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What are the interest rates on SME loans?

What are the interest rates on SME loans?

2 min read

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 Finserv 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 Finserv 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 Loan to make repayment stress-free.

Here are the latest interest rates and other nominal charges applicable on the Bajaj Finserv SME Loan.

Type of fee Applicable charges
Rate of interest 14 to 25% per annum
Processing fees Up to 4.72% 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.
Flexi Facility Charge

Term Loan - Not applicable
Flexi Term Loan (Flexi Dropline) - Up to Rs. 999/- (inclusive of applicable taxes)
Flexi Variant (as applicable below) - A fee will be deducted upfront from the loan amount

  • Up to Rs. 5,999/- (inclusive of applicable taxes) for loan amount less than Rs. 10,00,000/-
  • Up to Rs. 7,999/- (inclusive of applicable taxes) for loan amount from Rs. 10,00,000/- to Rs. 14,99,999/-
  • Up to Rs. 12,999/- (inclusive of applicable taxes) for loan amount from Rs. 15,00,000/- to Rs. 24,99,999/-
  • Up to Rs. 15,999/- (inclusive of applicable taxes) for loan amount of Rs. 25,00,000/- and above


* The above Flexi facility charges 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 (as per respective state)
 Payable as per state laws and deducted upfront from loan amount
Broken Period Interest/ Pre-EMI Interest

Method of recovery of "Broken Period Interest/Pre monthly instalment Interest" would be as follows:

Scenario 1: If Loan is disbursed on 1st or post 10th of the month:

For Term Loan : BPI amount will be capitalised, i.e added to Principal amount on Due date / Deducted from disbursement

For Flexi Loans: BPI amount will be capitalised, i.e added to Principal amount on Due date / Added to first instalment

Scenario 2: If Loan is disbursed between 3rd and 10th of the month:
First instalment will consist of interest for actual number of days.
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.
Legal and incidental charges Recovery of charges
Principal Holiday Facility Fees

Principal Holiday (as applicable below) - (Inclusive of applicable taxes)

Up to Rs. 6499 (Inclusive of applicable taxes) for loan amount less than Rs. 10,00,000.
Up to Rs. 8,999 (Inclusive of applicable taxes) for loan amount between Rs. 10,00,000 and 14,99,999.
Up to Rs. 13,999 (Inclusive of applicable taxes) for loan amount between Rs. 15,00,000 and Rs. 24,99,999.
Up to Rs. 16,999 (Inclusive of applicable taxes) for loan amount Rs. 25,00,000 and above.

Note-
The above principal holiday facility fees will be deducted upfront from loan amount.
Loan amount includes approved loan amount, Insurance Premium and VAS Charges.

Additional read: Meaning of SME

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