Key facts: Federal Bank vs Tata Capital business loan
- Starting rate: Federal Bank 10.85%, Tata Capital 12%. This is the lowest rate each loan provider advertises for a business loan, not the rate everyone is offered.
- Gap between starting rates: 1.15 percentage points between the lowest and the highest.
- Top of the published range: Federal Bank up to 16.60%, Tata Capital up to 30%.
- Maximum tenure: Federal Bank 10 years, Tata Capital 5 years.
- Type of loan provider: Federal Bank is a private bank; Tata Capital is an NBFC. Banks and NBFCs price floating rates differently.
- Official websites: federal.bank.in, tatacapital.com.
- Pages checked: 3 official pages opened for this loan type.
- Loan types with a published rate: Federal Bank 7, Tata Capital 6 (out of 8 we track).
- Last checked: 12 October 2026, on each loan provider's own website.
Who each loan provider suits on a business loan
Built only from figures the loan providers publish. It says where each one is ahead on paper, not who will approve you.
Pick Federal Bank if you want
- The lower published starting rate (10.85%)
- The longer maximum tenure (10 years)
Pick Tata Capital if you want
- The most complete published terms for this loan (4 of 5 details)
Federal Bank vs Tata Capital business loan: rate, fees and tenure
Starting business loan rates as published: Federal Bank from 10.85% and Tata Capital from 12%. Federal Bank is lower at the starting rate, but the top of each range and your own credit profile decide what you are offered. Federal Bank lists the longer maximum tenure (120 months).
| Detail | Federal Bank | Tata Capital |
|---|---|---|
| Published rate | Other Business Loans 10.85% to 16.60% (MSME, floating repo-linked); 11.90% to 17.75% (non-MSME, MCLR-linked) | Starts at 12% p.a.; self-employed 12% to 30% p.a. |
| Rate basis | repo-linked (MSME) / MCLR (non-MSME) / fixed | Primarily floating, linked to RLLR or PLR; fixed in some cases |
| Loan amount | Up to Rs 20 crore (rate table scope) | Not published |
| Maximum tenure | 120 months | 60 months |
| Processing fee | Not published | Up to 3% of loan amount + taxes |
| Prepayment / foreclosure | Not published | Part-prepayment 4.5% of amount prepaid; foreclosure 4.5% of principal outstanding |
| Eligibility (as published) | Individuals, proprietorships, partnerships, LLPs, companies in manufacturing, services or trading | CIBIL about 675+ generally needed |
| Other terms published |
|
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| Official source | federal.bank.in/business-loans federal.bank.in/loan-rate | tatacapital.com/business-loan/rates-and-charges.html |
Read the full guide: Business loan
What each loan provider publishes about its business loan
Federal Bank
Private bank · The Federal Bank Limited
- How the rate is set: repo-linked (MSME) / MCLR (non-MSME) / fixed
- Eligibility as published: Individuals, proprietorships, partnerships, LLPs, companies in manufacturing, services or trading
- Quick loan processing & approval
- Simple assessment norms
- Longer repayment period up to 120 months
- Flexible repayment options
Tata Capital
NBFC · Tata Capital Limited
- How the rate is set: Primarily floating, linked to RLLR or PLR; fixed in some cases
- Eligibility as published: CIBIL about 675+ generally needed
- No collateral required
- Fixed and structured EMI plans
- Online application with faster approval
- Balance transfer facility available
Before you apply for a business loan
- Rate basis: Banks usually link floating rates to the repo rate. NBFCs often quote a wider range and start higher.
- Term loan or overdraft: A term loan is repaid in fixed instalments. An overdraft lets you draw and repay as you need and charges interest on the amount used.
- Business vintage: Most loan providers want the business to have run for a minimum period and to show steady turnover. Ask for the cut-off.
- Prepayment: Prepayment charges on business loans differ by loan provider and by loan type. Get the rule in writing.
RBI requires every loan provider to hand you a Key Fact Statement before you sign. It shows the rate, every fee, the APR and the total you will repay.
Terms used on this page
Plain meanings of the terms this comparison uses.
Starting rate: The lowest rate a loan provider advertises for a product. Most borrowers are offered a higher rate, because the final rate depends on credit score, income, employer and loan amount.
APR: Annual percentage rate. It adds the processing fee and other charges to the interest rate, so it shows the yearly cost of the loan better than the interest rate alone.
Key Fact Statement: A short summary the loan provider gives you before you sign. It lists the interest rate, every fee, the APR and the total amount you will repay. RBI requires it for retail loans.
Floating rate and repo rate: A floating rate moves with a benchmark, and for banks that is usually the RBI repo rate, the rate at which RBI lends to banks. A fixed rate stays the same for the period you agree.
Processing fee: A one-time charge for handling the application. It is usually a percentage of the loan amount plus GST, and it is often deducted before the money reaches you.
Credit score: A number from 300 to 900 that shows how you have repaid past loans and cards. A higher score usually gets you a lower rate.
Sources and last check
Every figure above is read from the loan provider's own website and was checked on 12 October 2026. A blank means the page does not show that figure, and we never estimate one.
- Federal Bank: federal.bank.in/business-loans federal.bank.in/loan-rate
- Tata Capital: tatacapital.com/business-loan/rates-and-charges.html
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More business loan comparisons
Federal Bank vs Tata Capital: every loan type on one page · All business loan comparisons · Business loan guide · Business loan EMI calculator
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Frequently asked questions
Which is better for a business loan: Federal Bank or Tata Capital?
Federal Bank has the lower published starting business loan rate at 10.85%, against 12% at Tata Capital. Rate is only one part of the cost, so also compare the processing fee, the prepayment terms and the total repayable amount in the Key Fact Statement.
Which has the lower business loan interest rate: Federal Bank or Tata Capital?
Federal Bank has the lower published starting business loan rate at 10.85%, against 12% at Tata Capital. The published ranges run to Federal Bank up to 16.60% and Tata Capital up to 30%, so the rate you are offered can sit well above the starting rate.
What is the business loan processing fee at Federal Bank and Tata Capital?
Federal Bank: not published. Tata Capital: Up to 3% of loan amount + taxes. Fees can change, so confirm the amount in rupees, with GST, before you accept.
What is the maximum business loan tenure at Federal Bank and Tata Capital?
Federal Bank: 120 months. Tata Capital: 60 months. A longer tenure lowers the EMI and raises the total interest.
Can I prepay or foreclose a business loan early at Federal Bank and Tata Capital?
Federal Bank: not published. Tata Capital: Part-prepayment 4.5% of amount prepaid; foreclosure 4.5% of principal outstanding. Ask whether the rate on your loan is fixed or floating, because the charges depend on it.
How much business loan can I get from Federal Bank and Tata Capital?
Federal Bank: Up to Rs 20 crore (rate table scope). Tata Capital: not published. The amount you are offered depends on your income, credit profile and the security you give.
Who is eligible for a business loan at Federal Bank and Tata Capital?
Federal Bank: Individuals, proprietorships, partnerships, LLPs, companies in manufacturing, services or trading. Tata Capital: CIBIL about 675+ generally needed. Each loan provider can ask for more documents once you apply.
Are Federal Bank and Tata Capital regulated by the RBI?
Yes. Federal Bank is a private bank, Tata Capital is an NBFC, and all lend under RBI rules, including the requirement to give you a Key Fact Statement before you sign.
Where do these business loan figures come from?
From the official pages of Federal Bank and Tata Capital, opened and checked on 12 October 2026. The sources are listed at the bottom of this page. We show a blank where a loan provider does not publish a figure, and we do not estimate one.
KhatuLoans is not a loan provider and is not paid by the loan providers named here to rank them. Rates, fees and eligibility change; always confirm with the loan provider. Read our editorial policy and how we make money.