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.
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 Rate
Diminishing Interest Rate
Amount
1000000
1000000
Monthly Instalment
36111
32267
Interest
300000
161619
Total Amount Payable
1300000
1161619
As you see the diminishing interest rate is more beneficial than a flat rate of interest.
NBFC Company: Business Loan Interest Rates and Fees
Company
Loan Amount
Interest Rate
Tenure
ZipLoan
1 to 7.5 Lakhs
1% to 1.5% (Flat Rate)*
Maximum 36 months
Bajaj Finserv
1 to 40 Lakhs
Starts from 15%
Maximum 36 months
Capital First
1 to 9 Lakhs
Starts from 21%
Maximum 36 months
Fullerton Finance
1 to 50 Lakhs
Starts from 17%
Maximum 48 months
HDB Finance Company
75 Thousand to 30 Lakhs
Starts from 15.5%
Maximum 60 months
IIFL Finance
1 to 50 Lakhs
Starts from 25%
Maximum 36 months
INDIFL Finance
1 to 50 Lakhs
Starts from 22%
Maximum 36 months
Hero Fincorp
3 to 35 Lakhs
Starts from 18%
Maximum 36 months
Lendingkart Finance
50 Thousand to 2 Crore
Starts from 15%
Maximum 36 months
NeoGrowth Finance
2 to 10 Lakhs
Starts from 24%
Maximum 24 months
PaySense Services India Private Limited
5 Thousand to 5 Lakh
Starts from 24%
Maximum 36 months
Tata Capital Finance
3 to 50 Lakhs
Starts from 17%
Maximum 36 months
Private Bank: Business Loan Interest Rates and Fees
Bank Name
Loan Amount
Interest Rate
Tenure
HDFC Bank
75 Thousand to 50 Lakhs
Starts from 15%
Maximum 48 months
Axis Bank
3 to 50 Lakhs
Starts from 14-25%
Maximum 36 months
ICICI Bank
1 to 40 Lakhs
Starts from 15%
Maximum 48 months
Kotak Mahindra Bank
5 to 75 Lakhs
Starts from 16%
Maximum 48 months
RBL Bank
2.5 to 75 Lakhs
Starts from 16%
Maximum 36 months
Yes Bank
30 Lakhs to 3 Crore
Starts 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 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:
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
Frequently Asked Questions
How is the interest amount calculated on a small business loan?
Business loan interest cost is calculated using the following formula:
EMI = P x R x (1+R)n / [(1+R)n-1]
Here, P is the principal loan amount, R is the rate of interest, and n is the loan tenure. You can use our EMI calculator to check your EMI amount instantly and hassle-free.
What is the processing fee charged by ZipLoan for business loans?
We charge a minimal amount of 1-2% of the loan amount as the processing fee at the time of sanctioning the loan.
What is the loan tenure offered by ZipLoan?
We offer a minimum of 12 months and a maximum of 36 months as loan repayment tenure.
How much does ZipLoan charges as prepayment penalty?
ZipLoan doesn’t charge any prepayment charges after the payment of the first 6 EMIs on the foreclosure of the loan account.
What is the average interest rate on a business loan?
The average interest rate on a conventional small business loan is around 3% to 7%.
Should I provide collateral to avail business loan from ZipLoan?
No. We offer a collateral-free business loan.
What is the current interest rate on a commercial loan?
The average commercial loan interest rate is about 3% to 12%.
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.
Babu Lal
I always thought that loans and credit facilities were only available to large businesses with significant turnover. I never thought I would be eligible to qualify for a business loan too. Ziploan is boon for small enterprises like me.
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