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Capital Float Business Loan Interest Rates

Highlights

  • Some of the Factors that affects the interest rate.
  • How the Interest rate affects the EMI amount.
  • Know different methods of Interest Rate.

Capital Float Business Loan Interest Rates – In today’s world every business needs funds to grow but due to high interest rate the fund is not taken from anywhere. So here is the solution to every problem. Get a business loan at the lowest interest rate from capital float. The rate of interest is fixed on several factors such as Cibil score, business nature, cash flow and profit. This loan is collateral free business loan.

Interest Rates and Other Details of Capital Float

Know your business loan interest rate, loan amount, tenure (for how long you takes loan), a processing fee and pre- payment charges in the below table.

ParticularsDetails
Loan Amount₹ 1 Lacs- ₹ 1 Crore
Tenure1 Months- 36 Months
Interest RateStarts from 18% per annum
Processing FeeUp to 2% of the loan amount
Pre- payment ChargesNIL

Different Types of Interest Rates

So, basically the business loan interest rate decided on your principal amount and loan tenure period. The Capital Float Offers you two different types of interest rates that is flat and diminishing interest rate.

Flat Interest Rates:- The Flat interest rate is calculated over the entire loan amount, so the effective interest rate is higher. The amount of interest is fixed during the end of the loan. Now understand by an example –

Suppose, if you are paying EMI of ₹ 5,000 of ₹ 250,000 loan, then the interest for next EMI will be calculated on ₹ 250,000.

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Diminishing Interest Rates:- Diminishing methods calculate the interest on the outstanding principal amount after deducting the previous EMI. The interest rate may be low as compared to flat interest rate. Now lets understand with an example –

Suppose, If you take a loan of ₹ 250,000 and paying an EMI of ₹ 5,000 then the interest for the next EMI will be calculated on the ₹ 245,000.

These are the Factors Affects the Capital Float Business Loan Interest Rates

As the main question arises by the borrower this is why the same lender offers different interest rates. To understand clearly the points given below.

CIBIL Score:- The Cibil score is a three-digit numerical score. The range starts from 300 to 900. Basically the Cibil score detects your ability to pay back the loan. Always keep in mind that a high Cibil score indicates a good credit history. If you are having good Cibil score so you have more chances to avail loan at low interest rate.

Cash Flow:- As all banks and financial institutions want the cash flow of your business should be reasonable. There should be proper inflow and outflow of cash. Therefore your cash flow must be high to take advantage of low interest rate.

Business Nature:- A business must belong to manufacturing, traders or service industries. All businesses have different characteristics so the rate will be determined on your business operations like monthly turnover, profit, revenue, past history etc.

Profit:- Lenders always check the monthly and annual profit of your business before deciding the interest rate. Good profit increases loan capacity so rates will be decided accordingly. If your business profit is high, the interest rate may be lower.

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How Does the Interest Rate Affects the EMI Amount?

So you can see how the rate of interest fluctuates in the EMI amount from the table given below. You can also calculate EMI with the help of business loan EMI calculator.

Principal AmountInterest RateTenureEMI (Equated Monthly Installment)
5,00,00018%12 Months45,840
5,00,00020%24 Months25,448
5,00,00021%36 Months18,838

It is necessary to know the business loan interest rates before applying for a business loan.

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Personal Loan Interest Rates July 2020
Fullerton India14.00% - 33.00%
HDFC Bank10.75% - 21.45%
ICICI Bank10.99% - 18.49%
IndusInd Bank11.25%
Kotak Bank10.99% - 20.99%
RBL17.50% - 24.00%
Standard Chartered Bank11.50% - 18.00%
Tata Capital10.99% - 18.00%
Home Loan Interest Rates July 2020
Axis Bank7.75% - 8.55%
Bank of Baroda6.85% - 7.85%
Citibank8.20%
HDFC6.95% - 8.00%
ICICI Bank7.45% - 8.55%
Indiabulls Housing Finance Limited8.80% - 11.05%
Kotak Bank7.40% - 9.70%
LIC Housing7.40% - 8.85%
Piramal Capital & Housing Finance9.00% - 9.10%
PNB Housing Finance8.60% - 9.45%
Reliance Home Finance8.75% - 14.00%
State Bank of India/SBI6.95% - 7.60%
Tata Capital9.20% - 9.35%