LIC vs Tata Business Loan, 2026.
Reviewed by Jay Patel· Last reviewed: stale
A ledger-columns read on LIC Housing Finance and Tata Capital— rate, EMI, fee, fine print. Which one wins your file, not the pitch deck.
LIC vs Tata — Business Loan Comparison
Key parameters compared side by side.
| Parameter | LIC | Tata |
|---|---|---|
| Interest Rate (p.a.) | 11.5% – 15% | 11% – 15.5% |
| Processing Fee | 1.50% (min Rs 10,000) | 2.00% (min Rs 10,000) |
| Max Loan Amount | Rs 3 Cr | Rs 5 Cr |
| Max Tenure | 5 Years | 6 Years |
| Bank Type | NBFC | NBFC |
| Founded | 1989 | 2007 |
| Headquarters | Mumbai | Mumbai |
Interest Rate (p.a.)
LIC
11.5% – 15%
Tata
11% – 15.5%
Lower/better: Tata
Processing Fee
LIC
1.50% (min Rs 10,000)
Tata
2.00% (min Rs 10,000)
Max Loan Amount
LIC
Rs 3 Cr
Tata
Rs 5 Cr
Lower/better: Tata
Max Tenure
LIC
5 Years
Tata
6 Years
Lower/better: Tata
Bank Type
LIC
NBFC
Tata
NBFC
Founded
LIC
1989
Tata
2007
Headquarters
LIC
Mumbai
Tata
Mumbai
Rates as of April 2026. Subject to change based on RBI policy and bank revisions.
EMI Comparison
Estimated EMI for Rs 20 Lakh business loan for 5 years at each bank's lowest rate.
LIC
Tata
Savings: Choosing Tata saves you approximately ₹500 per month, or ₹30,000 in total interest over the loan tenure.
Feature Comparison
Key features offered by LIC and Tata for business loan.
| Feature | LIC | Tata |
|---|---|---|
| Property-backed business loans | ||
| Competitive NBFC rates | ||
| Quick processing | ||
| Pan-India presence | ||
| Unsecured business loans | ||
| Working capital financing | ||
| Quick disbursement | ||
| Pan-India coverage |
Property-backed business loans
Competitive NBFC rates
Quick processing
Pan-India presence
Unsecured business loans
Working capital financing
Quick disbursement
Pan-India coverage
Which Is Better — LIC or Tata?
It depends on your priorities. Here is a quick guide.
Choose LIC If...
- Lower maximum rate (15% vs 15.5%)
Choose Tata If...
- Lower starting interest rate (11% vs 11.5%)
- Higher max loan amount (Rs 5 Cr vs 3 Cr)
- Longer max tenure (6 yrs vs 5 yrs)
Still unsure? Contact Money Matrix Hub for a free personalised recommendation based on your income, credit score, and loan requirement.
Eligibility Comparison
General eligibility criteria for business loan at both banks.
LIC Eligibility
- Business vintage: 2+ years (ITR required)
- Min annual turnover: Rs 15 Lakh
- CIBIL score: 650+ preferred
- Valid GST registration
- Age: 21–65 years at loan maturity
Criteria may vary. Contact Money Matrix Hub for exact eligibility assessment.
Tata Eligibility
- Business vintage: 2+ years (ITR required)
- Min annual turnover: Rs 15 Lakh
- CIBIL score: 650+ preferred
- Valid GST registration
- Age: 21–65 years at loan maturity
Criteria may vary. Contact Money Matrix Hub for exact eligibility assessment.
Frequently Asked Questions
Common questions about LIC vs Tata business loan.
Which bank has a lower business loan interest rate in 2026 — LIC or Tata?
Tata currently offers a lower starting rate of 11% p.a. for business loan. However, the actual rate you receive depends on your credit score, income, and loan amount. Money Matrix Hub can help you get the best negotiated rate from both banks.
What is the maximum business loan amount I can get from LIC vs Tata?
Tata offers a higher maximum loan amount of up to Rs 5 Cr. LIC offers up to Rs 3 Cr while Tata offers up to Rs 5 Cr for business loan.
Which bank charges a lower processing fee for business loan — LIC or Tata?
LIC charges a processing fee of 1.50% (min Rs 10,000), while Tata charges 2.00% (min Rs 10,000). Processing fees are often negotiable, and Money Matrix Hub can help waive or reduce these charges.
Should I choose LIC or Tata for business loan in 2026?
The best choice depends on your specific needs. LIC offers rates from 11.5%–15% with a max tenure of 5 years, while Tata offers 11%–15.5% with 6 years tenure. Contact Money Matrix Hub for a personalised comparison based on your profile.
Can Money Matrix Hub help me apply for a business loan from both LIC and Tata?
Yes. Money Matrix Hub is an authorised DSA partner for both LIC and Tata. We can submit parallel applications at no extra cost and help you pick the best sanction offer. Our service is 100% free for borrowers.
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