Business loans help enterprises to get the additional funding they require. These funds could be for everyday functioning, expansion of business or meeting miscellaneous expenses. But after the disbursement of the loan, enterprises should accordingly plan repayments for the other charges that are applicable on the loan. They should acquire the loan only after gaining complete transparency on every fee and then proceed. There are a few additional costs on business loan like, processing fees, EMI bouncing charges, online account access charges, etc. Let us discuss the charges and their reasons at length:
The processing fee is the minimum amount charged by a financial or non-banking financial institution (NBFC) to process your application. The money is usually used for checking your CIBIL score, administrative charges and approval of the loan. Normally, this charge is deducted from the loan amount before disbursal and the rest of the amount is credited to your registered bank account.
The interest rate is the annual amount charged on the loan that you have availed. This amount is usually divided into twelve months and charged on a monthly basis with the principal amount, merged together otherwise known as Equated Monthly Instalments or EMIs.
EMI Bounce Fees or Late Payment
It is imperative that you pay your EMIs on time. Missing or delaying the payment of any EMI harms your CIBIL score for business loan and you can also get penalised by the lender. This penalty is included in your terms and conditions document and hence an individual must go through these carefully before signing off.
Online Convenience Fees
There is a charge for using the loan services of the lender online. It could be for acquiring loan details or a password, the lenders charge a minimal fee for it. However, many lenders now encourage you to use their mobile applications to avoid such charges.
If your business starts doing well right after acquiring the capital, you may see an influx in cash. The rise in income will make you want to prepay the loan to be debt-free but you may be charged for it. Foreclosure of the loan comes with an additional charge which is called the prepayment fee. However, there are many banks and NBFCs (Non-banking Financial Company) like Finserv MARKETS in India that do not charge any prepayment penalty these days.
With a high credit score, you can apply for a Bajaj Finserv Business Loan available on Finserv MARKETS at the most competitive interest rates. Flexible repayment options, hassle-free online application process has made Finserv MARKETS the most preferred destination for business loans today. What’s more? Your online business loan application can be approved under just 3 minutes and the loan amount can be credited to your bank account within 24 hours! So why wait? Apply for a business loan with us, today!
Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment, and exclusive EMI store, all under one roof- anytime, anywhere!