business loan interest rates

Collateral-free Business Loan
with festive offers

Attractive interest rates
starting from 15%* p.a.

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100% digital
process

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Loan Amount
Up to ₹30 Lakhs

Business Loan Interest Rate & Charges

Competitive Rates | Low Processing Costs | Zero Hidden Charges

The charges applicable on a business loan 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 competitive interest rates and loan charges. With it, you can keep costs in check, and keep your cash flow healthy all through.

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% to 26%. This is a competitive rate and business owners can access capital cost-effectively based on the financial background.
Loan Fees Logo Processing fees
The Poonawalla Fincorp Business Loan has a one-time processing fee of 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: Rs.1,000 per bounce, plus taxes.
  • Penal interest: 3% charged on the overdue amount on a monthly basis.

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.

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.

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.

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.

How can I get the best rate on a business loan?
    To get the best business loan interest rate, follow these simple tips.
  • Meet all the business loan eligibility criteria
  • Furnish all the required documentation
  • Maintain adequate annual turnover
  • Have an excellent credit score

Can I get a low rate on a Poonawalla Fincorp Business Loan?
Yes. Poonawalla Fincorp offers a competitive interest rate and you can get the loan approved at the lowest rate on offer.

Are there taxes applicable on the business loan’s fees and 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.

Interest Rate

APR ranging from 15% to 26% | One-time Processing Fee up to 2% plus taxes.

Repayment

Flexible repayment tenure from 1 year to 3 years with pre-payment charges of 5% on principal outstanding plus applicable taxes.

Example

Loan Amount Rs.10 lakh, Interest Rate: 15%, Tenure: 3 years, equates to EMI of Rs. 34,665 per month.

This rate of interest is prone to fluctuation basis our internal credit and risk policy, and as per an algorithmic multivariate score card.
*T&C Apply

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Visit the application form and fill in the details.

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Provide your KYC and Income documents.

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The application is then processed for loan verification

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That’s it! Loan is credited in your bank account.

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Cash Flows
How to manage cash flow in business?

The key to a sustainable business is its financial and cash flow management! Your working capital helps you define a realistic business growth plan, goals and grab the opportunities on your way. Whether you want to scale up the operations, expand the existing structure, purchase state-of-the-art machines and equipment, or need help in maintaining your day-to-day capital, cash flows management plays a crucial rule for all of them.

Loan Against Property
Advantages of Loan Against Property

A Loan against property is a secured loan granted when you offer your existing residential or commercial property as collateral. These loans are sanctioned by housing finance companies and banks, usually at a lower rate of interest than other traditional forms of loans.

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