Business loan interest rate in 2021

Business loan interest rate in 2021

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:

LendersInterest Rate (p.a.)Loan Amount (Max.) in Rs.Repayment Tenure (Months)
HDFC Bank Business Loan15% onwards75 lakh6 – 48
ICICI Bank Business Loan16% onwards40 lakh6 – 48
Kotak Mahindra Bank16% onwards75 lakh6 – 48
Axis Bank Business Loan17% onwards50 lakh12 – 36
Fullerton Finance17% onwards50 lakh12 – 48
Lendingkart Finance17% onwards1 Crore3 – 36
Bajaj Finserv18% onwards20 lakh12 – 48
Hero FinCorp18% onwards25 lakh12 – 36
IIFL Finance18% onwards50 lakh12 – 36
Indifi Finance18% onwards50 lakh12 – 36
PaySense Services India Pvt. Ltd.18% onwards5 lakh3 – 36
Tata Capital Finance18% onwards30 lakh12 – 36
ZipLoan Business Loan18% onwards5 lakh6 – 24
IDFC First Bank Business Loan19% onwards75 lakh12 – 60
RBL Bank19% onwards20 lakh12 – 36
HDB Financial Services Ltd.22% onwards30 lakh12 – 60
NeoGrowth Finance24% onwards75 lakh6 – 24
Business loan interest rate in 2021

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.

Read More| What You Need to Know About Small Business Loans in India

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