Business Loan Interest Rates

• Compare current business loan interest rates online starting from 7.25% p.a.
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Below is a comparison between various business loan offers from top banks in India, according to current business loan interest rates and processing fees. This table will assist you with deciding the best and most affordable business loan available in the market right now.

There are two common types of business loan interest rates in India:

• Diminishing interest rate: This business loan's low interest rate is determined based on the principal outstanding loan amount at the end of a certain period. When calculating interest, the next calculation is based on the outstanding principal balance amount and not the starting principal amount.
• Flat interest rate: A flat rate of interest means that the interest rate remains fixed throughout the loan tenure. The interest is computed for the entire loan amount at the beginning of the loan tenure.

The following are the main factors that affect business loan interest rates:

• Nature of business: The nature of the business can be categorised into the non-priority sector and priority sector. The nature of the business impacts the interest rates on the business loan.
• Years of business existence: Business loan providers usually charge interest rates based on the existence of the business. So, the longer a business has been in existence, the higher its chances of getting lower interest rates. However, for a low interest business loan sanction, the business must have been operational at least a year.
• Turnover of business: Lenders assess the profitability of a business before sanctioning a business loan. The lender will have greater trust in the borrower’s repayment capacity if their business is more profitable. A profitable business has a good chance of getting a lower interest rate business loan.
• Credit score: Your credit score shows how well you have paid back your loans and credit card dues in the past. It also affects the interest rate of the business loan that you will get. If you have an excellent CIBIL score, you are more likely to get approved for a lower-interest-rate business loan. A credit score of 700 or above is usually considered good.
• Collateral: When you apply for a business loan, the lender may ask for collateral as security. The value of the collateral determines the business loan interest rate. Collateral can be real estate, machinery, equipment, deposits, home equity, etc. However, if you don’t have any collateral, you may apply for an unsecured business loan.
• Type of lender: Business loan interest rates of public and private sector banks are usually lower than those offered by NBFCs, Micro Finance Institutions (MFIs), small finance banks (SFBs), or other financial institutions.

Compare current business loan interest rates on MyMoneyMantra.com to get affordable business loan EMI by getting the lowest interest rates. Current business loan interest rates start from as low as  7.25%  p.a. A business loan is a financing option that can be used to start a new business or to expand an existing one. These loans are provided at the most competitive rates of interest to help businesses fund any expenses that are related to purchasing new equipment, purchase of inventory, overheads, expansion of the current premises, and so on.

There are different types of business loans that one can avail to meet the exact requirements of the business. However, getting a business loan isn’t easy as it involves a complicated process. Our business loan experts can help you with the entire process, from application to disbursal. We are partnered with more than 100 banks, NBFCs, and other financial institutions. We have all the best business loan offers at attractive interest rates that suit all your business requirements.