Business Loan Interest Rates
Various financial institutions offer business loans at low-interest rates. Business loan interest rates offered by Banks or NBFCs start at 16% p.a. for loan amounts up to Rs. 2 crores, and with a maximum repayment tenure of up to 5 years (It can be extended as per the business requirements). Apply For A Business Loan on CreditMantri and get affordable business loan interest rates. You can compare from a pool of lenders and choose the one offering the best rate of interest.
What Are The Two Types of Business Loan Interest Rates?
There are 2 types of interest rates for business loans
a) Diminishing Rate of interest – The interest rate is determined based on the amount of principal outstanding at the end of a certain period. When computing interest, the next computation is based on the outstanding principal balance and not the starting principal amount.
b) Flat Rate of interest – A Flat Interest Rate means that the interest rate stays fixed through the loan tenure. The interest here is computed for the whole loan amount at the start of the loan tenure.
FAQs Of Business Loan Interest
1. How to calculate Interest/EMI on a business loan?
Once your loan specifics are finalized, there are loan EMI calculators available online which can be used to know your Interest and Principal breakdown each month and also keep track of the amount paid and the amount pending which can be useful when planning to repay the loan.
2. Can I get a 50 lakhs loan for business?
A business loan is called unsecured financing, and you can get one without providing any collateral. You can get a 50 lakhs loan for business by applying on CreditMantri and fulfilling all the required eligibility criteria. You can compare between lenders and choose the one most suitable for you.
3. What are the fees for early loan repayment on business loans?
Early loan repayment charges vary across banks. There may be multiple restrictions based on the bank from which a customer borrows. But, usually the rate of interest lies between 4% and 5% of the outstanding loan amount.
4. Are business loan interest rates negotiable?
Yes, business loan interest rates are negotiable. If the current interest rate on your loan is high, then you must consider lowering the rate by negotiating with the lender. Lenders may negotiate based on your repayment history.
5. Is it possible to secure a lower interest rate by refinancing my business loan?
Yes, you can refinance your current business loan to get a lower interest rate and also flexible repayment terms and conditions.
6 . Is there a penalty for prepaying a business loan to lower interest costs?
There is a penalty for prepayment of a loan depending on the lender. Some lenders impose penalties while others provide the flexibility to prepay without any charges.
