Commercial loans are secured, or unsecured credit facilities offered to businesses. Commercial loan interest rates vary depending upon the nature of credit. Generally, the interest rate on unsecured commercial loans is slightly higher due to the risks involved in sanctioning collateral-free loans.
The interest rate on commercial loans depends on whether the lender offers fixed or floating interest rates. A fixed interest rate remains constant throughout the loan tenure, providing predictable payments. Conversely, a floating interest rate fluctuates with market conditions, potentially resulting in varying payments over time.
Bajaj Finance offers hassle-free commercial loans at an affordable interest rate to businesses that require quick finances to meet growing needs.
Frequently asked questions
A commercial loan is a type of business loan that is used for financing commercial activities, such as purchasing or renovating a property, expanding a business, buying equipment, etc. The rate of interest for commercial loan varies depending on various factors, such as the loan amount, tenure, credit score, collateral, etc.
A fixed rate commercial loan is a type of commercial loan that has a constant interest rate throughout the loan tenure. This means that the borrower pays the same amount of interest and principal every month, regardless of the market fluctuations. A fixed rate commercial loan can help the borrower to plan their budget and cash flow better, as they know the exact amount of their monthly repayments.
The maximum amount of commercial loan depends on your eligibility and creditworthiness. Bajaj Finance offers commercial loans of up to Rs. 55 lakh if you fulfil the following eligibility criteria:
- Indian citizen
- Age between 24 years to 70 years
- Business vintage of at least 3 years
- Credit Score of 685 or more