Business Loan Interest Rates

Most banks and NBFCs run special schemes for small businesses or MSMEs, which offer lower interest rates and other benefits. Additionally, the government also has multiple schemes in place offering interest rate concessions. 

To use a business loan EMI calculator, simply enter the loan amount, tenure and interest rate and get instant results.

Lenders determine the business loan interest rates based on various factors, such as the borrower’s credit risk profile, the financial health of the business, the loan type, loan amount and tenure, collateral offered, nature and size of business and existing relationship with the lender.

Several banks, NBFCs and financial institutions offer competitive interest rates on business loans. However, the exact business loan interest rates offered shall depend on various factors, such as your credit score, loan type (secured/unsecured), business financials, and loan amount and tenure.

To avail low-interest rate business loans, you need to have a strong credit profile with good repayment capacity, as well as you need to choose the right loan type and lender, and search for loans offered under government schemes. Here you can check and compare loan options offered by various banks and NBFCs and choose as per your business requirements.

Yes, MSMEs often qualify for concessional or subsidized business loan interest rates, specifically when borrowing through various Government-backed loan schemes, such as MUDRA under PMMY, PMEGP, CGTMSE, CLSS, etc.

Yes, you can surely negotiate on your offered business loan interest rates with a bank, primarily if you have strong financials and maintain a healthy relationship with the lending bank.

At Paisabazaar, you can explore, compare, and apply for unsecured business loans from various banks and NBFCs that do not require any collateral or security for loan approval. However, secured business loans are backed by collateral or security.

There is no minimum limit to borrow, whereas the maximum loan is up to Rs. 2 crore for unsecured business loans that are collateral-free. However, some specific lenders offer small business loans starting from as low as Rs. 10,000.

It depends on the banks or lenders to offer fixed or floating interest rates. However, most banks prefer fixed interest rates over floating. Largely, the interest rates offered by private sector banks are fixed.

Usually, the minimum repayment period is 12 months, whereas the maximum repayment period is 5 years; however, it may be extended as per business requirements.

The pre-closure or foreclosure for business loans shall vary from lender to lender and range from Nil to 5% of the balance principal outstanding amount.