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BAJAJ FINSERV DIRECT LIMITED

₹40 Lakh Business Loan

A ₹40 Lakh Business Loan can provide the financial backing needed to manage working capital, purchase equipment, or fund expansion. Bajaj Markets allows you to compare loan options with interest rates from 14% per annum and repayment periods extending up to 96 months.

Your Business Loan EMI

₹ 69,486

Total Interest Amount

₹ 2,670,656

Principal Amount

₹ 40,00,000

Total Payable Amount

₹ 66,70,656

Loan Amount

Interest Rate

- +

Tenure

- +

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You can also make instant comparisons between loan offers from over 10+ business loan providers on Bajaj Markets.

Overview

A ₹40 Lakh Business Loan provides vital financial support for enterprises aiming to expand, upgrade infrastructure, purchase equipment, or strengthen working capital. With flexible repayment options aligned to your capacity, a business loan of up to ₹40 Lakh enables you to manage finances efficiently while focusing on growth. When structured wisely, this funding solution helps you seize opportunities, address challenges, and achieve long-term business stability.

Compare ₹40 Lakh Business Loan Interest Rates by Various Banks and NBFCs

Here you can compare interest rates and repayment terms offered by leading banks and NBFCs before choosing a ₹40 Lakh Business Loan:

Available Offerings	Starting Interest Rate (p.a.)	Maximum Tenure
Bajaj Finance Business Loan	14.00%	96 months
FlexiLoans Business Loan	18.00% (reducing)	42 months
L&T Finance Business Loan	15.50%	60 months
UGRO Capital Business Loan	24.00%	72 months
Godrej Capital Business Loan	16.00%	72 months

Disclaimer: The interest rates and tenures mentioned are indicative and may vary based on the lender’s terms and your eligibility. Please verify the latest details directly with the respective bank or NBFC before applying.

₹40 Lakh Business Loan EMI for Different Tenures

When you take a ₹40 Lakh Business Loan, your monthly EMI depends on the chosen tenure. Shorter tenures lead to higher EMIs, but lower total interest paid, while longer tenures reduce the EMI but increase the overall interest outgo. Here are examples across different tenure options at a fixed interest rate of 14% p.a.:

Tenure	EMI	Total Interest Payable	Total Repayment
1 Year (12 months)	₹3,58,083	₹3,97,000	₹43,97,000
2 Years (24 months)	₹1,92,044	₹6,09,000	₹46,09,000
3 Years (36 months)	₹1,36,451	₹9,13,000	₹49,13,000
5 Years (60 months)	₹93,225	₹16,94,000	₹56,94,000
8 Years (96 months)	₹68,051	₹22,04,000	₹62,04,000

Disclaimer: The EMI values provided are illustrative and based on a notional interest rate of 14% p.a. Actual EMI, interest outgo, and total repayment will vary depending on the lender’s terms, loan structure, and your eligibility.

₹40 Lakh Business Loan: Fees and Charges

Here you can review the fees and foreclosure charges linked to a ₹40 Lakh Business Loan to understand the total cost of borrowing clearly:

Partner	Processing Fee	Pre-closure Charges (Foreclosure)
Bajaj Finance	Up to 4.72% of the loan amount (inclusive of applicable taxes)	Term Loan – Up to 4.72% Flexi Term Loan – Up to 4.72% Flexi Hybrid Loan – Up to 4.72%
FlexiLoans	Up to 2.5% of the loan amount	-
L&T Finance	Up to 2% + GST	Within 6 months – 10% After 6 months – 5%
U GRO Capital	Nil	4% of the outstanding amount
Godrej Capital	Up to 3% of the loan amount	Up to 6% of the principal outstanding at the time of foreclosure

Disclaimer: The fees and charges mentioned are indicative and subject to change as per the lender’s policies. Please confirm the latest details directly with the bank or NBFC before applying.

How to Calculate Your Business Loan EMI

Understanding your EMI before applying helps you plan repayments better and avoid financial strain. For example, if you take a ₹40 Lakh Business Loan at an interest rate of 14% p.a. with a tenure of 60 months, you can calculate your monthly instalment using this standard formula:

EMI = [P × R × (1+R)N] / [(1+R)N – 1]

Where:

P represents the loan amount, also known as the principal.
R refers to the monthly interest rate, which is calculated by dividing the annual interest rate by 12 and then by 100.
N indicates the loan tenure, expressed in months.

Let’s apply this to a business loan of up to ₹40 Lakh:

Loan amount (P) = ₹40,00,000
Annual interest rate = 14%
Monthly interest rate (R) = 14 / 12 / 100 = 0.01167
Tenure (N) = 60 months

Using the formula:

EMI = ₹93,225
Total interest = ₹16,94,000
Total repayment = ₹56,94,000

This shows how your EMI changes based on tenure and interest rate. A ₹40 Lakh loan for business with shorter tenure means higher EMIs and lower interest, while longer tenure lowers EMIs but raises total interest.

Eligibility and Documents Required for a Business Loan of ₹40 Lakh

To qualify for a business loan of up to ₹40 Lakh, you must meet certain eligibility requirements set by lenders. These criteria help assess your repayment capacity and business stability:

Only Indian citizens are eligible to apply
Applicants must be at least 21 years old
A CIBIL score of 700 or more is generally required
Both self-employed professionals and non-professionals can apply
The business must be a registered entity such as a partnership, LLP, or private limited company
The enterprise should have been in continuous operation for at least one year
The business must show a minimum annual turnover of ₹1 Lakh in its ITR

When applying for a ₹40 Lakh Business Loan, you must submit documents that verify your identity, address, business details, and financial standing:

Identity Proof	Address Proof	Income Proof	Business Proof
PAN card	Aadhaar card	Bank statements (last 6 months)	Sole Proprietorship declaration
Aadhaar card	Passport	ITR with computation	Partnership Deed
Passport	Utility bills	Profit & Loss statement	Memorandum and Articles of Association
Driving Licence	-	-	-

Lenders may ask for extra documents based on your profile, so keeping them ready in advance ensures quicker approval of your ₹40 Lakh loan for business.

How to Apply for a Business Loan of ₹40 Lakh

Applying for a ₹40 Lakh Business Loan is quick and can be done online through the Bajaj Markets website or app. Here are the steps:

Click on the ‘Check Eligibility’ option to begin your application
Enter accurate personal, financial, and business details as requested
Select the preferred loan amount and repayment tenure suitable for your needs
Upload the required documents to support your business loan of up to ₹40 Lakh
Submit the application form for review and processing
A representative will contact you to finalise your ₹40 Lakh loan for business

₹40 Lakh Business Loan Monthly Payment Plan

Understanding how your repayments are structured makes borrowing easier to manage. Here is a detailed amortisation schedule for a ₹40 Lakh Business Loan at 14% p.a. over 24 months:

Month	Payable Amount	Principal	Interest	Balance
Month 1	₹1,92,052	₹1,45,385	₹46,667	₹38,54,615
Month 2	₹1,92,052	₹1,47,081	₹44,971	₹37,07,534
Month 3	₹1,92,052	₹1,48,797	₹43,255	₹35,58,737
Month 4	₹1,92,052	₹1,50,533	₹41,519	₹34,08,204
Month 5	₹1,92,052	₹1,52,289	₹39,762	₹32,55,915
Month 6	₹1,92,052	₹1,54,066	₹37,986	₹31,01,849
Month 7	₹1,92,052	₹1,55,863	₹36,188	₹29,45,986
Month 8	₹1,92,052	₹1,57,682	₹34,370	₹27,88,304
Month 9	₹1,92,052	₹1,59,521	₹32,530	₹26,28,783
Month 10	₹1,92,052	₹1,61,382	₹30,669	₹24,67,401
Month 11	₹1,92,052	₹1,63,265	₹28,786	₹23,04,135
Month 12	₹1,92,052	₹1,65,170	₹26,882	₹21,38,965
Month 13	₹1,92,052	₹1,67,097	₹24,955	₹19,71,868
Month 14	₹1,92,052	₹1,69,046	₹23,005	₹18,02,822
Month 15	₹1,92,052	₹1,71,019	₹21,033	₹16,31,803
Month 16	₹1,92,052	₹1,73,014	₹19,038	₹14,58,790
Month 17	₹1,92,052	₹1,75,032	₹17,019	₹12,83,757
Month 18	₹1,92,052	₹1,77,074	₹14,977	₹11,06,683
Month 19	₹1,92,052	₹1,79,140	₹12,911	₹9,27,543
Month 20	₹1,92,052	₹1,81,230	₹10,821	₹7,46,313
Month 21	₹1,92,052	₹ 1,83,345	₹8,707	₹5,62,968
Month 22	₹1,92,052	₹1,85,484	₹6,568	₹3,77,484
Month 23	₹1,92,052	₹1,87,648	₹4,404	₹1,89,837
Month 24	₹1,92,052	₹1,89,837	₹2,215	₹0

Disclaimer: The figures shown are illustrative and may vary depending on the lender’s terms and your loan profile. Always confirm the exact repayment schedule with your bank or NBFC.

Impact of Pre- and Post-Business Loan Approval on Your CIBIL Score

Lenders place high importance on your CIBIL score as it reflects how responsibly you manage credit. A strong score not only increases your chances of approval but also helps you secure better terms on a ₹40 Lakh Business Loan. Here is how both pre- and post-loan stages can influence your CIBIL score:

Pre-approval Impact

When you apply for a ₹40 Lakh loan for business, lenders perform a hard credit check to assess your repayment history. Multiple applications within a short time can temporarily reduce your score, as each check is recorded as an enquiry. To increase approval chances and access better loan terms, it is advisable to maintain a CIBIL score of 700 or above.

Post-approval Impact

Your repayment behaviour has a long-term effect on your score. Making regular and timely EMI payments on your business loan of up to ₹40 Lakh strengthens your credit profile and boosts your CIBIL score. On the other hand, defaults or delays in repayment can lower your score significantly and reduce your eligibility for future credit.

Uses of a ₹40 Lakh Business Loan

Here are the different ways you can use a ₹40 Lakh Business Loan to strengthen, expand, and stabilise your enterprise:

Business Expansion

Open a new branch, office, or outlet to reach more customers and grow your market presence.

Machinery and Equipment Purchase

Invest in modern machines or tools to improve efficiency and product quality.

Working Capital Management

Cover everyday expenses like salaries, rent, utilities, and raw materials to maintain smooth operations.

Office or Shop Renovation

Upgrade your workspace with repairs, furniture, or redesigns to create a better impression.

Technology Upgrade

Adopt advanced software, IT systems, or digital tools to streamline business processes.

Marketing and Advertising

Fund online ads, social media campaigns, or traditional promotions to increase visibility and attract customers.

Hiring Skilled Professionals

Recruit experienced staff or consultants whose expertise strengthens business capabilities and long-term growth.

Inventory Purchase

Use the loan to stock raw materials or finished goods, especially during peak or seasonal demand.

Business Diversification

Introduce new products or services to expand revenue streams and reduce business risk.

Compliance and Licencing Costs

Meet expenses related to regulatory requirements, permits, or licences to keep operations legally sound.

Emergency Fund Allocation

Maintain a financial cushion to handle unexpected disruptions or slowdowns with confidence.

Other Instant Business Loan Options

1 Lakh Business Loan	2 Lakh Business Loan	3 Lakh Business Loan
5 Lakh Business Loan	10 Lakh Business Loan	15 Lakh Business Loan
25 Lakh Business Loan	30 Lakh Business Loan	50 Lakh Business Loan

Frequently Asked Questions

How can you get a ₹40 Lakh loan for business?

You can get a ₹40 Lakh loan for business by applying online with a bank or NBFC, meeting eligibility criteria such as age, income, business stability, and credit score, and submitting the required documents for approval.

Can you get a ₹30 Lakh business loan?

Yes, you can get a ₹30 Lakh business loan from banks and NBFCs if you meet eligibility norms. The loan can be used for expansion, working capital, or asset purchases, with terms varying by lender and your financial profile.

What CIBIL score is required for a ₹40 Lakh business loan?

Lenders usually require a CIBIL score of 700 or higher for a ₹40 Lakh business loan. A strong score improves approval chances, ensures better interest rates, and reflects your repayment reliability. Lower scores may limit eligibility or lead to higher borrowing costs.

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₹40 Lakh Business Loan

₹ 2,670,656

₹ 40,00,000

₹ 66,70,656

Overview

Compare ₹40 Lakh Business Loan Interest Rates by Various Banks and NBFCs

₹40 Lakh Business Loan EMI for Different Tenures

₹40 Lakh Business Loan: Fees and Charges

How to Calculate Your Business Loan EMI

Eligibility and Documents Required for a Business Loan of ₹40 Lakh

How to Apply for a Business Loan of ₹40 Lakh

₹40 Lakh Business Loan Monthly Payment Plan

Impact of Pre- and Post-Business Loan Approval on Your CIBIL Score

Pre-approval Impact

Post-approval Impact

Uses of a ₹40 Lakh Business Loan

Business Expansion

Machinery and Equipment Purchase

Working Capital Management

Office or Shop Renovation

Technology Upgrade

Marketing and Advertising

Hiring Skilled Professionals

Inventory Purchase

Business Diversification

Compliance and Licencing Costs

Emergency Fund Allocation

Other Instant Business Loan Options

Frequently Asked Questions

How can you get a ₹40 Lakh loan for business?

Can you get a ₹30 Lakh business loan?

What CIBIL score is required for a ₹40 Lakh business loan?

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