What is the interest rate on MSME loans?
Bajaj Finserv offers low-interest rates and nominal fees and charges on its MSME loans. This collateral-free loan comes with an attractive interest rate starting at 9.75% - 30% p.a. and a nominal processing fee of up to 3.54% of the Loan Amount (Inclusive of Applicable Taxes). Here is the list of fees and charges:
| Type of fee | Applicable charges |
| Rate of interest | 9.75% - 30% per annum |
| Processing fees | Up to 3.54% of the loan amount (inclusive of applicable taxes) |
| Bounce charges | Rs. 1,500 per bounce. “Bounce charges” shall mean charges for (i) dishonour of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate or any other reason. |
| Document processing charges | Up to Rs. 2,360/- (inclusive of applicable taxes) |
| Flexi Fee | Term Loan - Not applicable
*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
Part-prepayment –
|
| Stamp duty (as per respective state) |
Payable as per respective state |
| Platform fees | 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/ Pre-EMI 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 2 – Less than 30 days from the date of loan disbursal till the first EMI is charged: |
| Annual maintenance charges | Term Loan: Not applicable Flexi Term Loan (Flexi Dropline): Up to 0.413% (Inclusive of applicable taxes) 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) |
| Legal and incidental charges | Recovery of charges |
*Switch Fee is applicable only in case of switch of loan. In switch cases, Processing Fees and Documentation Charges will not be applicable.
MSME loan EMI calculation
EMI stands for equated monthly instalment. It is a fixed monthly payment made by the borrower towards repayment of the loan. Monthly instalments comprise the principal amount and the accrued interest.
Bajaj Finserv offers a flexible repayment tenor of up to 96 months on MSME loans to ease the process of repayment. This long tenor lets you spread out your EMIs and make the credit facility affordable. You can also use the online EMI calculator to know the exact amount of your monthly EMIs and total payable interest in just a few minutes.
How to calculate MSME loan EMI
Manual calculation of monthly instalments can be time-consuming and might give you an erroneous result. In such a situation, the Business Loan EMI Calculator can help you as it is simple to use and provides accurate results in a few minutes.
You can calculate your EMI by giving the following information:
- Principal
- Rate of interest
- Tenor
This online calculator uses the following formula:
EMI=P*r* (1+r) ^n/ [ (1+r) ^ n-1)
Here, P stands for the principal or loan amount
R stands for the rate of interest
N stands for the tenor
With this online tool, you can also try different combinations of loan amount and tenor to arrive at an EMI that fits your repayment capacity.
Frequently asked questions
The interest rate on MSME (Micro, Small, and Medium Enterprises) loans directly impacts the Equated Monthly Installment (EMI) amount paid by borrowers. A lower interest rate reduces the EMI, making the loan more affordable and reducing the overall cost of borrowing. Conversely, a higher interest rate increases the EMI, potentially straining the borrower's finances and increasing the total repayment amount. Therefore, borrowers often seek competitive interest rates when availing of MSME loans to minimize the financial burden and manage their cash flow effectively, ultimately impacting the sustainability and growth potential of their businesses.
Yes, MSME loan interest rates can vary depending on factors such as the borrower's creditworthiness, the loan amount, and prevailing market conditions.
The current MSME loan interest rate varies depending on the lender, prevailing market conditions, and the borrower's credit profile.
Factors influencing MSME loan interest rates include the borrower's creditworthiness, loan amount, loan tenure, prevailing market conditions, and the lender's policies.
