₹25 Lakhs Business Loan

If you are a business owner looking to expand operations, upgrade infrastructure, or purchase equipment, a ₹25 Lakh business loan can be a wise choice. On Bajaj Markets, you can access funding from several lenders at competitive interest rates starting from 14% p.a.

You can select a tenure that aligns with your cash flow and repay through easy EMIs. Here is how the monthly repayment may look:

• For a 36-month tenure at an interest rate of 14%, the monthly EMI will be approximately ₹85,444, with a total interest outgo of around ₹5,75,986.

• For a 96-month tenure at an interest rate of 14%, the monthly EMI will be approximately ₹43,428. The total interest payable over the loan period will be around ₹16,69,160.

A shorter tenure reduces total interest costs, while a longer tenure results in lower monthly payments but increases the overall interest payable.

Compare top lenders offering business loans of ₹25 Lakhs on Bajaj Markets. Check the table below for minimum interest rates, maximum amounts, and more.

When you take a ₹25 Lakh business loan, you typically have the flexibility to choose a repayment tenure that suits your requirements. Your EMI amount will vary depending on the tenure you select. 

Consider the table below showing how your EMI could change for different tenures at the interest rate of 14% p.a.

You may need to pay additional charges along with the EMI and interest rate. The details are provided below.

Assume you have taken a business loan of ₹25 Lakhs at an interest rate of 12% p.a. for 36 months You can calculate your business loan EMI using the following formula:

EMI = [P x R x (1+R)^N] / [(1+R)^N-1]

where:

• P = Loan amount (Principal)

• R = Monthly interest rate (Annual interest rate ÷ 12 ÷ 100)

• N = Loan tenure in months

This results in an approximate EMI of ₹83,035 per month. You may adjust the loan amount, interest rate, or tenure to view different EMI outcomes. Alternatively, you can use an online business loan EMI calculator for quick and accurate results.

To qualify for a business loan of up to ₹25 Lakhs, you may need to meet the following eligibility requirements:

1. Age: Over 21 years
2. Citizenship and Creditworthiness: Indian with a CIBIL score of over 700
3. Eligibility: Self-employed professional/non-professionals 
4. Business Type: Partnerships, LLPs, and private limited companies
5. Experience: Minimum 1 year in current business 
6. Income: Annual income of at least ₹1 Lakh as per ITR

Here are some essential documents you might have to submit when applying for a business loan of ₹25 Lakhs:

Follow these simple steps to apply for the loan on Bajaj Markets’s website as well as the mobile app:

1. Select the ‘Check Eligibility’ option on this page

2. Enter personal and business information in the digital application form

3. Pick the loan amount and tenure that suits your needs

4. Submit the form for prompt verification 

Following this, a representative will reach out to you for further verification and loan approval. 

Suppose you take a business loan of ₹25 Lakhs at an interest rate of 14% p.a. with a tenure of 6 months. The following table presents the monthly breakdown of payments, including the principal amount, interest component, and remaining loan balance:

Your CIBIL score reflects your creditworthiness and is influenced at both the pre-approval and post-repayment stages of a business loan.

• Pre-approval Impact

When you apply for a loan, lenders carry out a hard enquiry on your credit report. Multiple enquiries within a short period may slightly reduce your score. Maintaining a high score increases your chances of approval with favourable terms.

• Post-repayment Impact

Regular and timely EMI repayments help improve your CIBIL score by demonstrating responsible credit behaviour. In contrast, delayed or missed payments can significantly lower your score and reduce your eligibility for future loans.

A business loan of up to ₹25 Lakhs provides the financial flexibility needed to support and grow your business. Here are several ways you can use the funds:

• Starting a New Business

Starting a new business involves various upfront expenses, such as renting office space, purchasing furniture, and setting up utilities. You also need to invest in initial marketing campaigns and branding to build awareness for your business from the ground up.

• Expanding Business Operations

When your current business performs well, a ₹25 Lakh loan helps expand operations by opening new branches or stores. You also have to increase your workforce, hire skilled employees, or enhance infrastructure to accommodate business growth.

• Managing Cash Flow Issues

Cash flow challenges often occur in businesses, particularly during off-season or periods of reduced sales. This business loan provides working capital to cover bills, payroll, and other essential expenses without interrupting daily operations.

• Purchasing Equipment

Use this loan to purchase essential equipment that boosts production. You can also use the funds to stock up on inventory, meet customer demand, or take advantage of bulk purchasing opportunities.

• Handling Emergency Expenses

Unexpected emergencies, such as equipment failure or urgent repairs, disrupt business operations. A business loan ensures you have the financial cushion to manage unforeseen expenses without affecting cash flow or growth plans.