What is the interest rate on MSME loans?
Bajaj Finserv offers low-interest rates and nominal fees and charges on its MSME loans. This collateral-free loan comes with an attractive interest rate starting at 14% - 30% p.a. and a nominal processing fee of up to 3.54% of the Loan Amount (Inclusive of Applicable Taxes). Here is the list of fees and charges:
| Type of fee | Applicable charges |
| Rate of interest | 14% - 30% per annum |
| Processing fees | Up to 3.54% of the loan amount (inclusive of applicable taxes) |
| Bounce charge | In case of default of repayment instrument, Rs. 1,500/- per bounce will be levied. |
| Document processing charges | Up to Rs. 2,360/- (inclusive of applicable taxes) |
| Flexi Fee | Term Loan - Not applicable
*Loan Amount includes approved loan amount, insurance premium, VAS charges, and documentation charges. |
| Penal interest | Delay in payment of Monthly instalment shall attract penal interest at the rate of 3.50% per month on the Monthly Instalment outstanding, from the respective due date until the date of receipt of Monthly Instalment. |
| Pre-payment charges | Full Pre-payment
Part Pre-payment
|
| Stamp duty | Payable as per state laws and deducted upfront from the loan amount. |
| Mandate rejection charges | Rs. 450/- per month from the first month of due date for mandate rejected by customer's bank until the new mandate is registered |
| Broken Period Interest/ Pre-EMI Interest | Broken period interest/ pre-EMI interest shall mean the amount of interest on Loan for the number of day(s) which is(are) charged in two scenarios:
Scenario 2 – Less than 30 days from the date of loan disbursal till the first EMI is charged: |
| Annual maintenance charges | Term Loan – Not Applicable Flexi Term Loan (Flexi Dropline): Up to 0.413% (inclusive of applicable taxes) of the total withdrawable amount (as per the repayment schedule) on the date of levy of such charges. Flexi Hybrid Loan: Up to 1.18% (inclusive of applicable taxes) of the total withdrawable amount during initial tenure. Up to 0.295% (inclusive of applicable taxes) of total withdrawable Amount during subsequent tenure. |
| Switch Fees* | Up to 1.18% of the loan amount (inclusive of applicable taxes) |
*Switch Fee is applicable only in case of switch of loan. In switch cases, Processing Fees and Documentation Charges will not be applicable.
MSME loan EMI calculation
EMI stands for equated monthly instalment. It is a fixed monthly payment made by the borrower towards repayment of the loan. Monthly instalments comprise the principal amount and the accrued interest.
Bajaj Finserv offers a flexible repayment tenor of up to 96 months on MSME loans to ease the process of repayment. This long tenor lets you spread out your EMIs and make the credit facility affordable. You can also use the online EMI calculator to know the exact amount of your monthly EMIs and total payable interest in just a few minutes.
How to calculate MSME loan EMI
Manual calculation of monthly instalments can be time-consuming and might give you an erroneous result. In such a situation, the MSME loan EMI calculator can help you as it is simple to use and provides accurate results in a few minutes.
You can calculate your EMI by giving the following information:
- Principal
- Rate of interest
- Tenor
This online calculator uses the following formula:
EMI=P*r* (1+r) ^n/ [ (1+r) ^ n-1)
Here, P stands for the principal or loan amount
R stands for the rate of interest
N stands for the tenor
With this online tool, you can also try different combinations of loan amount and tenor to arrive at an EMI that fits your repayment capacity.
