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.

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ZipLoan is the Lender of Choice for Small Businesses.

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Minimal Documentation

No balance sheet needed

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No Prepayment Charges

After first 6 EMIs

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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 
Amount10000001000000
Monthly Instalment3611132267
Interest300000161619
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
CollateralN/A
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:

Benefits of Taking Business Loan from ZipLoan:

Why Avail a Business Loan?

You may prefer to avail 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 the services from Ziploan, as we offer business loans at a low-interest rate and it has also become possible to avail 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:

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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.

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