Difference between a bill discounting and business loan


Bill discounting

Business Loan

Interest rate

Depends on the financial stability and volume of business

Depends on the applicant’s profile, as well as, the business requirements

Nature of loan


Long-term loan, as well as, the working capital loan

Repayment tenure

12 months - 3 years

12 months - 5 years

Amount of loan

Depending on the nature of the trade

The maximum limit of Rs. 1 crore and it may exceed