash flow and transaction data.
Q4. Can I repay the loan early?
Most apps allow early repayment with minimal or no foreclosure charges.
Q5. What happens if I default on the loan?
Defaulting affects your credit score and may attract legal recovery action.