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₹20 Lakh business loan available on Bajaj Markets can help you secure the required financing with minimal effort. With this option, benefit from flexible repayment options, competitive interest rates, and a user-friendly online process tailored to meet your needs.

Calculate EMI for ₹20 Lakh Business Loan

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Tenure
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Rate of Interest
Business Loan
Your Monthly Business Loan EMI
Principal Amount
Total Interest
Total Amount Payable
Amortization Schedule
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₹20 Lakh Business Loan Interest Rates, Fees, and Charges

Below are the essential fees and charges associated with a ₹20 Lakh business loan:

Lender

Starting Interest Rate (p.a)

Associated Charges

Bajaj Finance

14.00%

  • Processing fee: Up to 3.54% (Inclusive of applicable taxes) of the loan amount

  • Foreclosure charges: Up to 4.75% of the prepaid amount + GST

IIFL Finance

16.50%

  • Processing fee: 2% to 6% of the loan amount + GST

  • Convenience fee: ₹500

FlexiLoans

18.00%

  • Processing fee: Up to 2.5% of the loan amount

KreditBee

18.00%

  • Processing fee: 3% to 4.25%

  • Foreclosure charges: Nil

  • Late payment fee: 0.1% per day on the default amount

Lendingkart

19.20%

  • Processing fee: Up to 3% of the loan amount

Protium

20.50%

  • Processing fee: 1% - 6%

  • Foreclosure charges: 4% onwards

Indifi

22.00%

  • Processing fee: Up to 3% of the loan amount + GST

  • Foreclosure charges: 4% of principal outstanding 

U GRO Capital 

24.00%

  • Processing fee: Nil

  • Foreclosure charges: 4% onwards

*Disclaimer: The mentioned rates are subject to change at the lender’s discretion.

EMI Amount for a Business Loan of ₹20 Lakhs

Let’s assess the monthly instalments you may be required to make on your ₹20 Lakh business loan. The EMI is calculated on the basis of the loan amount, interest rate, and tenure. Assume you took the required ₹20 Lakh business loan at an interest rate of 14% p.a. for a tenure of 60 months. In this case, your EMI would amount to ₹46,536.50.

Here’s a breakdown of how the monthly instalment will contribute towards servicing the loan and other essential details:

Tenure

Principal Paid

Interest Charges

Outstanding Dues

1st Year

₹2,97,019

₹2,61,421

₹17,02,982

2nd Year

₹3,41,375

₹2,17,063

₹13,61,607

3rd Year

₹3,92,356

₹1,66,081

₹9,69,250

4th Year

₹4,50,953

₹1,07,485

₹5,18,298

5th Year

₹5,18,298

₹40,141

₹0

*Note: These are approximate values and are meant only for illustration. For actual EMI values, reach out to your lender.

Keep in mind that manually calculating EMIs can be time-consuming and prone to errors. Instead, use the business loan EMI calculator on Bajaj Markets for fast and precise calculations.

Eligibility Criteria

The eligibility requirements for the loan may differ depending on the lender you choose. However, here are some common requirements you are usually asked to fulfil to secure a ₹20 Lakh business loan:

  • Citizenship: Indian 

  • Age: Between 21 and 60 years

  • Employment: Self-employed individual with a registered business

  • Business Vintage: At least 1 year

  • Business Turnover: At least ₹1.5 Lakhs per year

  • Business Type: Sole proprietorship, partnership, limited liability partnership, or private limited company

Documents Required

Here is a list of documents you may need to submit when applying for a ₹20 Lakh business loan:

Identity Proof: Any one of the following

  • PAN Card

  • Aadhaar Card

  • Passport

  • Driving Licence

  • Voter ID

Address Proof: Any one of the following

  • Aadhaar Card

  • Passport

  • Utility Bills

  • Rent/Lease Agreement

Income Proof:

  • Bank statements for the last 6 months

  • Income Tax Returns (ITR) of the past 2 financial years

  • Profit & Loss (P&L) statements and audited balance sheets for the last 2 years

Business Proof: As applicable

  • Registration certificate of your business

  • Memorandum and Articles of Association 

  • Partnership Deed 

  • Sole Proprietorship Declaration 

Alongside these, you may be required to furnish some other documents. Be sure to get a complete list of the paperwork required by the lender before applying for the loan. This ensures a smooth and hassle-free application process.

How to Apply for a ₹20 Lakh Business Loan

Follow these simple steps to apply for a ₹20 Lakh Business Loan on Bajaj Markets:

  • Click on the ‘Check Eligibility’ button on this page

  • Provide your personal and business details

  • Enter ₹20 Lakh as your loan amount and choose a suitable tenure

  • Submit your application form 

After this, your application will be verified. The lender will reach out to you for further proceedings.

Frequently Asked Questions

What are the benefits of taking a ₹20 Lakh business loan?

A ₹20 Lakh business loan helps you get the required financial flexibility to expand your business operations. You can use the loan amount to purchase advanced equipment and even manage your working capital efficiently. The loan often comes with competitive interest rates, flexible repayment options, and quick disbursal.

Can I get a ₹20 Lakh loan for business without collateral?

Yes, many lenders offer unsecured business loans of up to ₹20 Lakh, which do not require collateral. However, approval depends on factors such as your credit score, business turnover, and repayment capacity. A strong financial profile increases your chances of obtaining a collateral-free loan.

What is the repayment tenure for a ₹20 Lakh business loan?

The repayment tenure for a ₹20 Lakh business loan typically ranges from 12 months to 96 months. You can choose a tenure that aligns with your financial planning and cash flow. Opting for a longer tenure reduces the EMI burden but may increase the overall interest paid.

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