Business Loan interest rates

Bajaj Finserv Business Loans come with attractive interest rates, starting at 14% per annum, for a sanction going up to Rs. 80 lakh (Inclusive of Insurance Premium, VAS Charges, Documentation Charges, Flexi fees and Processing Fees). This nominal rate of interest, and a transparent list of charges, ensure that you can plan your repayment effectively before you avail of the loan. To aid you with this, check out our online Business Loan EMI Calculator, and select the tenor and EMI that suit your budget the best.

Planning your repayment in advance helps you avoid late payment fees in case you miss an EMI. Our EMI bounce charges go up to Rs. 1,500 per bounce and penal interest is levied at 3.50% each month.

You can part-pay your loan at a nominal charge of 4.72% (inclusive of applicable taxes) of the prepaid amount. This charge is not applicable if you are an individual borrower with a Flexi loan variant. If you wish to foreclose your loan at any point, you can do so at a charge of 4.72% (inclusive of applicable taxes) of the outstanding amount.

Access your loan-related documents for free at any time via the customer portal – My Account, where you can download your monthly account statement, important certificates and more. If you need physical copies of these documents, you can obtain them from the nearest Bajaj Finserv branch office for a nominal fee of Rs. 50 per document.

Factors affecting business loan interest rates in India

Several factors affect business loan interest rates in India:

• Nature of business: The nature of your business is defined by the activities that your company engages in. It is a crucial factor in determining your term loan interest rates, as it helps the lender examine whether the business is profitable or not.
• Business vintage: Businesses that have been well-established and operational for a long time are more likely to get a lower business loan interest rate. To avail of a Bajaj Finserv Business Loan, a minimum of three years of business vintage is mandatory.
• Monthly turnover: The monthly turnover reflects the financial health of your business. It helps the lender determine your repayment capacity and plays a key role in deciding your eligibility to avail of a business loan. A high monthly turnover helps in securing the most affordable current business loan interest rate in India.
• CIBIL score: Your credit or CIBIL score reflects your creditworthiness and is evaluated based on your credit behaviour. For example, a history of timely repayment of loans or credit card bills typically translates to a good credit score. The higher your credit score is, the better your chances of getting the lowest interest rates for business loans. A CIBIL Score of 685 or more is considered ideal to qualify for a Bajaj Finserv Business Loan.

Types of business loan interest rates

Bajaj Finserv offers collateral-free loans at one of the lowest business loan interest rates in India ensuring no hidden charges and 100% transparency. Generally, two types of business loan interest rates are available in the market:

Fixed rate of interest: The business loan interest rate will remain constant throughout the loan tenor. If you opt for a fixed interest rate, you can assess your fixed EMIs beforehand and plan your finances accordingly.

Floating rate of interest: Under a floating rate, small business loan interest rates are subject to revision as per the changes in the repo rate, a lending benchmark by the RBI. Any change in the repo rate will affect the applicable interest rate and the credit facility extended to borrowers. Although your EMI may remain unchanged, your loan tenor might see an extension due to the business loan interest rate adjustment as your total repayment liability increases.