Business Loan Interest Rates

Risk related rate of Interest
  • The interest rate charged to the customer is based on the customer profile, credit bureau score, property type, market competition offerings, etc.
  • The interest rate applicable will vary from time to time and will be mentioned against the specific operative schemes/loan products.
Mode of Calculation
  • The interest rate will be quoted on an annualized basis only.
  • Compounding, if any, will be provided in specific loan schemes.
Penal Charges
  • 1.5% per month on overdue amount for actual days of due.
  • Cheque bounce charges
    Rs.300/- (for first instance)
    Rs.400/- (for second instance)
    Rs.500/- (from third instance onwards)
    Bounce charges will be added along with the next instalment.
ParameterDetails
Customized Interest Rates13% to 22.08%
Processing FeesMinimum 1% + Applicable tax
Loan Tenureup to 10 years
Pre/ Part Payment ChargesPart prepayment up to 25% of the Loan Amount can be made in a Financial Year. Part prepayment in excess of this limit will be subject to pre-payment charge of 2% of the loan amount prepaid plus Applicable Taxes
Fore-Closure Charge2% of Principal Outstanding +Applicable Taxes (only after payment of 3 EMIs)
Loan Amount₹ 5 lakh – ₹ 50 lakh
InstalmentsFlexible Monthly

FAQ Business Loan Interest Rates

What is the business loan interest rate?

The business loan interest rate is customized based on factors such as the customer's profile, credit bureau score, property type and prevailing market conditions. The applicable rate may vary by loan scheme.

How is the business loan interest rate calculated?

The business loan interest rate is quoted on an annualized basis. The applicable rate is determined based on the customer profile, credit bureau score, property type, market conditions and specific loan scheme

What charges apply to a business loan?

Business loan charges may include processing fees, prepayment or part-payment charges, foreclosure charges and applicable penal or cheque bounce charges, depending on the applicable terms.

Can the business loan interest rate vary?

Yes. The applicable business loan interest rate can vary based on the customer's profile, credit bureau score, property type, market conditions and the specific operative loan scheme.