Business loan rates and charges

The following charges are applicable on unsecured business loans

Types of fees

Applicable charges

Rate of interest

17% p.a. and onwards

Processing fees

Up to 2% of the loan amount (plus applicable taxes)

Bounce charges

Up to Rs. 2,000 (Inclusive of applicable taxes)

Penal interest (applicable in case of non-payment of monthly instalment on/ before the due date)

Any delay in payment of monthly instalment/ EMI shall attract penal interest at the rate of 3% per month on the monthly instalment/ EMI outstanding, from the date of default until the receipt of monthly instalment/ EMI.

Document processing charges

Rs. 2,360 (Inclusive of applicable taxes)

Stamp Duty At actuals (as per state)
Mandate Rejection Charges Rs. 450/- (Inclusive of applicable taxes) per month from the first month of due date for mandate rejected by customer’s bank until the new mandate is registered


Annual maintenance charges

Loan variant

Charges

Flexi Term loan

0.25% plus applicable taxes of the total withdrawable amount (as per the repayment schedule) on the date of levy of such charges.

Flexi Hybrid loan

1% plus applicable taxes of the total withdrawable amount during the initial tenor.
0.25% plus applicable taxes of the total withdrawable amount during subsequent tenor.

 

Foreclosure charges

Loan variant

Charges

Loan (term loan/ advance EMI/ step-up structured monthly instalments/ step-down structured monthly instalment

4% + applicable taxes on the outstanding loan amount payable by the borrower on the date of such full pre-payment

Flexi Term loan

4% plus applicable taxes of the total withdrawable amount as per the repayment schedule, on the date of such full pre-payment

Flexi Hybrid loan

4% plus applicable taxes of the total withdrawable amount as per the repayment schedule, on the date of such full pre-payment

 

Part-payment charges

Time period

Charges

More than 1 month from the date of loan disbursal

2% plus taxes on the amount part-prepaid


Part-payment charges are not applicable if the borrower is an individual with a variant of Flexi loan. Mandate rejection service charge: Rs. 450 (Inclusive of applicable taxes)

Charges will be levied if the new mandate form is not registered within 30 days from the date of rejection of the previous mandate form by the customer’s bank for any reasons whatsoever.

Bajaj Finserv Business Loans come with attractive interest rates, starting at 17% per annum, for a sanction going up to Rs. 45 lakh. 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. 3,000 per bounce, including taxes, and penal interest is levied at 2% each month.

You can part-pay your loan at a nominal charge of 2% of the prepaid amount, plus taxes. 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% the outstanding amount, plus taxes.

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.

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Frequently asked questions

What is the processing fee for a business loan?

The processing fee for a Bajaj Finserv Business Loan can go up to 2% of the approved loan sanction.

Is there a charge applicable on part-prepayments?

You will need to pay a nominal charge of 2% plus taxes on the amount you wish to part-pay. However, this charge is not applicable if you are an individual borrower and have taken the Flexi facility on your loan.

What does EMI bounce charge mean?

An EMI bounce charge is levied when you miss a payment on your loan. The penalty for a bounced EMI on your Bajaj Finserv Business Loan can go up to Rs. 3,000 per missed EMI.

What is the interest rate for a business loan?

You can avail of a Bajaj Finserv Business Loan at an attractive rate of interest starting at 17% per annum.

What is the foreclosure charge for business loans?

On foreclosing your term business loan, you will need to pay a charge of 4% plus taxes on the outstanding principal. If you have availed of the Flexi facility on your loan, you will need to pay an amount of 4% plus cess and taxes on the outstanding principal.

What is the maximum and minimum repayment tenor?

The business loan repayment tenor ranges up to 84 months.

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