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Compare Business Loan Interest Rates
Maximize your profits by minimizing interest costs. Compare offers from 25+ top banks & NBFCs starting at just 11.99% p.a. tailored to your turnover.
Rates starting @ 11.99%Fixed & Floating OptionsCompare 20+ Lenders
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Loan Details
Business Loan Interest Rates Calculator
Calculate your EMI and total interest for business loans.
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Representative Example:
Borrow ₹2,00,000 over 12 months at 25.8% APR. Total repayment: ₹2,29,038.83 with monthly EMIs of ₹19,086.57.
EMI Calculator
₹2,00,000
12
25.8%
Monthly EMI
₹19,086.57
Total Interest
₹29,038.83
Business Loan Offers
Access unsecured capital for your enterprise. Compare offers from top NBFCs specializing in MSME finance. Check your eligibility for a business loan offers today.
| Lender | Interest Rate (p.a.) |
|---|---|
| Bajaj Finserv | 17.00% onwards |
| LendingKart | 1.5% per month |
| Tata Capital | 16.50% onwards |
| IDFC First Bank | 14.00% onwards |
| NeoGrowth | 18.00% onwards |
Business Loan Charges
Business loans generally have higher processing fees due to the complexity of assessment:
| Particulars | Charges |
|---|---|
| Processing Fees | 1.5% to 3.5% of loan amount |
| Foreclosure Charges | 4% to 6% of principal outstanding |
| Documentation Charges | ₹ 2,000 - ₹ 5,000 |
| Bounce Charges | ₹ 750 - ₹ 1,500 per instance |
| Renewal Fees | 0.5% to 1% (For Cash Credit/Overdraft limits) |
Other fees and charges levied by the lenders include documentation charges, verification charges, duplicate statement charges and NOC certificate charges.
Factors Affecting Business Loan Interest Rates
Lenders set business loan interest rates primarily based on internal credit risk policies and applicant credit profiles. However, several other critical factors influence the final rate offered.
Type of Loan Scheme
Interest rates vary across facilities. For instance, rates for an MSME loan differ significantly from rates for Bill/Invoice Discounting.
Collateral & Security
Pledging high-value assets reduces the lender's credit risk, consequently attracting lower interest rates compared to unsecured loans.
Occupation Profile
Self-employed professionals often enjoy lower rates than non-professionals. MSME loans generally carry higher rates than individual professional loans.
Business Profile
Manufacturing firms (with tangible assets) are considered safer than service-based businesses, which often face higher rates due to lack of collateral.
Business Financials
Strong, steady, and rising revenues signal financial stability. Lenders reward consistent growth with better loan terms.
Credit Score & History
A high score and clean repayment record strengthen credibility. Disciplined credit behavior significantly improves chances of favorable rates.
How to Get Business Loans at Lower Interest Rates?
- Maintain a good repayment history and a credit score above 750.
- Leverage existing relationships with banks and NBFCs for preferential rates.
- Compare offers from top lenders on aggregators to find the lowest rate.
- Offer collateral or security to reduce credit risk for the bank.
- Opt for government-backed schemes that offer interest concessions.
Top Government Business Loan Schemes
These schemes are offered in collaboration with leading private/public sector banks and NBFCs in India.
MUDRA Loans (PMMY)
PMEGP Scheme
SIDBI Make in India (SMILE)
CLCSS Subsidy Scheme
PSB Loans in 59 seconds
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