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Business Loan Interest Rates

The first question anybody asks regarding a Business Loan in Bangalore is what would be the Interest Rates? The answer is simple, however difficult for many to understand. Here are a few pointers

  1. Generally, banks charge a reducing rate of interest which means interest is charged on actual principle component every month
  2. Interest rates start from 13% and can go up to 32% per annum
  3. Some banks charge flat 2% monthly interest
  4. Most of the customers fall into the 17-20% bracket since only very few lenders provide 13-16% rate of interest
  5. Rate of interest is factored on many parameters- Annual Turnover, CIBIL Score, Banking score, Industry & Customer profile, etc
  6. You can negotiate a better rate of interest on subsequent loans once you have serviced a loan for at least 12 months.
  7. Generally, banks provide better interest rates compared to N.B.F.C’s

For a better understanding of Business Loans & Rate of interest get in touch with us

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