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
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.
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.
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 payment penalties
Defaulting on loan EMIs attracts a penalty, which is split into two main components:
Tips To Prepay A Business Loan
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.
Pros and Cons Of Foreclosing A Business Loan
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.
|Saves on interest||Exerts a strain on cash flow|
|Reduces current liabilities||Attracts a foreclosure charge|
Frequently Asked Questions
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.
- 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.