Bikesh Finserv
Business Loan

20 Lakh Business Loanwith flexible EMIs.

Quick access to a Rs. 20 lakh business loan for working capital, equipment purchase, business expansion, or inventory, with transparent pricing and a fully digital process. Whether you're running a proprietorship, partnership, LLP, or private limited company, this 20 lakh loan for business is designed to fund growth without slowing you down.

Loan amount

₹20,00,000

Starting rate

11.99% p.a.

Disbursal

Within 24 hrs

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  • Get ₹20,00,000 Business Loan at 11.99%* p.a.

  • Compare 30+ lenders instantly

  • Get funds in 24 hours

  • Zero impact on credit score

Calculate EMI for ₹20,00,000 Business Loan

Your EMI will be

₹52,658

Total Interest Payable

₹5,27,577

Total Amount Payable

₹25,27,577

₹20,00,000
₹5,00,000₹50,00,000
12.0
11.99%24%
1 Yr4 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 ₹20,00,000 Business Loan

FeatureDetails
Loan Amount20 Lakh
Interest Rate11.99% – 22% p.a.
Repayment Tenure12 – 84 months
Processing Fee1% – 4% of loan amount
Disbursal Time2–7 working days
CIBIL Score Required700+ (750+ for best rates)
Collateral RequiredNone (unsecured)
Minimum TurnoverRs. 25 lakh
Prepayment Charges0% – 5% (lender-specific)

Bikesh Finserv 20 Lakh Business Loan – Compare Top Lenders & Apply Online

Bank/NBFCInterest Rates (% p.a.)Processing Fees
HDFC Bank10.75% onwardsUp to 2% (NIL for MSEs up to Rs. 5L)
ICICI Bank10.5% onwardsUp to 2%
Bank of Baroda10.5% - 18.00%Up to 2% (Max. Rs. 10,000)
Kotak Mahindra Bank10.99% onwardsUp to 2.5%
Axis Bank12.49% onwards**Up to 2%
IDFC First Bank12.99% onwardsUp to 3.5%
Tata Capital12.00% onwardsUp to 3%
Yes Bank13.00% onwardsUp to 2.5%
SMFG India Credit13.00% onwards**Up to 3%
Bajaj Finance Limited14.00% - 23.00%Up to 4.72%
InCred Finance14.50% - 24.00%**Up to 4%
Piramal Finance14.99% onwards**Up to 3%
Poonawalla Fincorp15.00% onwardsUp to 3.5%
L&T Finance15.00% onwardsUp to 3%
IndusInd Bank16.00% onwardsUp to 3%
FinableNeeds verification-

*Bikesh Finserv special rates

Note: Rates as of 6th June 2026

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Rs. 20 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. 20 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. 20 lakh at Different Interest Rates

Loan Amount (Rs.)Interest Rate (p.a.)TenureEMI (Rs.)Interest Cost (Rs.)
20 lakh11.99%5 years44,4796,68,727
20 lakh15%5 years47,5808,54,792
20 lakh18%5 years50,78710,47,211

Business Loan EMIs for Rs. 20 lakh for Different Tenures

Loan Amount (Rs.)Interest Rate (p.a.)TenureEMI (Rs.)Interest Cost (Rs.)
20 lakh11.99%2 years94,1382,59,303
20 lakh11.99%3 years66,4193,91,086
20 lakh11.99%5 years44,4796,68,727

Eligibility: Who Can Get Rs. 20 lakh Business Loan?

Eligibility: Who Can Get a Rs. 20 Lakh Business Loan?

  • Before issuing a Rs. 20 lakh business loan, lenders compare your profile to the typical eligibility requirements specified by business loan lenders. Lenders evaluate risk mostly based on your company's financial performance, cash flow stability, and personal/entity credit history rather than the value of any assets you could pledge because this is usually granted as a collateral-free business loan. By being aware of your eligibility for a 20 lakh business loan up front, you can avoid rejections that could negatively impact your credit score by applying with the proper lender the first time.
  • Here are the typical requirements for a Rs. 20 lakh loan:
  • Business vintage of at least 3 years (some lenders accept 2 years for established profiles).
  • Minimum annual turnover of Rs. 10 lakh and above, depending on loan amount.
  • CIBIL score of 700 and above is preferred; 750+ for best rates.
  • Open to proprietorships, partnerships, LLPs, and private limited companies.
  • GST registration and regular ITR filing for the last 2-3 years.
  • Existing EMI / debt-service ratio should be below 50% of net business income.
  • Business Vintage and Operational History: Businesses that have been in operation for at least three years are preferred by the majority of banks and NBFCs because this shows that they can continue to operate during market cycles. However, a number of NBFCs and digital-first lenders have loosened this criterion to two years for companies with solid, steady revenue and a spotless credit line payback history. Strong personal credit, a co-applicant with a reliable source of income, or, in certain situations, partial collateral to offset the shorter track record greatly increase your chances of acceptance if you're a new company seeking startup finance closer to the 20 lakh threshold.
  • Turnover and Business Profitability: Lenders pay special attention to your company's turnover and profitability trends, including whether revenue has been steady or increasing in addition to the top-line figure. For a loan amount as high as Rs. 20 lakh, many lenders prefer to see turnover considerably beyond this floor because your ability to repay the loan is directly correlated with your company's earnings. However, a minimum yearly turnover of Rs. 10 lakh is typically the baseline. Since discrepancies between GST returns and declared income are one of the most frequent causes of application delays or denials, consistent GST filings that correspond with your claimed turnover carry a lot of weight here.
  • CIBIL Score and Credit History: One of the most common inquiries from applicants is what CIBIL score is needed for a Rs. 20 lakh business loan; the answer varies depending on whether you're applying as an entity or as an individual proprietor. In proprietorships, the business credit history and the individual CIBIL score of the business owner are evaluated. Most banks consider a score of 700 or above to be the minimal need for approval, while scores of 750 or higher usually grant the greatest interest rates and expedited processing. In addition to the entity's credit profile if it has a history of borrowing, lenders assess the CIBIL or CRIF scores of important promoters or directors for partnerships, LLPs, and private limited corporations.
  • Business Structure and Entity Type: Numerous business formats, including proprietorships, partnership businesses, LLPs (limited liability partnerships), and private limited corporations, are eligible for a 20 lakh business loan. In the end, a company's eligibility for a Rs. 20 lakh business loan depends on whether it is lawfully registered, has a current GST registration, if applicable, and can prove steady income through tax returns and bank statements. While a 20 lakh business loan for a private limited company will also require MOA/AOA paperwork and, in certain situations, a board resolution approving the loan application, a 20 lakh business loan for a partnership firm usually requires the partnership deed and KYC of all partners. Similar paperwork is required for an LLP business loan; the partnership deed is replaced with an LLP agreement.
  • GST and ITR Compliance: Frequent ITR reporting and GST registration for the previous two to three years is more than just a formality; it's frequently the most important element lenders use to confirm the income statistics you're claiming. Since this data provides lenders with a real-time snapshot of business activity that is more difficult to manipulate than self-reported financials alone, MSMEs and SMEs with regular, on-time GST filings typically obtain faster approvals. Can Do MSMEs seek a business loan of Rs. 20 lakh. The answer to this frequently asked question is yes. In fact, the majority of banks' and NBFCs' business loan products in this ticket size are especially made with MSME borrowers in mind, and they frequently have less stringent documentation than bigger corporate loans.
  • Debt-to-Income Ratio: Your existing EMI or debt-service ratio should ideally stay below 50% of your net business income. This ratio tells lenders how much of your monthly cash flow is already committed to other loan repayments, and a lower ratio signals more comfortable repayment capacity for the new loan. If you're already carrying significant business or personal debt, paying some of it down before applying can meaningfully improve both your approval chances and the interest rate you're offered.

Rs. 20 lakh Business Loan for Proprietorship v/s Partnership/Pvt Ltd

AspectProprietorshipPartnership / Pvt Ltd
DocumentationSimpler KYC and business proofPartnership deed / MOA-AOA and board resolutions required
Credit assessmentBased on proprietor's personal and business creditEntity-level and promoter credit both evaluated
Interest ratesCompetitive rates for strong profilesSimilar rates; larger entities may negotiate better terms
Loan limitsTypically up to Rs. 50 lakh unsecuredHigher limits available with collateral or cash-flow backing
Disbursal speedFaster for sole proprietors with clean GST/ITRMay take longer due to additional entity verification

Documents Required for Rs. 20 lakh Business Loan

Below-mentioned are the documents required to apply for a Rs. 20 lakh business loan. Keep digital copies ready for a faster, fully online application.

  • KYC of promoters / partners: Aadhaar, PAN, passport, or driving license.
  • Business proof: GST registration certificate, shop & establishment license, or Udyam registration.
  • Financials: ITR with computation for last 2-3 years.
  • Bank statements: Current account statements for last 12 months.
  • GST returns: GSTR-3B for last 6-12 months.
  • Entity documents: Partnership deed, MOA/AOA, or board resolution (as applicable).
  • The documents required for a Rs. 20 lakh business loan are pretty much the same for banks and NBFCs with minor variations depending on your business structure and lender of choice. One of the easiest ways to expedite approval is to have all you need in digital format before you begin your application. Most delays are caused by document verification, not credit assessment.
  • 1. KYC of Promoters and Partners: All applicants, whether they are a sole proprietorship or a partnership in a bigger entity, have to submit standard identity and address proof, Aadhaar, PAN, passport, or driving license. In the case of partnerships, LLPs, and private limited companies, lenders will generally require the KYC documents of all the partners or directors and not just the primary applicant, as the credit profile of each individual can impact the loan decision.
  • 2. Business Proof and Registration: Your shop & establishment license, Udyam registration, or GST registration certificate attests to the legitimacy of your company's operations. In particular, Udyam registration is becoming more and more crucial since many lenders now give registered MSMEs applying for collateral-free business loans faster approvals or discounted processing fees.
  • 3. Financial and Banking Documents: Lenders can see a clear picture of your business income stability and cash flow patterns with an ITR with computation for the last 2-3 years and 12 months of current account bank statements. GSTR-3B returns for the last 6-12 months further validate your declared turnover, and consistency between your GST filings, bank statements, and ITR figures is one of the strongest signals of a low-risk applicant.
  • 4. Entity-Specific Documents: The partnership deed is required if you are applying as a partnership firm. An MOA/AOA and, in some situations, a board resolution approving the loan application must be submitted by private limited firms. Instead of a partnership deed, LLPs usually require the LLP agreement. When your application reaches the final processing stage, you can avoid last-minute delays by keeping these entity documents current and easily available.

20 Lakh Business Loan Fees & Charges

ParticularsCharges
Loan Processing Fees1% to 4% of loan amount
Prepayment / Part-prepayment / Foreclosure ChargesFor Floating Rate: Nil; For Fixed Rate: Usually around 2% – 5% on the principal outstanding
Loan CancellationUsually around Rs. 3,000
Stamp Duty ChargesAs per actuals
Legal FeesAs per actuals
Penal ChargesUsually @ 2% per month; 24% p.a.
EMI / Cheque BounceAround Rs. 400 per bounce

How to Apply for Rs. 20 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. 20 lakh Loan With Low CIBIL Score – Is It Possible?

Yes, it is possible to avail a business loan of Rs. 20 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. 44,479. At 15% for the same tenure, it is around Rs. 47,580. Use the calculator on this page or our business loan EMI tool to try different combinations.

Most lenders prefer minimum annual turnover of Rs. 25 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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