business loan interest rates

Business Loan Interest Rate & Charges

Loan up to 50 Lakhs | Attractive Interest Rate

Enough money is required for businesses to support start-up costs or expand. As a result, businesses seek out Business Loans to obtain the funds they want. A Business Loan is a debt that the company must return according to the terms and conditions of the loan. A Business Loan is a sum of money obtained by a company to cover expenses that it is unable to cover on its own. Some entrepreneurs utilise Business Loans to pay for salary and wages while their new firm is getting off the ground, while others use borrowed funds for office supplies, inventory, or business projects. Lenders want to know how the company plans to spend the borrowed funds, so business owners should make sure they have a detailed plan in place. It's critical to impress lenders by appearing professional, or the loan application may be denied. Businesses can pick from a range of loan choices. Traditional bank loans are the most common form of capital, however, obtaining a bank loan is not straightforward. Due to economic downturns, banks tighten their lending standards, making it more difficult for enterprises to obtain financial help from commercial loans.When times are good, they offer better terms and easier access. Getting low unsecured Business Loan interest rates can be easily handled with Poonawalla Fincorp. The low MSME loan interest rate helps the businesses to grow be they small, micro or major. The term loan interest rates offered at Poonawalla Fincorp are among the best ones in the industry.

The charges applicable on a Business Loan are some of the most important factors to consider when borrowing. Paying high fees or a high rate of interest increases your debt. The Poonawalla Fincorp Business Loan helps avoid such a problem by offering the best Business Loan interest rates and charges. With it, you can keep costs in check, and keep your cash flow healthy all through. We also provide low unsecured Business Loan interest rates to our customers. The term loan interest rates offered at Poonawalla Fincorp are among the best in the industry.

Poonawalla Fincorp Business Loan: Fees & Charges

Interest Rate Logo Interest rate
Keep loan payments affordable and within budget by availing the Poonawalla Fincorp Business Loan. Depending on factors like your credit score and financial standing, you can get an interest rate that ranges between 15% and 28%. This is a low MSME loan rate and business owners can access capital cost effectively based on their financial background. At Poonawalla Fincorp we believe in providing the best Business Loan interest rate in India. Our unique selling point is our unsecured Business Loan interest rates.
Loan Fees Logo Processing fees
The Poonawalla Fincorp Business Loan has a one-time processing fee starting from 2%. This is applicable on the disbursement and is charged as an administrative fee for handling loan processing.
Payment Logo Pre-payment charges
Prepaying a Business Loan is a smart way to save on interest and keep costs low. With our loan, you can prepay whenever it is possible, and are only required to pay a minimal fee. This amount is 5% of the outstanding principal, plus additional taxes applicable.
Late Replayment Logo Late payment penalties
Defaulting on loan EMIs attracts a penalty, which is split into two main components:
  • Bounce charge: ₹1,000 per bounce, plus taxes.
  • Penal interest: 3% charged on the overdue amount every month.

Committing to pre-paying a Business Loan before its tenure is a smart idea. Prepayments can save the business a lot of money, especially if done optimally. However, prepaying without proper planning can cause cash flow problems, which can affect business. To avoid such pitfalls, take a look at these tips to prepay a Business Loan.

  • Project cash flow needs to identify the ideal time to prepay the loan.
  • Avoid prepayments during the leaner months in the business cycle.
  • Refer to the amortisation schedule before prepaying.
  • Check for any prepayment penalties applicable.

The legal procedure through which a lender attempts to recoup the amount owing on a defaulted debt by seizing and selling the mortgaged property is known as foreclosure. The default usually occurs when a borrower fails to make a certain number of monthly payments, but it can also occur if the borrower fails to meet other requirements of the mortgage agreement. When a firm, particularly a bank, forecloses, it takes back property that was purchased with borrowed funds and is not being repaid as agreed. Clearing business liabilities is necessary to maintain healthy working capital reserves. However, this isn’t always a smart decision, and business owners should know the advantages and disadvantages of such undertakings. Here is a table for easy reference. We provide low rate Business Loans which are lower than the current Business Loan interest rates. This helps our customers in making wise decisions.

Pros Cons
Saves on interest Exerts a strain on cash flow
Reduces current liabilities Attracts a foreclosure charge

Do I have to pay a fee to apply for a Business Loan?
No. Applicants aren’t required to pay when applying for the loan. Processing fees & charges are only applicable if the loan is approved and disbursed. There are no fees that you need to pay to the MSME loan interest rate because the loan interest rates offered at Poonawalla Fincorp are the best Business Loan lowest interest rates.

What is loan foreclosure?
This is an undertaking when borrowers repay the entire debt in a single payment, before the end of the tenure. As a business owner, foreclosing the loan can be a smart option when you have the capital to do so. It helps you save on interest payments and become debt-free faster.

What is the Business Loan maximum tenure?
The Business loan maximum tenure is 3 years. Hence, you are provided with the flexibility to pay your loan according to your business’s cash flow.

How can I get an attractive Business loan interest rate in India?
    Getting a competitive Business loan interest rate in India is not an easy task but it can be simplified if a person uses their mind and fulfils the eligibility criteria for getting the Business Loan. The criteria are given below:
  • Age must be between 22 and 65 years at loan maturity
  • Applicant must have a business vintage of at least two years
  • Business must have a minimum annual turnover of ₹9 lakhs.
  • Have an excellent credit score preferably above 700 or 750

Can I get a low rate on a Poonawalla Fincorp Business Loan?
Yes. Poonawalla Fincorp offers a competitive Business Loan interest rate in India and you can get the loan approved at the lowest rate on offer. We provide the best MSME loan interest rate so our customers don’t have to worry much about paying large amounts.

Are there taxes applicable on the Business Loan’s charges?
Yes. You will have to pay an additional amount in taxes when paying the processing fee, making prepayments or when you pay the penalty for defaulting on EMIs.

Do I have to pay a fee for prepaying a Business Loan?
Yes. Prepaying the Poonawalla Fincorp Business Loan can be done at a minimal fee. You only need to pay 5% of the outstanding principal, plus taxes.

What factors lenders consider for calculating the Business Loan interest rate in India?
Lenders mainly consider some common factors such as borrower’s age, credit score, income, residence location, outstanding liabilities, etc. for calculating the Business Loan interest rate in India.

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