What is the interest rate on MSME loans?

2 min read

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:

Types of Fees

Applicable Charges

Rate of interest

9.75% - 30% p.a.

Processing fees

Up to 3.54% of the Loan Amount (Inclusive of Applicable Taxes)

Document charges/ statement charges

Statement of account/ repayment schedule/ foreclosure letter/ No Objection Certificate/ interest certificate/ list of documents

Download your e-statements/ letters/ certificates at no extra cost by logging into Customer Portal – My Account.

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

Rs. 1,500

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

3.5% Per Month

Document processing charges

Rs. 2,360 (Inclusive of applicable taxes)

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 MSME 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.

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