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Business Loan Interest Rates

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Business Loan Fees and Interest Rates

Bajaj Finserv offers the lowest rate of interest on business loans. Read more about our latest interest rate and fees and charges below.

Business Loan Interest Rate in India
Type of Fees Applicable Charges
Rate of interest 17% p.a. onwards
Processing fees Up to 2% of the loan amount (plus applicable taxes)
Document/statement charges

Statement of account/ repayment schedule/foreclosure letter/no dues certificate/interest certificate/list of documents
Download your e-statements/letters/certificates at no extra cost by logging into the Customer Portal – Experia.
You can get a physical copy of your statements/letters/certificates/list of documents from any of our branches at a charge of Rs.50/- (inclusive of taxes) per statement/letter/certificate.
Bounce charges Up to Rs.3000 (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 2% per month on the Monthly Instalment/EMI outstanding, from the date of default until the receipt of Monthly Instalment/EMI.
Document processing charges Rs.2000 + applicable taxes
Stamp Duty At actuals. (as per State)

Annual/Additional 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 1.0% plus applicable taxes of the total withdrawable amount during initial tenor. 0.25% plus applicable taxes of the total withdrawable amount during subsequent tenor
Note: Annual/Additional Maintenance Charge is deducted upfront every year for the complete tenor of the loan.

Foreclosure Charges:

Loan Variant Charges
Loan (Term Loan/Advance EMI/Step-Up Structured Monthly Instalment/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-Prepayment Charges:

Borrower Type Time Period Part-Prepayment Charges
Not applicable if the borrower is an individual and the loan is availed on floating interest rate and not applicable for Flexi Term Loan/Hybrid Flexi variants as well More than 1 month from date of loan disbursal. 2% + applicable taxes on part-payment amount paid.

The following charges are applicable on secured business loans –

Type of Fees Applicable Charges
Rate of interest 16% p.a. onwards
Processing fees Up to 2% of the loan amount(Plus Applicable Taxes)
Document/statement charges

Statement of account/ repayment schedule/foreclosure letter/no dues certificate/interest certificate/list of documents
Download your e-statements/letters/certificates at no extra cost by logging into the Customer Portal – Experia.
You can get a physical copy of your statements/letters/certificates/list of documents from any of our branches at a charge of Rs.50/- (inclusive of taxes) per statement/letter/certificate.
Penal interest Any delay in payment of Monthly Instalment/EMI shall attract penal interest at the rate of 2% per month on the Monthly Instalment/EMI outstanding, from the date of default until the receipt of Monthly Instalment/EMI.
Bounce charges Rs.2,000 (inclusive of taxes)
Foreclosure charges (if any) 4% + applicable taxes
Document processing charges Rs.2,000 + applicable taxes
Property insight Rs.6,999 (inclusive of applicable taxes)
Stamp Duty At actuals. (as per State)

Annual/Additional Maintenance Charges:

Details Charges
Flexi Term Loan 0.25% of the current Flexi Term Loan amount + applicable taxes (as per the repayment schedule) on the date of levy of such charges
Flexi Hybrid Loan 0.5% of the loan amount + applicable taxes during initial tenor; 0.25% of the current Flexi Term Loan amount + applicable taxes during the subsequent tenor

Foreclosure Charges:

Loan Variant Charges
Loan (Term Loan/Advance EMI/Step-Up Structured Monthly Instalment/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-Prepayment Charges:

Borrower Type Time Period Part-Prepayment Charges
Not applicable if the borrower is an individual and the loan is availed on floating interest rate and not applicable for Flexi Term Loan/Hybrid Flexi variants More than 1 month from date of loan disbursal 2% + applicable taxes on part-payment amount paid

Mandate rejection service charge*: Rs. 450 (inclusive of applicable taxes)

*Charges will be levied if a 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 reason whatsoever.

Note: Additional cess will be applicable on all charges in the state of Kerala.

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 in examining whether the business is profitable or not.

Business Vintage: Businesses that are well-established and operational since long are more likely to get a business loan at a lower rate of interest. 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, therefore, 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 CIBIL 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. With Bajaj Finserv Business Loans, you can be assured of no hidden charges and 100% transparency.
Generally, two types of business loan interest rates are available in the market:

Fixed rate of interest: Under this business loan interest rate regime, the interest rate will remain constant throughout the loan tenor. If you opt for a fixed rate of interest, 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 on the loan and the credit facility extended to borrowers. Although your EMI may remain unchanged, your loan tenor might see an extension due to the interest rate adjustment as your total repayment liability increases.


Business loan fees & interest rates FAQs

What is the processing fee for business loans?

Bajaj Finserv charges a nominal amount of up to 2% of the principal amount as processing fees.

What is the minimum and maximum business loan tenor that can be given?

In general, the minimum and maximum business loan tenors are between 12 months and 84 months.

How to choose the ideal repayment tenor for business loans?

Consider the following factors to choose an ideal tenor and avoid chances of defaulting:
 
  • Loan amount – A shorter tenor is better for a small loan amount and vice-versa.
  • Rate of interest – If interest rates are comparatively lower, consider going for a shorter tenor. Longer repayment tenor increases the total cost of loan.
  • Financial plans – If there are large expenditures planned in the future, go for a shorter tenor and clear off your debts early.
  • Monthly liabilities – In case of high monthly expenses, a longer tenor is ideal for convenient repayment.

What are the pre-closure/foreclosure charges for business loans?

Business loan foreclosure with Bajaj Finserv attracts 4% charges on the outstanding amount. It also levies the outstanding taxes on the date of foreclosure.

If you go for part-prepayment, a 2% charge is levied along with the outstanding taxes on the amount part-prepaid.

What are the interest rates for unsecured business loans?

Bajaj Finserv offers attractive unsecured business loan interest rates to customers. Our rates start at 17% per annum, and this, combined with a long repayment tenor, makes the loan more easily repayable for you.

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