Business Loan Interest Rate and Charges

Read the fees and charges in detail before applying for our business loan.

Applicable fees and charges

Type of fee Applicable charges
Rate of interest 9.75% to 30% per annum
Processing fees Up to 3.54% of the loan amount (inclusive of applicable taxes)

Bounce charges In case of default of repayment instrument, Rs. 1,500 per bounce will be levied.
Document processing charges Rs. 2,360 (inclusive of applicable taxes)
Flexi Fee Term Loan - Not applicable
Flexi Term Loan (Flexi Dropline) - Rs. 999/- (inclusive of applicable taxes)
Flexi Hybrid Loan (as applicable below) -

• Up to Rs. 6,499/- (inclusive of applicable taxes) for loan amount less than Rs. 1000000/-.
• Up to Rs. 8,999/- (inclusive of applicable taxes) for loan amount from Rs. 1000000/- to Rs. 1499999/-.
• Up to Rs. 13,999/- (inclusive of applicable taxes) for loan amount from Rs. 15,00,000/- to Rs. 24,99,999/-
• Up to Rs. 16,999/- (inclusive of applicable taxes) for loan amount of Rs. 25,00,000/- and above.

*The Flexi charges above will be deducted upfront from the loan amount
*Loan amount includes approved loan amount, insurance premium, VAS charges, and documentation charges.
Penal charge Delay in payment of instalment(s) shall attract Penal Charge of Rs. 40 per day per instalment from the respective due date until the date of receipt of the full instalment(s) amount.
Prepayment charges

Full Pre-payment

Term Loan: Up to 4.72% (inclusive of applicable taxes) on the outstanding loan amount as on the date of full prepayment.

Flexi Term Loan (Flexi Dropline): Up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment.

Flexi Hybrid Loan: Up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment.

Part-prepayment

Up to 4.72% (inclusive of applicable taxes) of the principal amount of loan prepaid on the date of such part-prepayment.

Not applicable for Flexi Term Loan (Flexi Dropline) and Hybrid Flexi.

Stamp duty Payable as per respective state
Instalment default charges Rs. 450 per month from the first instalment due date for mandates rejected by customers bank until the new mandate is registered.
Cash collection handling charges Rs. 177 (inclusive of applicable taxes) will be charged if customer opts to make payment in cash when the collection is done by the collection agents. This fee is charged only once per month, regardless of the number of payments made against multiple LANs.
Cash deposit charges Customers will incur a cash deposition charge of Rs. 50 (Inclusive of Applicable taxes) when making cash payments at our branch offices.
PG facility charges Rs. 11 (Inclusive of Applicable taxes) will be charged for utilizing the payment gateway to make part or full payments towards the loan through digital properties.
Broken period interest Broken period interest/ pre-EMI interest shall mean the amount of interest on Loan for the number of day(s) which is(are) charged in two scenarios:

Scenario 1 – More than 30 days from the date of loan disbursal till the first EMI is charged:
In this scenario, broken period interest is recovered by the following methods:
For Term Loan: Deducted from the loan disbursement
For Flexi Term Loan: Added to the first instalment
For Flexi Hybrid Loan: Added to the first instalment

Scenario 2 – Less than 30 days from the date of loan disbursal till the first EMI is charged:
In this scenario, interest is charged only for the actual number of days since the loan was disbursed.
Annual maintenance charges

Term Loan: Not applicable

Flexi Term Loan (Flexi Dropline): Up to 0.413% (Inclusive of applicable taxes) of the total withdrawable amount
(as per the repayment schedule) on the date of levy of such charges.

Flexi Hybrid Loan: Up to 1.18% (Inclusive of applicable taxes) of the Total Withdrawable Amount during Initial loan tenure. Up to 0.413% (Inclusive of applicable taxes) of the Total Withdrawable Amount during Subsequent loan tenure.

Switch fees Up to 1.18% of the loan amount (inclusive of applicable taxes)

(Switch fee is applicable only in case of switch of loan. In switch cases, processing fees and documentation charges will not be applicable)

What is a Business Loan Interest rate?

The interest rate on a business loan represents the percentage of the loan amount that the lender imposes as a fee for providing funds to a borrower. Typically presented as an annual percentage rate (APR), this rate fluctuates based on factors such as the loan type, amount, duration, and intended use.

Factors that affect Business Loan Interest rates

  • Credit score: A higher credit score indicates a lower risk of default and hence, a lower interest rate.
  • Business profile: A well-established business with a stable income, a positive cash flow, and a good reputation can negotiate a lower interest rate.
  • Loan amount and tenure: A higher loan amount and a longer tenure can increase the interest rate as the lender faces more uncertainty and risk.
  • Market conditions: The prevailing economic conditions, inflation, and demand and supply of credit can influence the interest rate.

Tips to availing Business Loans at the lowest Interest rates

  • Compare the 3 loan variants offered by Bajaj Finance: Term Loan, Flexi Term loan, and Flexi Hybrid loan.
  • Maintain a high credit score by paying your bills and EMIs on time and avoiding defaults and late payments.
  • Opt for a shorter tenure and a lower loan amount if possible. This can reduce the interest rate and the overall cost of borrowing.
  • Provide collateral or a guarantor if required, as they can lower the risk for the lender and hence, the interest rate.

How to apply for a business loan

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Step-by-step guide to applying for a business loan

  1. Click on the ‘APPLY' button on this page.
  2. Enter your 10-digit mobile number and OTP.
  3. Fill in the application form with your basic details, such as your full name, PAN, date of birth, and PIN code.
  4. Once you enter all your details, please click on ‘PROCEED’ to visit the loan selection page.
  5. Enter the loan amount that you need. Choose from our three business loan variants – Term, Flexi Term, and Flexi Hybrid. 
  6. Choose the repayment tenure – you can select tenure options of 12 months to 96 months and click on ‘PROCEED’. 
  7. Complete your KYC and submit your business loan application.

Our representative will guide you on the next steps. The loan amount will be transferred to your bank account upon verification of your documents.

Frequently asked questions

What is the processing fee for a business loan?

The processing fee for a Bajaj Finserv Business Loan may go up to 3.54% of the loan amount, inclusive of applicable taxes.

Is there a charge applicable on part-prepayments?

Up to 4.72% (inclusive of applicable taxes) on the part-prepayment amount will be charged in case of a term loan. However, there are no part-prepayment charges if you opt for the Flexi Term Loan or Flexi Hybrid Loan.

What does bounce charge mean?

Bounce charge is the fee incurred in case of a missed EMI payment. Bajaj Finserv charges Rs. 1,500 per bounce, for every EMI missed.

What is the interest rate for a business loan?

You can get a Bajaj Finserv Business Loan at a competitive interest rate between 9.75% to 30% p.a.

What is the foreclosure charge for a business loan?

The foreclosure charge that you pay depends on the loan variant you choose. It is:

  • Term Loan: Up to 4.72% (inclusive of applicable taxes) on the outstanding loan amount as on the date of full prepayment.
  • Flexi Term Loan (Flexi Dropline): Up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment.
  • Flexi Hybrid Loan: Up to 4.72% (inclusive of applicable taxes) of the total withdrawable amount as per the repayment schedule as on the date of full prepayment.
What is the maximum and minimum repayment tenure for a business loan?

You can get a repayment tenure ranging from 1 year to 8 years.

Is there any need to provide collateral or security to get a business loan?

No, you do not need any collateral to get a Bajaj Finserv Business Loan.

What is the minimum CIBIL score requirement for getting business loan from Bajaj Finance?

You need a minimum credit score of 685 in order to get a business loan from us.

How can I calculate my business loan interest?

Use our free business loan EMI calculator to figure out how much interest you will have to pay on your loan. To see the interest charged, simply move the sliders to your preferred loan amount and tenure.

What are the factors that affect my business loan interest rate?

Your interest rate depends on how well you meet the eligibility criteria for the loan. Typically, it reflects the following factors:

  • Your CIBIL Score
  • Your business’s financials
  • How long your business has been active
How can I get a business loan at a low interest rate?

Ensure that you meet all the eligibility criteria in order to get the best deal on your business loan. The more profitable and longer-running your business, the lower your rate of interest. You must also ensure that your business has a minimum CIBIL Score of 685. The higher your CIBIL Score, the better your chances of securing a low-interest business loan.

How much loan can I get for business?

With Bajaj Finserv Business Loan you can get a loan of up to Rs. 75 lakh. Your loan amount will depend on various factors like age, business turnover, Credit Score and more.

Which is better - business loan or personal loan?

Choosing between a business and personal loan depends on your situation. Business loans are ideal for funding business-related expenses, while personal loans provide flexibility but may not offer the same tailored features for business needs.

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