Lendingkart Finance Business Loan Interest Rate

Lendingkart Business Loan serves as the right financial aid for all the business-related requirements. While applying for a Business Loan, along with the loan amount, an important factor to consider is the rate of interest. This is because along with the principal amount, you also need to pay the rate of interest as EMI. Knowing this can help you manage the finances well. There are two types of interest rates types: Diminishing rate of interest and flat rate of interest In the diminishing rate of interest model, interest rate is calculated basis the remaining principal amount. As the amount reduces basis the subsequent EMI payments, interest is also applicable basis that amount. In the flat rate of interest model, the rate of interest remains same throughout the repayment tenure and is calculated basis the original loan amount. It does not reduce post EMI payments.

Lendingkart Business Loan Interest Rate in India

Take a look at the Lendingkart Business Loan interest rates and associated information.

Rate of interest

1.6% per month - 2% per month

Tenure of the loan

Maximum up to 36 months

Collateral

NA

Amount of loan

Rs. 50,000 to Rs. 35 Lakhs

Pre-Closure fees

NA

Processing charges

1 to 2% of the loan amount

Time to sanction a loan

Within 3 working days

Eligibility

>Rs. 12 Lakhs p.a. annual turnover

Lendingkart Business Loan Interest Rate Calculator

With the help of Lendingkart Business Loan EMI Calculator, you can calculate your monthly EMIs in a jiffy. All you need to enter is the loan amount, repayment tenure and your preferred rate of interest. Once the values are set, you get the EMI amount that needs to be paid as a repayment amount.

Factors that Affect Lendingkart Business Loan Interest Rates

Following are the factors that affect Lendingkart Business Loan Interest Rates.

  • CIBIL Score

CIBIL Score serves as a yardstick to determine the creditworthiness of the borrower. The score ranges from 300 to 900. A score above 750 indicates that you have a very high chances of availing the loan at attractive interest rates. Thus, Credit Score greatly affects the business loan interest rates.

  • Business Experience

Applicants with a greater business experience stand a high chance of availing the loan. The lenders prefer people who have in business for longer time as it gives them an assurance that they can pay the loan on time. Thus, interest rates can vary according to business experience.

  • Annual Turnover

Annual Turnover also plays an important role in deciding the interest rate on the Business Loan. If your company has higher profit, interest rates can be comparatively low. You can also negotiate with the lender for a lower interest rate, if you have a greater profit.

  • Profit

Similar to annual turnover, higher profits will help you avail the business loans at a lower interest rates.

How Does the Rate of Interest Affect EMI Amount?

The table here shows how interest rate can affect the EMI Amount. The EMI amount is calculated through the Lendingkart Business Loan EMI Calculator.

Principal Amount

Rate of Interest

Tenure

Equated Monthly Instalment (EMI)

₹2,00,000

18%

36 Months

₹7230

₹2,00,000

20%

36 Months

₹7432

₹5,00,000

18%

36 Months

₹18,076

₹5,00,000

20%

36 Months

₹18,581

As you can see, the principal amount and repayment tenure is the same, but when the interest rate was changed, there was a variation in the EMI amount. 

Lendingkart Business Loan Interest Rate FAQs

  • ✔️What factors decide the business loan’s rate of interest?

    The interest rate on the business loan can be decided from the CIBIL Score, annual turnover, business experience etc.

  • ✔️How easy is it to get a business loan?

    It is very easy to apply for a business loan. Set your loan amount, choose the lender as per your preference, check your eligibility and then apply the for the loan.

  • ✔️.What is the typical interest rate on a Lendingkart business loan?

    It is usually between 1.6% per month to 2% per month.

  • ✔️How is interest calculated on a business loan?

    Interest rate is calculated on the basis of loan amount and repayment tenure.

  • ✔️What is the processing fee for business loans?

    It is usually 1-2% of the loan amount.

  • ✔️What is the minimum and maximum business loan repayment tenure?

    The repayment tenure ranges from 1-5 years. 

  • ✔️What are the pre-closure/foreclosure charges for business loans?

    It is usually 4% of the loan amount plus GST.