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A ₹5 Lakh business loan can offer financial assistance to streamline daily operations, fuel business expansion, or cover essential expenses. Lenders on Bajaj Markets offer loans with competitive interest rates, and flexible repayment options tailored to meet various business needs. The simple online application process is designed to offer convenience, potentially reducing the time and effort required.

Calculate the EMI for a Business Loan of ₹5 Lakhs

Loan Amount
Tenure
Months
Rate of Interest
Business Loan
Your Monthly Business Loan EMI
Principle Amount
Total Interest
Total Amount Payable
Amortization Schedule
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Year EMI Principal Interest Balance

Interest Rates, Fees, and Charges for a Business Loan of ₹5 Lakhs

You can compare interest rates offered by different lenders to make an informed choice. Here are the rates for a ₹5 Lakh business loan:

Partner

Starting Interest Rate (p.a.)

Processing Fee

Bajaj Finance

14.00%

Up to 3.54% of the loan amount (inclusive of taxes)

IIFL Finance

16.50%

2.50% of the loan amount

FlexiLoans

18.00%

Up to 2.5% of the loan amount

KreditBee

18.00%

3% to 4.25% of the loan amount

Lendingkart

19.20%

3% of the loan amount

Ambit Finvest

20.00%

Up to 2% of the total loan amount

Protium

20.50%

1% to 6% of the loan amount

Aditya Birla Finance

22.00%

3% to 4% of the loan amount, plus GST

Credit Saison

22.00%

Up to 4.72% of the loan amount (inclusive of taxes)

Indifi

22.00%

Up to 3% of the loan amount, plus GST

InCred

24.00%

Between 2% and 5% of the loan amount

AYE Finance

29.50%

2.5% of the loan amount, plus applicable GST

Disclaimer: Interest rates and terms are subject to change at the lender's discretion.

EMI Amount for a Business Loan of ₹5 Lakhs

The EMI for a ₹5 Lakh business loan is influenced by factors such as the loan amount, interest rate, and tenure. For example, with an interest rate of 14% p.a. and a repayment period of 60 months, the EMI would amount to ₹11,634. This EMI includes both the principal repayment and the interest component, with the interest portion gradually decreasing as the principal balance is repaid over time.

Using an EMI calculator allows you to estimate monthly instalments for varying interest rates and loan tenures, enabling better financial planning. Here’s a breakdown of your EMI, showing its contribution towards loan repayment and associated costs at 14% p.a. over 60 months:

Tenure

Principal Paid

Interest Paid

Outstanding Dues

1st Year

₹74,254.47

₹65,355.07

₹4,25,745.54

2nd Year

₹ 85,343.78

₹54,265.73

₹3,40,401.76

3rd Year

₹ 98,089.19

₹41,520.33

₹2,42,312.58

4th Year

₹1,12,738.03

₹26,871.48

₹1,29,574.55

5th Year

₹1,29,574.55

₹10,034.96

₹0.00

*Disclaimer: The figures mentioned are approximate and intended for illustrative purposes only. For precise EMI details, it’s best to consult your lender directly.

Manually calculating EMIs can be time-consuming and prone to mistakes. To simplify the process, you can use the business loan EMI calculator on Bajaj Markets, which provides instant and accurate results.

Eligibility Criteria

To secure a ₹5 Lakh loan for business, applicants need to meet specific criteria that assess their financial stability and business credibility:

  • Citizenship: Applicants must be Indian citizens

  • Credit Score: A good CIBIL score is mandatory

  • Professionals: Self-employed professionals like doctors and chartered accountants are eligible

  • Non-professionals: Traders, manufacturers, and other self-employed non-professionals can apply

  • Age: Applicants must be between 21 and 60 years

  • Business Type: Partnerships, LLPs, and private limited companies qualify

  • Current Experience: Minimum 1 year in the current business is required

  • Total Experience: At least 5 years of total business experience is necessary

  • Income: Annual income of ₹1.5 Lakh+ as per ITR is mandatory

Documents Required

Submitting the correct documents is essential to ensure a smooth and hassle-free loan application process:

  • Identity Proof: PAN card, Aadhaar card, passport, driving licence, or voter ID is required

  • Address Proof: Aadhaar card, passport, utility bills, or lease agreement can be provided

  • Income Proof: Last six months’ bank statements and Income Tax Returns are mandatory

  • Financial Documents: Certified Profit and Loss statements, balance sheets, and income computation for the last two years are needed

  • Business Proof: Sole Proprietorship Declaration, Partnership Deed, or Memorandum and Articles of Association, depending on the business type

How to Apply

You can easily apply for a business loan by following these steps:

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

  2. Fill in your personal and business information accurately

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

  4. Complete and submit the application form

Frequently Asked Questions

What are the benefits of taking a ₹5 Lakh Business Loan?

A ₹5 Lakh Business Loan can help you fund working capital, purchase equipment, manage operational expenses, or expand your business without using personal savings.

Can I get a ₹5 Lakh Business Loan without collateral?

Yes, you can get a ₹5 Lakh Business Loan without collateral from many lenders, provided you have strong creditworthiness and demonstrate solid business performance.

What is the repayment tenure for a ₹5 Lakh Business Loan?

Repayment tenures for a ₹5 Lakh Business Loan typically range from 12 to 96 months, depending on the lender and your financial profile.

How long does it take to get a ₹5 Lakh Business Loan approved?

Approval time for a ₹5 Lakh Business Loan can vary but can be as quick as 24–48 hours with a complete application.

What happens if I default on a business loan of ₹5 Lakhs?

Defaulting on a ₹5 Lakh Business Loan could negatively impact your credit score, result in additional penalties, and may lead to legal action if unresolved.

Can I prepay a business loan of ₹5 Lakhs?

Yes, prepayment is allowed by most lenders, though some may impose a nominal prepayment charge.

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