Bajaj Finance Business Loan

• Business Experience

This essentially refers to the amount of experience that you have in your chosen area of business. The higher the experience, the easier it will be to avail a business loan at an affordable interest rate.

• Monthly Revenue of your Business

Regular and stable income has a strong bearing on your ability to repay the business loan. Lenders typically look at your business income before deciding the interest rate at which to offer you business financing.

• Collateral

This means the security that you are willing to pledge for availing the business loan. Collateral such as home equity, deposits, equipment and investment in real estate can be pledged as a security. The higher the value of the secured asset, the higher the chances of you getting the business loan at an affordable interest rate. 

• Loan Amount: This is the principal loan amount that you wish to avail.

• Rate of Interest: This is the expected interest rate which you must pay to service the loan. It is basically the cost of borrowing the loan.

• Loan Repayment Tenure: As the name itself indicates, this is the timeframe in which you will be required to repay your Bajaj Finance Business Loan.

In order to help you understand how the Bajaj Business Loan EMI calculator works, let us look at an example. Assume you wish to borrow up to ₹20 Lakhs as a business loan from a bank/NBFC at a preferred interest rate of 18% p.a. for a tenure of 10 years. 

In order to calculate your EMI amount manually, you can use the below formula:

E = P*r*(1+r)^n / ((1+r)^n-1)

where, 

• ‘E’ is the EMI amount,

• ‘P’ is the Principal Loan Amount, 

• ‘r' is the applicable rate of interest calculated every month, and

• ‘n’ is the tenure or duration of the loan

 Your EMI in such a scenario will be:

₹25 lakh*0.010*(1+0.015)^120/((1+0.015)^120-1))= ₹49,308 per month

This implies that in a span of 10 years, you will end up paying ₹59,16,960, of which 

₹34,16,960 will be the total amount that the borrower will pay as interest.

• Mudra Loan: The Pradhan Mantri Mudra Yojana (PMMY) provides Business Finance to MSME owners so that they can take care of capital expenses and/or operating costs. The Mudra loan scheme has three categories: Shishu, Kishore, and Tarun, which are given to SME owners depending on their scale of operations and business goals. These loans range from ₹50,000 to 10,00,000.

• Business Loan for Women: With business loans for women, female entrepreneurs can support themselves financially and ensure their enterprises’ growth. In order to apply for the same, you can visit the ‘Business loan for Women’ section and also know about the benefits that can be availed with a small business loan.

• Business Term Loan: A business term loan can be used to finance high-cost investments such as the expansion of your business or purchasing essentials like new machinery. These loans are given out so that your business keeps running smoothly.

• Working Capital Loan: Avail this loan to finance the daily expenditures that your business might encounter. Different businesses take working capital loans for a variety of purposes. Working capital finance frees up cash to help the business grow. It is often used for specific growth projects, such as taking on a bigger contract or investing in a new market. Some businesses need it for the seasonal demands based on their industry type or even for managing the credit cycle. 

• MSME Loan: You can also avail an MSME/SME loan in order to meet the working capital requirements of your business. An MSME loan can be used for several purposes such as upgrading your company’s infrastructure, buying/repairing machinery, and purchasing raw materials, among others.