business loan interest rates

Business Loan Interest Rates & Charges @ 15%* p.a.

Loan up to 50 Lakhs | Attractive Interest Rate

All business requires sufficient capital to support operating costs and/or expand. As a result, business owners seek out Business Loans to obtain the funds they want. Businesses can pick a Business Loan from a range of loan provider choices. Traditional bank loans are the most common form of capital, however, obtaining a bank loan is not a straightforward process.

At Poonawalla Fincorp, we have an easy and simplified process and offer competitive interest rates on an unsecured Business Loan, irrespective of business size. Our term loan interest rates are among the best in the industry.

The interest rates & charges applicable on a Business Loan are one of the most important factors to look out for when borrowing. Paying 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.

Poonawalla Fincorp Business Loan: Fees & Charges

Interest Rate Logo Interest rate
Keep loan repayments affordable and within budget by getting the Poonawalla Fincorp Business Loan. Depending on factors like your credit score, financial standing, experience etc. You can receive an interest rate as low as 15%* p.a., enabling business owners to access additional capital cost-effectively.
Loan Fees Logo Processing fees
The Poonawalla Fincorp Business Loan has a one-time nominal processing fee up to 3% plus applicable taxes. This applies to the disbursement amount and is charged as an administrative fee for handling loan processing.
Payment Logo Pre-payment charges
Pre-paying a Business Loan is a smart way to save on payment of additional interest, thereby keeping the overall costs low. With Poonawalla Fincorp’s Business Loan, you can prepay at your convenience and are not required to pay any fee for the same. This is because we levy zero prepayment charges on our Business Loan. This helps you maximize your savings and focus on your business.
Late Replayment Logo Late payment penalties

Defaulting on loan EMIs attracts a penalty and penalty charges are mentioned below:

  • Penal interest: 3% charged on the defaulted EMI amount every month

Also, in case of cheque bounce there will be a charge ₹1,000 per bounce, plus taxes as applicable

Business Loan Interest Rates 15% p.a onwards
Loan Amount ₹1 Lakh to ₹50 Lakhs
Loan Processing Fees Up to 3% plus applicable taxes
Lowest EMI per month Starting from ₹3,467* per Lakh for 36 months
Loan Tenure 6 - 36 months
Prepayment/Foreclosure Charges Zero*
Late Payment Charges 3% per month
Cheque Bounce Charges ₹1000 per bounce plus applicable taxes
Stamp Duty At actuals (as per state)
No Other Hidden Charges

Committing to pre-paying a Business Loan before its tenure ends is a smart idea. Prepayments of a business loan can save the business a lot of money in terms of loan interest to be paid, especially if done optimally. However, prepaying without proper planning may cause a cash crunch, which can affect business adversely. To avoid such pitfalls, take a look at these tips to prepay a Business Loan:

  • Identify the ideal time to prepay the loan through projected cash flow calculation.
  • Avoid prepayments during the leaner months in the business cycle.
  • Refer to the amortization schedule before prepaying.
  • Check for any prepayment penalties which are applicable.

Foreclosure refers to the prepayment of the loan amount before the end of loan tenure. However, foreclosure isn’t always a smart decision, and business owners should know the advantages and disadvantages of such decisions.

Below is a table on Pros and Cons of foreclosing a loan 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 Business Loan. Processing fees & charges are only applicable once the loan is approved and disbursed.

What is loan foreclosure?

This is an undertaking when borrowers prepay 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.

What is the Business Loan’s maximum tenure?

The Business Loan’s maximum tenure is three years at Poonawalla Fincorp. 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 fulfils the eligibility criteria for getting the Business Loan. The criteria have been specified below:

  • Age must be between 24 and 65 years (during loan maturity)
  • Applicant must have a business vintage of at least two years
  • Business must have a minimum annual turnover of ₹6 Lakh
  • Have an excellent credit score

Any additional criteria, if any, can be applied at the discretion of Poonawalla Fincorp during loan processing.

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 of interest as per the terms and conditions in Poonawalla Fincorp’s internal policy.

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 applicable taxes.

What factors do lenders consider for calculating the Business Loan interest rate in India?

Lenders mainly consider some common factors, such as borrower’s age, credit score, business revenue, residential location, outstanding liabilities, etc. for calculating the Business Loan interest rate in India.

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