Lendingkart Business Loan Interest Rates
Last Updated : Nov. 27, 2019, 1:35 p.m.
Are you planning to grow your business? You are tired of looking for a loan without collateral. Then you have come to the right place because LendingKart gives business loan without collateral. But before taking a business loan you must see the rate of interest and then apply accordingly. You can go through the Lendingkart Business Loan interest rates but first, see the two types of business loan interest rates.
Lendingkart Business Loan Interest Rate April 2024
| Particulars | Details |
|---|---|
| Interest Rates | 1-2% per month |
| Processing Fee | 2% of the loan amount |
| Loan Amount | ₹50,000 - ₹2 Crore |
| Tenure | Up to 36 Months |
| Processing (Turn Around Time) | 3 working days (if documents are completed) |
| Pre Closure Charges | NIL |
| Collateral | Not Required |
Basically, your business loan interest rates depend on the loan amount and tenure. These are two types of interest and those are Diminishing and Flat interest rates.
Diminishing Interest Rates
The interest rate calculated on the outstanding business loan amount every month. This reduces the principal deficiency every month. With the payment of each EMI, some amount will be adjusted against the principal so that the remaining amount goes towards interest. Therefore, interest for the next month is calculated only on the outstanding loan amount as reduced by the principal repayment this month. Get to know more through an example:-
Suppose, If you take a loan of ₹ 1 lacs and paying an EMI of ₹ 10000 then the interest for the next EMI will be calculated on the ₹ 90000.
Flat Interest Rates
The interest rate is calculated on the entire principal amount during the complete loan tenure. The amount of interest is fixed during the loan tenure. Understand through the below examples:-
Suppose, If you pay ₹ 10,000 of ₹ 1 Lac loan, then the interest for the next EMI will be calculated on ₹ 1 Lacs.
Some of the factors that Affect Business Loan Interest Rates
Now you can clearly understand the points given below on how Lendingkart Business Loan interest rates are affects.
CIBIL Score:- In today’s time, everyone knows that the CIBIL score matters a lot when availing of any loan. Therefore repayment of the card and loan history is an important factor affecting your CIBIL Score . The range starts from 300 to 900, so a CIBIL score between 750 and 900 is the best for getting a loan. If you have a Cibil score of 750 or more then get a business loan at a lower interest rate.
Business Experience:- Your business experience tells how long you have been running business activities. Therefore, borrower business experience is a positive sign for the lenders. People who have been in the same business for many years have the option to get lower interest rates.
Annual Turnover:- The main factor in deciding the loan amount and the interest rate is the annual turnover of your business. Therefore, the interest rate is determined by comparing your business profit. A borrower may negotiate with a lender for a low rate of interest due to the high turnover of the business.
Profit:- Before negotiating an interest rate check that your business is in profit or loss. If your business is in profit then you can take advantage of lower interest rates. So the interest rate will be decide according to your benefit.
How does the Rate of Interest Affect EMI Amount?
You can see how the rate of interest fluctuates the EMI amount from the table given below. In order to calculate the EMI, you can use Lendingkart Business Loan EMI Calculator .
| Principal Amount | Rate of Interest | Tenure | Equated Monthly Instalment (EMI) |
|---|---|---|---|
| ₹1,00,000 | 20% | 36 Months | ₹3,716.36 |
| ₹1,00,000 | 22% | 36 Months | ₹3,819.05 |
| ₹5,00,000 | 24% | 36 Months | ₹19,616.43 |
| ₹5,00,000 | 22% | 36 Months | ₹28,315.7 |
Now you can see in the table mentioned above that the Tenure and the Principal amount are the same but the fluctuation in the interest rate is manipulating the amount of EMI.
Some Important Documents for Business Loan
These are the documents that will help you to avail Lendingkart Business Loan .
- Identity Proof:- (Anyone) Pan Card, Aadhaar Card, Passport
- Address Proof:- (Anyone) Aadhaar Card, Registration Proof, Voter I.D, Bank Statement.
- Business Registration Proof:- Pan Card, GST, Trade License, Any Registration Certificate issued by RBI or SEBI.
- Last 2 years Income Tax Return (ITR)
- Last 1 year Bank Statement.