- What are the key factors affecting my business loan interest rates?
- Credit History and Record
- Tenure of the company
- Turnover of the Business
- What is the average interest rate charged on business loans?
In the current market, business loan interest rates range from 6-48% per annum.
- What are the types of business loans available in the market?
Applicants can get secured or unsecured business loans. A few types of business loans include working capital loans, equipment loans, lines of credit, term loans and more.
- How much credit score is required to get a business loan?
A credit score of 700 and above is considered good for a business loan. A 700 and above credit score will get you the lowest interest rates on your business loan.
- Can I get a business loan with a credit score of less than 700?
Yes, you can get a business loan with a credit score of less than 700 but the interest rate and other loan terms would not be favorable to you.
- What is the minimum business age expected to give me a business loan?
This factor varies from bank to bank but on average, lenders expect your business to have been up and running for a minimum of two years.
- What kind of annual turnover do lenders expect to give me a business loan?
Your business turnover is an important factor in determining your business loan eligibility. Most lenders expect an annual turnover of a minimum of Rs.1.5 – 2 lakhs to process a business loan of Rs.10 lakhs. Based on the loan amount, the annual turnover requirement varies.
- How much business loan can I get?
Eligible applicants can get business loans starting from Rs.10,000 and up to Rs.1 crore.
- What kind of interest rates do banks charge?
Public sector or private sector banks charge relatively lower interest rates on business loans; you can get interest rates in the range of 6-24% from banks.
- Is the interest rate in NBFCs higher than banks for business loans?
The NBFC interest rate for business loans is a tad bit higher compared to banks; their interest rate ranges from 10% – 36%.
- What are the business loan interest rates charged by online lending apps or instant loan apps?
The business rate from these lenders is generally higher since they offer unsecured loans instantly; the interest rates with them range from 12% – 48% per annum.
- Will I get a lower interest rate on my business loan if I produce some collateral?
Definitely. When you go for a secured business loan, you can get a lower interest rate and higher loan amount.