At Bajaj Markets, you can apply for a business loan at affordable interest rates and low processing charges. By getting business loans at lower interest rates, your business is sure to scale greater heights
Business Loan Interest Rates and Charges
Leading financial institutions offer competitive interest rates on business loans that can be repaid through a flexible repayment tenure, thereby facilitating affordable EMIs. The listed informative table helps you attain a detailed understanding of the latest business loan interest rates, processing fees, and foreclosure charges that you can avail through leading Indian banks and NBFCs.
Bank/NBFC |
Interest Rate |
Processing Fee |
Prepayment/Foreclosure Charges |
18% onwards |
Up to 1% of the loan amount |
4% of the outstanding loan amount + Applicable taxes |
|
14% onwards |
Up to 2% of the loan amount |
Nil (The option of foreclosure is allowed only after the first EMI is fully paid) |
|
15% onwards |
NA |
NA |
|
12% onwards |
1.5% - 2.5% of the loan amount |
NA |
|
16.50% onwards |
2.50%-4% of the loan amount + GST |
NA |
|
28%-29.5% |
2.5% of the loan amount + Applicable govt. taxes | 7% of loan amount + Applicable govt. taxes | |
16% onwards |
3% of the loan amount + GST | Foreclosure Charges: 4% of principal outstanding Prepayment Charges: No charges if done before 27th of the month* |
Disclaimer: The interest rates and associated charges can vary from one lending partner to the other and are subject to policy changes of the partner.
Types of Interest Rates
There are two types of interest rates associated with a business loan.
Fixed Interest Rate: The fixed interest rate is calculated by considering the entire loan amount, over the repayment tenure. The interest is not altered based on the fact that you will be paying a monthly EMI that would, in turn, decrease the principal amount with each payment. Simply put, the interest rate remains standard throughout the duration of the loan.
Reducing Balance Interest Rate: This type of interest rate is calculated on the diminishing principal loan amount. The payable EMI is altered each month as it comprises the interest on the outstanding loan amount. Thus, the EMI you pay for subsequent months reduces as you near the closure of the loan.
How to avail Business Loan at Low Interest Rate?
If you are looking to secure a business loan at a low interest rate, you must follow some practical techniques that include:
Maintain a high credit score that ranges above 750
Ensure financial stability
Maintain a good loan repayment history
Ensure timely bill, EMI, and credit card payments
Ensure a stable income
Build a healthy relationship with a bank or lender over time
Maintain old bank accounts and credit cards
Apply for a business loan through reputed lenders or banks
Submit valuable collateral when securing the business loan
FAQs on Business Loan Rates
-
✔️What factors decide the business loan rate of interest?
The interest rate depends on the borrower’s nature of the business, credit score, business turnover, business vintage, and loan collateral.
-
✔️How easy is it to get a business loan?
If you have an excellent credit score, good business vintage, and a stable turnover, it is very easy to get a business loan.
-
✔️Is there any need to provide collateral to avail a business loan?
A business loan is an unsecured loan. Hence, you typically need not provide any collateral. Regardless, in some cases, wherein the credit score, business vintage, or business turnover is not as per the lender’s eligibility standards, the borrower might have to pledge a collateral.
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✔️What is the repayment period of a business loan?
The repayment period of a business loan typically ranges from 1-5 years.
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✔️How is interest on a business loan calculated?
The interest rate is determined based on the borrower’s credit score, the loan amount, the repayment history, relationship with the lender, and other business particulars such as turnover, vintage, etc.
