Business Loan Interest Rates

Leading financial institutions offer business loans at attractive interest rates starting from 14% p.a. on Bajaj Markets. This lets you save on the total borrowing costs, making the loan repayment more manageable. The EMIs for loans with a lower interest rate are also low, allowing you to easily accommodate these in your monthly budget. Here is everything you need to know about the interest rates levied on a business loan available on Bajaj Markets.

*Disclaimer: The rates are subject to change at the lender’s discretion.

Here are some common factors which have a major impact on your business loan interest rates:

Business Turnover

The turnover of your business determines your loan repayment capacity. Higher profits help improve your loan eligibility, incentivising the lender to offer favourable loan terms. This can include a lower interest rate as well. 

Credit Profile

The credit reports, scores, and rankings provided by TransUnion CIBIL are usually considered by loan providers when assessing your loan eligibility. Your CIBIL score and the company’s CIBIL MSME Rank signify your ability to manage and repay your credits. A personal score of 750 or more and a rank from 1 to 4 are considered ideal for getting a business loan at a lower interest rate.

Loan Type

Depending on the type of business loan you choose the interest rate may differ. The interest charged on a line of credit may be different from the rate levied on a working capital loan or a machinery loan. This is because each type of loan serves a different purpose and the rates are fixed depending on the risk associated with each of these. Thus, assess your requirements to identify a loan which suits your needs and comes with a lower interest rate.

Collateral

If you submit your property, gold, or any other valuable asset as collateral, the lender may offer a lower interest rate. This is because the collateral offsets the risk associated with the loan. In case of default, the lender can take over the asset and auction it to recover the loan amount. This security enables the lender to offer a lower interest rate. The leniency offered in the loan terms is further impacted by the type of collateral you provide. The value of the collateral and the rate at which its market value is likely to increase also play a major role in the evaluation of your loan eligibility.

Some tips for improving your loan eligibility to get a lower business loan interest rate are as follows:

• Pay your dues on time to improve your credit score and repayment history

• Regularly check your credit report and raise disputes, if any

• Apply for a lower loan amount to reduce the risk associated with the loan for the lender

• Submit your assets like property, gold, etc. as collateral

• Ensure that the company has a healthy cash flow

• Compare offers from different lenders and negotiate for better loan terms

• Check for subsidies offered under government schemes

• Refinance or transfer the balance of your existing loan

Reference of all T&C necessarily refers to the terms of the Partners as regards to pre-approved offers and loan processing time amongst other conditions.