Aye Finance Business Loan

Aye Finance Business Loan Highlights
Interest Rates	For SwitchPe Business Loans: 0.08% per day from day 15 onwards
Loan Amount	For hypothecation loan: Up to Rs 2 lakh For quasi mortgage loan: Up to Rs 5 lakh For mortgage loan: Up to Rs 10 lakh
Loan Tenure	For hypothecation loan: 6 months to 2 years For quasi mortgage loan: 6 months to 4 years For mortgage loan: 5 to 10 years
Processing Fees	2.5% plus GST

Note: Interest rates as of 15th April 2024

Aye Finance Business Loan Interest Rates

The interest rates for SwitchPe business loans (backed by Aye Finance) is 0.08% per day (from day 15 onwards of the loan). However, Aye Finance has not disclosed the interest rates for its other business loan schemes. Lenders usually set the business loan interest rates for their application on the basis of multiple factors including the business unit’s credit score/rating and other aspects of their credit profile, past repayment track record, nature and value of their primary/collateral security, etc.

Comparison of Business Loan Interest Rates offered by Top Banks/NBFCs

Bank/NBFCs	Interest Rate
Axis Bank	10.75% p.a. onwards
Flexiloans	1% per month onwards
HDB Financial Services Ltd.	8% - 26% p.a.
HDFC Bank	10.75% - 25% p.a.
IDFC First Bank	10.50% p.a. onwards
Indifi	1.50% per month onwards
Kotak Mahindra Bank	16% - 26% p.a.
Lendingkart	12% - 27% p.a.
Mcapital	2% per month onwards
NeoGrowth Finance	15% - 40% p.a.
Tata Capital	12% p.a. onwards
UGRO Capital	9% - 36% p.a.
Bajaj Finserv	10% to 26%

Fees and Charges for Aye Finance Business Loans

The fees and charges for the different business Loans from Aye Finance are mentioned below:

Processing fees

Particulars	Fees and charges
Processing fees	2.5% plus GST

Prepayment fees

Particulars	Fees and charges
Foreclosure charges	As applicable

Other fees and charges

Particulars	Fees and charges
Late payment charges	Rs 200 per month (inclusive of taxes)
Bounce charges	Rs 500 (inclusive of taxes)

SwitchPe Business Loans

Particulars	Fees and charges
Foreclosure charges	Nil
Convenience charges	Rs 100 from the second year
Limit enhancement charge	Rs 50
Bounce charge	Rs 300
Late Payment Charges	Rs 10 per day
Cash Collection charges	Rs 100

Types of Business Loans provided by Aye Finance

Aye Finance Hypothecation Loan

Purpose: Aye Finance Hypothecation Loan enables loan applicants to repay existing debts at lower interest rates, pay their workers, purchase inventory, renovate their business premise or service other short-term business needs.

Loan amount: Up to Rs 2 lakh

Loan tenure: 6 months to 2 years

Collateral: Hypothecation of machinery, stocks, book debts and working assets of the business

Aye Finance Mortgage Loan

Purpose: Aye Finance Mortgage Loan enables business owners to purchase livestock or machinery, pay their debts, provide wages/salaries to their workers, renovate their business premise or to fulfil other business needs.

Loan amount: Up to Rs 10 lakh

Loan tenure: 5-10 years

Collateral: Business owner’s property

Aye Finance Quasi Mortgage Loan

Purpose: Aye Finance Quasi Mortgage Loan enables business units to fulfil their working capital needs and asset purchase requirements. This business loan scheme is suited for applicants willing to mortgage their property but their property title is not perfect for creating a charge.

Loan amount: Up to Rs 5 lakh

Loan tenure: 6 months to 4 years

Collateral: Business owner’s property

SwitchPe Business Loans (backed by Aye Finance)

Purpose: Apart from the business loans schemes mentioned above, Aye Finance also offers  credit lines for MSMEs through SwitchPe, its digital lending platform. SwitchPe provides unsecured credit lines to shop owners and connects them to suppliers with no joining fees and 14 days of free credit.

Interest Rates: 0.08% per day from day 15 onwards

Aye Finance Business Loan Eligibility Criteria

The business loan eligibility criteria set by Aye Finance for its loan applicants are as follows:

Aye Finance Hypothecation Loan

• Indian citizen
• Age: 21 to 59 years.
• Business stability at least 3 years
• Minimum 3 years of permanence of the business location

Aye Finance Quasi Mortgage Loan

• Indian citizen
• Age: 21 to 59 years.
• Business stability at least 3 years
• Minimum 3 years of permanence of the business location

Aye Finance Mortgage Loan

• Indian citizen
• Age: 18 to 59 years.
• Business stability at least 3 years
• Minimum 3 years of permanence of the business location

Documents required for Aye Finance Business Loan

The documents required for availing different types of Aye Finance Business Loan schemes are mentioned below:

ID Proof (any one)

• Aadhar card (UID) (mandatory)
• Ration card with Photo
• Voter ID
• PAN card
• Passport
• Driving licence
• Bank passbook with photograph
• Company ID Card

 Address proof for current residence (any one)

• Sale deed or registration certificate
• Utility bills: Electricity bill (up to 6 months old), water bill or gas bill
• Rental or lease agreement
• Residence proof issued by local authorities (Gram Panchayat or Municipal Corporation)
• Ration card with Photo
• Voter ID
• Passport
• Aadhar
• Driving licence
• Letter from employer (for govt. employees)
• Bank passbook with Photo
• Letter from gram panchayat pradhan or municipal/zila parishad counsellor

Ownership Proof (any one)

• Sale deed and other property documents
• Electricity bill/ water bill/house tax receipt
• Letter from gram panchayat pradhan or municipal/zila parishad counsellor

Age Proof (any one)

• Ration card
• Voter ID
• Passport
• School leaving certificate (SSLC certificate)
• PAN card
• Aadhar Card (UID)

Additional Documents

• Bank statement or updated passbook showing transactions of last 6 months.
• Either the borrower or co-borrower(s) should submit bank statements or passbook(s) of all their accounts.

For SwitchPe Business Loans (Backed by Aye Finance)

• PAN card or Voter ID
• Shop Establishment Certificate or Electricity Bill
• GSTIN, Udyog Aadhaar
• Aadhar Card