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