What are the interest rates on SME loans?
SME loans help small and medium enterprises meet their business needs, and their interest rate depends on how well you meet the lender’s eligibility criteria. Bajaj Finance has simple eligibility parameters so SMEs can qualify for a business loan with ease. This makes repayment more affordable through the tenor.
Aiding repayment, our other facilities like part-prepayments and foreclosure are also available at nominal charges. Part-prepayment allows you to use surplus funds to prepay the loan over and above your regular EMIs. This reduces the principal and allows you to decrease your subsequent EMIs or loan tenor. We offer this facility with a fee of up to 4.72% of the loan amount (Inclusive of applicable taxes) plus taxes on the amount part-prepaid. However, if you’re an individual borrower who has opted for the Flexi facility on the Bajaj Finance SME Loan, you needn’t pay any part-payment charges.
Foreclosure or full prepayment allows you to repay your entire loan amount and interest in one go. This helps you save on interest payment over the tenor of the loan. We offer this facility with a fee of up to 4.72% (inclusive of applicable taxes) plus taxes on the outstanding loan amount on the foreclosure date. The same rate is also applicable on Flexi Term Loan and Flexi Hybrid Term Loan to make repayment stress-free.
Here are the latest interest rates and other nominal charges applicable on the Bajaj Finance SME Loan.
| Type of fee | Applicable charges |
| Rate of interest | 14% to 23.50% per annum For Emergency Credit Line Guarantee Scheme (ECLGS) 5.0: 8% p.a. to 13% p.a. |
| Processing fees | Up to 4.72% of the loan amount (inclusive of applicable taxes) |
| Bounce charges | Rs. 1500/- 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. |
| Flexi Facility Charge | Term Loan – Not applicable Flexi Loan – Up to Rs 999/- to Rs 16,999/- (Inclusive of applicable taxes) will be deducted upfront from loan amount. |
| Penal Charge | Delay in payment of instalment(s) shall attract Penal Charge at the rate of 36% per annum 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 Pre-Payment. |
| Stamp duty (as per respective state) | Payable as per state laws and deducted upfront from loan amount |
| Annual maintenance charges | Term Loan: Not applicable |
Credit Guarantee Scheme Fee | Credit Guarantee Fund for Micro Units (CGFMU): Credit Guarantee Scheme fee - Up to 1.18% p.a. (pro rated daily till 31st March) (inclusive of all applicable taxes) of loan amount. |
Credit Guarantee Scheme Renewal Fee | Credit Guarantee Fund for Micro Units (CGFMU): |
Note: For loans under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, only Stamp Duty charge is applicable.
How to apply for an SME loan
You can apply online in 5 steps, including checking the SME loan interest rate Bajaj Finance may offer based on your profile.
- Visit the application page: Open the Bajaj Finance website and navigate to Business Loan
- Verify your mobile number: Enter your mobile number and complete OTP verification.
- Enter business details: Provide your business type, vintage and annual turnover.
- Choose loan details: Enter the required amount, up to Rs. 80 lakh, and preferred tenure.
- Submit documents: Upload the required documents digitally and await approval. Funds may be disbursed within 48 hours, subject to eligibility and verification.
To begin, visit Bajaj Finance, enter your mobile number and complete OTP verification to apply online.
Frequently asked questions
The SME loan interest rate from Bajaj Finance ranges from 14%–23.50% p.a., with eligible borrowers able to access up to Rs. 80 lakh. The applicable rate depends on factors such as credit profile, business details and loan terms.
The lowest interest rate SME business loan depends on the lender, borrower profile and loan terms. Public sector banks may offer lower rates linked to MCLR, while NBFCs such as Bajaj Finance offer competitive SME loan interest rates starting from 14% p.a., along with faster processing. Compare the applicable rate, fees, tenure and eligibility before choosing a lender.
