₹50 Lakhs Business Loan

As your business grows, so do its financial needs—whether for expansion, new projects, or rising costs. Funding options like a business loan of an amount as big as ₹50 Lakhs can support these goals.

Moreover, choosing the right repayment plan ensures easy, stress-free repayment without straining your day-to-day budget. Here’s how the repayment may look across two different tenures:

• For a 36-month tenure at an 18% p.a. interest rate, the EMI comes to around ₹1,80,762, with a total interest amount of about ₹15,07,431. 

• If you choose a 72-month tenure, with the same interest rate, it lowers the EMI to roughly ₹1,14,039, but raises total interest amount to nearly ₹32,10,805.

With a simple application process, fast approval, and no collateral required, a ₹50 Lakh business loan can be a smart way to manage your financial requirements.

Before choosing a business loan, compare the interest rates offered by different lenders to find the best option for you. Here is a list of the lenders providing a ₹50 Lakh business loan on Bajaj Markets.

The EMI for a business loan of ₹50 Lakhs is influenced by factors such as the loan amount, interest rate, and tenure. For example, at 14% p.a., over a tenure of 60 months, the EMI would be ₹1,16,341. 

This amount includes both the principal and interest components, with the interest portion reducing over time as the principal is repaid. Using a business loan EMI calculator could assist in estimating monthly instalments for various tenures and interest rates, helping with financial planning.

Here is a breakdown of how your EMI is structured based on a 14% p.a. interest rate and a 5-year tenure:

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

For instance, your ₹50 Lakhs business loan's interest rate is 14% p.a., and the loan tenure is 60 months. You can calculate your EMI using the given 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

Using the formula, the EMI will be ₹1,16,341. The total interest will be ₹19,80,475, and the total amount payable will be ₹69,80,475.

To qualify for a business loan of ₹50 Lakhs, you may need to meet these basic criteria:

1. Citizenship: Must be an Indian citizen

2. Credit Score: Maintain a CIBIL score of 700 or above

3. Profession: Self-employed professionals (e.g., doctors, CAs) or non-professionals (e.g., traders, manufacturers)

4. Age: Above 21 years of age

5. Business Type: Registered partnership, LLP, or private limited company

6. Business Vintage: At least 1 year of business operations

7. Annual Turnover: Minimum ₹1 Lakh as per ITR

You need to submit a few important documents for a business loan of ₹50 Lakhs. These help the lender verify your identity, business details, and financial status before approving the loan.

You can choose to apply for a business loan of ₹50 Lakh from the website or download the Bajaj Markets app. Follow these steps:

1. Click the 'Check Eligibility' button

2. Provide accurate personal and business details

3. Choose the desired loan amount and tenure

4. Complete and submit the application form

Following this, a representative will reach out to you to further process your application.

Suppose you take a business loan of ₹50 Lakhs at an interest rate of 14% p.a. and a tenure of 24 months. To understand what your repayment would look like, check out the amortisation schedule given below:

Your CIBIL score, ranging from 300 to 900, reflects how well you manage credit. Applying for and repaying a business loan can affect your score in the following ways:

• Pre-approval Impact:

When you apply for a loan, lenders carry out a credit check to review your credit history. Submitting multiple loan applications within a short period may temporarily reduce your CIBIL score, as each application triggers a separate enquiry. To improve approval chances and secure favourable loan terms, you need to have a credit score of 700 or higher.

• Post-repayment Impact:

Your repayment behaviour after loan approval has a lasting effect on your credit score. Making timely repayments of your Equated Monthly Instalments (EMIs) improves your CIBIL score, particularly when the loan is linked to your credit profile. Any defaults or missed payments significantly lower your score and reduce your eligibility for future credit.

A business loan of ₹50 lakhs can help meet various financial needs for your enterprise. You can use this amount for several important purposes to grow and manage your business more effectively. Some of them include:

• Business Expansion

You can use the loan to open a new branch, establish a new office, or expand your existing shop or factory. It enables you to reach new locations and attract a broader customer base.

• Machinery and Equipment Purchase

The loan can finance the purchase of new machines, tools, or equipment. Investing in modern machinery enhances operational speed and improves product quality.

• Working Capital Management

Daily business expenses such as salaries, rent, utility bills, and raw material procurement require consistent cash flow. This loan ensures you have sufficient working capital to run your operations smoothly.

• Office or Shop Renovation

Renovation needs like repairs, new furniture, or upgrades to your workspace can be managed with this loan. An improved office or shop environment leaves a positive impression on customers.

• Technology Upgrade

Businesses require updated software, computers, and digital tools to enhance efficiency. This loan supports investments in better technology, helping your operations become more agile and competitive.

• Marketing and Advertising

The loan can fund initiatives like online advertisements, printed marketing materials, and social media campaigns. Strategic marketing efforts help attract new customers and drive business growth.

• Hiring Skilled Professionals

Expanding your team with experienced employees, consultants, or specialists can be facilitated through this loan. Their expertise strengthens your business capabilities and supports long-term success.