Small firms profit significantly from business loans since they enable them to expand and prosper. In this article we will see Business loan interest rate in 2021. These loans can be used to fund infrastructure development, operations, expansion, and even cash flow management. Business loans are available in a variety of forms, including microloans, SME loans, and MSME loans. As a result, this loan can be customized to fit the size and demands of the firm. Additionally, new firms and startups can get customized business loans to match their unique demands. Thus, business loans are critical in assisting businesses in growing and surviving in a highly competitive economy.
The interest rate on every loan is critical since it determines the borrower’s overall borrowing cost. And when it comes to business loans, the interest rate is slightly greater than on other types of loans.
Following is the business loan interest rate in 2021:
|Lenders||Interest Rate (p.a.)||Loan Amount (Max.) in Rs.||Repayment Tenure (Months)|
|HDFC Bank Business Loan||15% onwards||75 lakh||6 – 48|
|ICICI Bank Business Loan||16% onwards||40 lakh||6 – 48|
|Kotak Mahindra Bank||16% onwards||75 lakh||6 – 48|
|Axis Bank Business Loan||17% onwards||50 lakh||12 – 36|
|Fullerton Finance||17% onwards||50 lakh||12 – 48|
|Lendingkart Finance||17% onwards||1 Crore||3 – 36|
|Bajaj Finserv||18% onwards||20 lakh||12 – 48|
|Hero FinCorp||18% onwards||25 lakh||12 – 36|
|IIFL Finance||18% onwards||50 lakh||12 – 36|
|Indifi Finance||18% onwards||50 lakh||12 – 36|
|PaySense Services India Pvt. Ltd.||18% onwards||5 lakh||3 – 36|
|Tata Capital Finance||18% onwards||30 lakh||12 – 36|
|ZipLoan Business Loan||18% onwards||5 lakh||6 – 24|
|IDFC First Bank Business Loan||19% onwards||75 lakh||12 – 60|
|RBL Bank||19% onwards||20 lakh||12 – 36|
|HDB Financial Services Ltd.||22% onwards||30 lakh||12 – 60|
|NeoGrowth Finance||24% onwards||75 lakh||6 – 24|
Small firms benefit greatly from business financing.
When you apply for a business loan, it is because you require capital to fund your venture. To be sure, a business loan is not the only way to support your organization’s working capital requirements. Additionally, you can obtain the necessary funds through alternative sources such as angel investment, crowdsourcing, and government business credit programs for small and micro businesses.
However, in addition to selecting a funding source, it is critical to assess your repayment capacity and ask for a loan amount that can be repaid without straining your resources. Therefore, thoroughly analyse all of your financial possibilities before to applying for a company loan, and don’t forget to compare interest rates.