In summary
The commercial loan interest rate from Bajaj Finance ranges from 14% to 23% p.a. for unsecured business loans, depending on the applicant’s credit profile, business stability, loan amount, and repayment capacity.
- Loan amount: Eligible businesses can borrow up to Rs. 80 lakh without pledging collateral, subject to Bajaj Finance approval and applicable terms.
- Commercial loan rates: The applicable rate varies according to the borrower’s CIBIL score, financial records, existing obligations, and selected loan variant.
- Rate structure: Commercial financing may carry fixed or floating rates; borrowers should confirm the applicable structure in their sanction letter.
- Eligibility: Applicants generally need a CIBIL score of 650 or above and a minimum business vintage of 3 years.
- Applicant profile: Eligible applicants must be Indian citizens aged 21–80 years and meet the lender’s documentation requirements.
Use the Bajaj Finance Business Loan EMI Calculator to see how your commercial loan rate, amount, and tenure affect the monthly EMI.
What is the interest rate on commercial loans?
The commercial loan interest rate from Bajaj Finance ranges from 14% to 23% p.a. for unsecured business loans, subject to the borrower’s profile and applicable loan terms.
Commercial loan interest rates may be fixed or floating. A fixed rate remains unchanged during the agreed tenure, while a floating rate can move with the lender’s benchmark or market conditions, causing the EMI or tenure to change. Where the reducing-balance method applies, interest is charged only on the outstanding principal, lowering the interest component as the loan is repaid.
Eligible businesses can apply online for commercial loans from Bajaj Finance.
What are the factors affecting commercial loan interest rates?
The main factors affecting commercial loan interest rates are the applicant’s credit score, business vintage, loan amount, collateral availability, revenue stability, and repayment history.
Factor | How it affects the rate | Impact level | How to improve |
Credit score | A CIBIL score below 650 may reduce eligibility; a score of 750 or above may support better terms | High | Pay EMIs on time and reduce credit card balances |
Loan amount | Larger amounts require stronger repayment capacity | Medium | Borrow only what cash flow can support |
Business vintage | A minimum vintage of 3 years is generally required; longer operations indicate stability | High | Maintain consistent financial records |
Collateral | Unsecured loans generally carry higher rates than secured facilities | High | Offer acceptable security where practical |
Revenue and repayment history | Stable revenue and timely repayments reduce perceived risk | High | Avoid payment defaults and maintain healthy cash flow |
Bajaj Finance evaluates these factors when determining the applicable commercial loan rate for each eligible applicant.
How is interest calculated on a commercial loan?
Interest on a commercial loan is commonly calculated using the monthly reducing-balance method, where the commercial loan interest rate applies to the outstanding principal rather than the original amount throughout the tenure.
At a commercial loan rate of 14% p.a. on a Rs. 10 lakh loan over 36 months, the approximate EMI is Rs. 34,178. The first month’s interest is calculated as:
Rs. 10,00,000 × 14% ÷ 12 = Rs. 11,667
The remaining EMI reduces the principal. In each subsequent month, interest is charged on the lower outstanding balance, gradually reducing the interest component and increasing the principal component.
Under the flat-rate method, interest is calculated on the full original principal throughout the tenure, generally resulting in a higher total borrowing cost.
Fixed vs floating commercial loan interest rates
Commercial loan interest rates may be fixed or floating: a fixed rate remains unchanged during the agreed period, while a floating rate moves with the lender’s benchmark.
Feature | Fixed rate | Floating rate |
Rate behaviour | Remains constant | Changes with the benchmark |
EMI stability | Predictable monthly payment | EMI or tenure may change |
Best suited for | Businesses needing cash-flow certainty | Borrowers comfortable with market movements |
Risk level | Lower rate-change risk | Medium to high rate-change risk |
Typical use | Equipment or working capital finance | Commercial property or long-term expansion |
A 1 percentage-point floating-rate increase from 14% to 15%, for example can raise the EMI and total borrowing cost; actual pricing varies by lender.
Eligibility criteria for a commercial loan from Bajaj Finance
Indian citizens aged 21–80 years who have operated a business for at least 3 years and hold a CIBIL score of 650 or above may apply for a commercial loan from Bajaj Finance.
Criteria | Requirement |
Nationality | Indian citizen |
Age | 21–80 years |
Business vintage | Minimum 3 years |
CIBIL score | 650 or above |
Loan amount | Up to Rs. 80 lakh |
Meeting these requirements improves approval prospects, but the sanctioned amount and commercial loan interest rate depend on the applicant’s financial profile, repayment capacity, and verification.
Priya’s commercial loan application
Priya, a 38-year-old manufacturer in Pune with a 5-year-old business and a CIBIL score of 720, applied for a Rs. 50 lakh commercial loan from Bajaj Finance. Her stable business history and repayment record supported her assessment for a competitive commercial loan rate, subject to approval.
Fees and charges on Bajaj Finance commercial loans
Beyond the commercial loan interest rate, Bajaj Finance applies processing, repayment-default, and prepayment charges according to the selected loan variant. Applicable taxes are included where stated.
Charge type | Amount | Notes |
Processing fee | Up to 4.72% of the loan amount | Inclusive of applicable taxes |
Bounce charge | Rs. 1,500 per bounce | Applies to dishonoured instruments or unpaid instalments |
Full prepayment charge | Up to 4.72% | Applied to the outstanding amount or applicable Dropline Limit |
Part-prepayment charge | Up to 4.72% of the prepaid principal | Term Loan only; not applicable to Flexi variants |
Penal charge | 36% p.a. per overdue instalment | Charged from the due date until full payment |
Review the complete Bajaj Finance fees and charges before accepting the commercial loan offer.
How to apply for a commercial loan from Bajaj Finance
You can apply for a commercial loan from Bajaj Finance online by completing mobile OTP verification and submitting your business and financial details.
- Visit the application page: Open the Bajaj Finance commercial loan page and select “Apply”.
- Verify your mobile number: Enter your 10-digit number and submit the OTP received.
- Provide applicant details: Enter your name, PAN, date of birth, and PIN code.
- Select the loan: Choose an amount of up to Rs. 80 lakh, a loan variant, and a tenure between 12 and 96 months.
- Complete verification: Submit KYC, business proof, and requested financial documents.
- Review the offer: Accept the terms after checking the applicable rate, fees, and repayment schedule.
Check your eligible commercial loan interest rate before submitting the application.
Frequently asked questions
The commercial loan interest rate from Bajaj Finance ranges from 14% to 23% p.a. for eligible unsecured business loans. Your commercial loan rate depends on factors such as the amount requested up to Rs. 80 lakh and your credit profile. A CIBIL score of at least 650 is required to apply, while a higher score may support more favourable loan terms.
A fixed rate commercial loan keeps the interest rate and EMI constant throughout the agreed loan tenure. This commercial loan interest rate structure makes monthly repayments predictable, helping businesses plan budgets and manage cash flow. Your EMI does not change even when the RBI repo rate rises, although other applicable fees and charges remain payable according to the loan agreement.
Bajaj Finance offers eligible applicants a commercial loan of up to Rs. 80 lakh without collateral. Applicants must generally be Indian citizens aged 21–80 years, have a CIBIL score of 650 or above, and operate a business with a minimum vintage of 3 years. The rate you receive also depends on the loan amount requested, financial profile, and repayment capacity.
Your commercial loan interest rate generally improves as your CIBIL score increases; Bajaj Finance requires a minimum score of 650 to apply, while a score of 750 or above may help you qualify closer to the lower end of the available range. A higher score indicates reliable repayment behaviour, reducing the lender’s perceived risk. However, the final rate also depends on business financials, vintage, loan amount, and existing debt.
The commercial loan rate may vary with the amount requested because larger loans require closer assessment of your revenue and repayment capacity. A larger amount backed by stable cash flow and a strong credit profile may attract competitive terms. However, a smaller loan does not automatically guarantee a lower commercial loan interest rate, particularly when the applicant has weaker credit or high existing debt.
Yes, commercial loan interest rates generally differ between secured and unsecured facilities because the lender’s risk is different. Unsecured commercial loans typically attract higher interest rates because the lender bears more risk without collateral. A secured commercial loan is backed by property or another acceptable asset, which may support a lower rate. However, the final pricing also depends on creditworthiness, tenure, and repayment capacity.
You can improve your chances of securing a lower commercial loan interest rate by maintaining a CIBIL score of 750 or above, keeping existing debt low, showing stable revenue and profits, and offering collateral where suitable. To improve the commercial loan rate offered, also select an affordable loan amount and submit complete financial records. Check your Bajaj Finance offer online using your mobile number and OTP to view personalised terms.
Yes, commercial loan interest rates and personal loan rates are assessed using different risk factors. A commercial loan is evaluated primarily on business turnover, cash flow, vintage, industry risk, and repayment history. A personal loan is assessed mainly on the individual applicant’s income, employment profile, credit score, and existing obligations. The final rate for either facility also depends on the lender’s policies and loan terms.
