The Business Loans offered by Bajaj Finserv have different repayment options. You can apply for the loan, make sure that you fulfil the Business Loan eligibility criteria and read the Business Loan terms and conditions well. The repayment options are majorly divided into:
• Term Loan
• Line of Credit
Term Loan: When you apply for term loans, you have to repay the loan amount (principal amount + rate of interest) in equated instalments, depending on the tenor of the loan. You get the option to prepay some surplus funds apart from the EMI, but cannot withdraw. It can further be divided into short term, middle term and long term loans, depending on the number of months.
Line of Credit: In case of a Line of Credit facility, you will get a dedicated credit line for a particular period of time. Now the monthly repayments will only have the interest component and not the principal. The best part is that you only have to pay interest on the amount that you use. You can withdraw money whenever you need the same and the principal amount can be paid back when the duration ends.