Business Loan Rates 2020273 views
- Latest interest rates for Proprietor / LLP / Private Limited / Partnership / Public Limited ranging from 17% -21%.
- Some important factors that affect Business Loan Interest Rates.
A Business loan helps in running your business smoothly. So if you are willing to take a business loan then Fullerton India business loan would be suitable as its rate of interest starts from 17%. The maximum limit for the Fullerton India Business Loan interest rate is 21%. The interest rate is decided on many factors such as business location, annual turnover, net income, business stability. Now see the types of interest rates offered by Fullerton India.
Type of Interest Rates
Flat Interest Rates:- The interest rate is calculated on the entire loan amount, so the effective rate is higher. Understand with an example:-
Suppose, you have taken a loan of ₹2 lacs and have paid EMI of ₹20,000, then the interest for the next EMI will be calculated at Lac ₹2 lakh
Diminishing Interest Rates:- In Diminishing methods Interest is calculated on the outstanding principal balance after deducting the previous EMI. The effective rate is low. Understand with an example:-
Suppose, you have taken a loan amount of ₹ 2 lacs and paying an EMI of ₹ 20,000 then the interest for the next EMI will be calculated on the ₹ 180,000.
Interest Rate and Other Charges of Fullerton Business Loan
Know the latest Interest Rate, Cheque Swapping Charges, Processing Fees, Loan Cancellation Charges, Fore-Closure Charges in the table given below:-
|Interest Rate||17% - 21% p.a (Reducing)|
|Processing Fee||Up to 6.5% of the loan amount|
|Collection Charges of Cheque and Cash||₹300|
|ECS dishonoured / Cheque Charges||₹300|
|Replacement Charges of Post-dated cheque to ECS||₹500|
|Replacement Charges of ECS to ECS||₹500|
|Charges for Loan Cancellation||₹1000|
|Delay in EMI Payment Interest||2% of overdue EMI amount per month|
In the below table understand Fullerton India Business Loans Foreclosure Charges in details.
|0-6 Months||Not Permitted|
|36 or more Months||0%|
In the above table, it is clearly mentioned how much interest will be charged if you stop or clear the ongoing loan before the expiration of the tenure.
Major Factors that Affects the Business Loan Interest Rates
As we know that all banks and NBFCs offer different interest rates to different borrowers. Basically, the interest rate depends on the repaying capacity of the borrower. So, these are some factors that affect interest rates.
CIBIL Score:- Lenders always check the Cibil score before approving the loan amount. Basically, the credit score indicates the borrower’s capacity to repay the loan. So your good credit score helps in charging a lower interest rate.
Cash Flow:- Every lender who lends money always checks the cash flow of your business. If the cash flow of the business is good, then lenders offer lower interest rates than poor cash flow. So lenders set interest rates based on current economic conditions and default of the borrower for the loan.
Nature of Business:- As we know that not all businesses are equal, it can be manufacturing, traders or service industries. Therefore all businesses have different characteristics. The interest rate will be determined according to your business activities such as turnover, revenue, previous credit.
Good Relationship:- Relationships play a big role in financing decisions. If you are an existing customer of Fullerton India then your relationship is good. So looking at your previous track Fullerton India gives a lower interest rate on your business loan.
Business Experience:- The experience of each running business matters a lot. So that the old business gets more opportunities to get a loan at a lower interest rate.
Loan Amount:- This is another most important factor that helps in lending to fix the interest rate. All lenders have multiple slabs according to which the interest rate changes. If the loan amount is high then the interest will be less so if the amount is less than the interest will be more.
How Does the Rate of Interest Affect EMI Amount?
The Rate of interest plays an important role in EMI fluctuations. You can see from the table given below that how Fullerton India Business Loan Interest rate affect the amount of EMI.
|Principal Amount||Rate of Interest||Tenure||Equated Monthly Instalment (EMI)|
This table will give you a clear picture that how business loan interest rates affect the amount of EMI. If you want to calculate the EMI by putting different figures then you can use the Fullerton Business Loan EMI Calculator.