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

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 Loans, 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: Interest Rate, Fees & Charges

	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.
	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.
	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 if paid from own sources. This helps you maximize your savings and focus on your business.
	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

Calculating the interest rate for a Business Loan is an important step in determining the total cost of borrowing. However, calculating the interest rate for a Business Loan can be complex, especially if you are dealing with different loan types or lenders.

The interest is calculated as per the following formula:

E = [P x R x (1+R) N] / [(1+R) (N-1)]
Where,
○ P = Principal or the loan amount
○ R = Monthly interest rate (annual interest rate/12)
○ N = Number of monthly instalments (loan tenure)

Before you come to a decision, it is important to look for and compare Business Loan interest rates and repayment terms from different lenders. Additionally, you can use Poonawalla Fincorp’s Business Loan EMI calculator to find out the best interest rate for your loan and make informed decisions about your borrowing needs.

When it comes to obtaining a Business Loan, several factors can affect the interest rate and charges associated with the loan. Check out some of the top factors that affect Business Loan interest rates:

Fixed Interest Rate

Fixed interest rates, as the name suggests, are fixed for the entirety of the loan tenure. The borrower is required to pay the same EMI amount each month. What’s more, fixed interest rates are more reliable in the long run as you can be assured that the rate will not change throughout the loan tenure. It also makes it easier for you to calculate your monthly EMI amount. So, if you are looking for the best Business Loans at low-interest rates, apply now with Poonawalla Fincorp.

Floating Interest Rate

Floating interest rates can change as per existing market conditions, which means the loan EMI amount to be paid every month can differ. Since the rate can differ according to prevalent trends, this type of interest rate can also affect your loan repayment capabilities if your business is relatively new. Nevertheless, floating interest rates can also be on the lower side and further lower your EMI amount. Hence, to find the best Business Loan offer at attractive interest rates, simply apply with Poonawalla Fincorp.

Prepayments of a Business Loan can save you lots of money in terms of loan interest to be paid. However, it is important to take note of various aspects before taking the decision to prepay your loan. Check out these tips to prepay a Business Loan effectively:

Identify the ideal time for loan repayment 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: