Business Loan Interest Rates

ZipLoan offers the lowest rate of interest rate on a business loan for all types of businesses including SME, MSME and Kirana stores. A business loan from ZipLoan will help you maintain your cash flow, manage inventory, and payment cycles.

The efficient running of your business depends on proper and timely availability of funds as they are necessary for investment as well as working capital. As an entrepreneur, you might fail to meet the ends through your savings or business revenue.

instant business loan

ZipLoan is the Lender of Choice for Small Businesses.


Minimal Documentation

No balance sheet needed


No Prepayment Charges

After first 6 EMIs


Receive Funds Within 3 Days*

Straight into your account

Business Loan Interest Models:

The business loan interest rate depends on two factors amount of loan and the tenure in which loan will be paid. There are two types of interest rate models: diminishing and a flat rate of interests.

Diminishing Rate of Interest - The principal amount reduces as the borrower starts paying the instalments of the loan. The interest will be applied to the remaining amount, not on the principal amount.

A Flat Rate of Interest - On the other hand, a flat rate of interest will be the calculated basis of the initial loan amount. Now you know the difference between the diminishing rate of interest and a flat rate of interest.

See below how MSME loan interest rate will be calculated:

 Flat Interest RateDiminishing Interest Rate 
Monthly Instalment3611132267
Total Amount Payable13000001161619

As you see the diminishing interest rate is more beneficial than a flat rate of interest.

Business Loan Interest Rate Model of ZipLoan:

Rate of Interest1% to 1.5% (Flat Rate)*
Tenure of the loanMaximum up to 36 months
Amount of LoanRs. 50,000 to 7.5 Lakhs
Pre-Closure FeesN/A (After Payment of 6 EMI)
Processing Charges1 to 2% of the loan amount
Loan Disbursal TimeWithin 3 working days*
EligibilityLast year turnover should be more than 10 lakh

NBFC Company: Business Loan Interest Rates and Fees

CompanyLoan AmountInterest RateTenure
ZipLoan1 to 7.5 Lakhs1% to 1.5% (Flat Rate)*Maximum 36 months
Bajaj Finserv1 to 40 LakhsStarts from 15%Maximum 36 months
Capital First1 to 9 LakhsStarts from 21%Maximum 36 months
Fullerton Finance1 to 50 LakhsStarts from 17%Maximum 48 months
HDB Finance Company75 Thousand to 30 LakhsStarts from 15.5%Maximum 60 months
IIFL Finance1 to 50 LakhsStarts from 25%Maximum 36 months
INDIFL Finance1 to 50 LakhsStarts from 22%Maximum 36 months
Hero Fincorp3 to 35 LakhsStarts from 18%Maximum 36 months
Lendingkart Finance 50 Thousand to 2 CroreStarts from 15%Maximum 36 months
NeoGrowth Finance2 to 10 LakhsStarts from 24%Maximum 24 months
PaySense Services India Private Limited5 Thousand to 5 LakhStarts from 24%Maximum 36 months
Tata Capital Finance3 to 50 LakhsStarts from 17%Maximum 36 months

Private Bank: Business Loan Interest Rates and Fees

Bank NameLoan AmountInterest RateTenure
HDFC Bank75 Thousand to 50 LakhsStarts from 15%Maximum 48 months
Axis Bank3 to 50 LakhsStarts from 14-25%Maximum 36 months
ICICI Bank1 to 40 LakhsStarts from 15%Maximum 48 months
Kotak Mahindra Bank5 to 75 LakhsStarts from 16%Maximum 48 months
RBL Bank2.5 to 75 LakhsStarts from 16%Maximum 36 months
Yes Bank30 Lakhs to 3 CroreStarts from 10%Depends on the loan amount

Note: Above mentioned interest rate, fees and depends on NBFCs and RBI guidelines. It is advised that you do enquiry before applying for a business loan because interest rate may vary from time to time.

What Impacts the Interest Rate?

Interest rates are one of the major deciding factors for applying for a loan for business. Proper research and better knowledge can help in opting for the best business loan that can fulfil all your business requirements and that too in your budget.

Let’s now take a look at the factors that affect unsecured business loan interest rates:

  • Credit History: It is a critical factor that is considered while deciding the interest rate for a particular application. The credit record must verify that you have never defaulted on a loan and you pay your EMIs and credit card bills on time. All loan lenders review the credit report and score before approving loan applications. So, the better the credit score, the better are the chances of getting lower than average business loan interest rates.
  • Business Vintage: Fully established businesses with a proven record of handling loans and credit are considered more trustworthy than the new businesses. A proved business vintage provides the loan lender with a sense of security which leads to lower small business loan interest rates.
  • Business Type: Some business industries are considered risky than others. In such cases, notwithstanding the number of loans you have availed and paid on time in the past, the nature and industry of your business will get you higher interest rates.
  • Revenue: Positive monthly revenue points towards the unlikeness of default payments. Consistency in business revenues and healthy business financials are important requirements, and hence, low-interest small business loans can be availed.

Benefits of Taking Business Loan from ZipLoan:

  • Minimum Documents: To avail business loan we don't need a bundle of business loan documents. All we need are:
    • Business address proof
    • Pan Card
    • You must either own a house or business premise
    • Bank statement of 9 months
    • ITR of the previous year
  • Loan Without Collateral: You don't need to mortgage anything to avail a business loan.
  • No Pre-payment Charges: Pre-payment charges are FREE after payment of first 6 EMIs.
  • Quick Loan Disbursal: We sanctioned the loan with 3 days* after getting business loan documents.

Why Avail a Business Loan?

You may prefer to avail of a business loan to keep the funds handy. Whatever the reason, business loans can be extremely beneficial for your business. Hence, if you’re looking for a business loan in Delhi, you can avail of the services from Ziploan, as we offer business loans at a low-interest rate and it has also become possible to avail of an online business loan from us.

Business loans are one of the most preferred ways of raising funds to run the business efficiently and meet all financial requirements. A business loan is preferred over all other ways of raising funds, such as angel investors, venture capitalists, and public funding for the following reasons:

Business Loans Are The Best Option for MSMEs:

  • Options for a shorter loan repayment tenure
  • Options for customisation
  • Business loan interest is tax-deductible
  • No need to give up or sell the stake, as in the case of equity
  • One can plan the business financials in advance easily as one knows the interest to be paid in EMIs

Apply Business Loans By City

Solving Real problems

Ram Yadav

I have been running my business for over twelve years but have not been able to undertake expansion activities. I applied to Ziploan and they cleared my loan application in a very short span of time.

Kanchan Lata

I approached Ziploan for an equipment finance loan. Their eligibility criterion was easy to fulfill because it required only 2 years ITR and 10 lacs of annual banking credit.

Ready for Ziploan to
empower your business ?