Business Loan Interest Rates


Business loan interest rates from banks and non-banking financial companies (NBFCs) typically begin at 9% per year. However, these rates can vary based on factors like credit scores, business type, income, and collateral. It's important for loan applicants to compare rates from different lenders before applying.

Comparison Table of Business Loan Interest Rates offered by MybankingTips Partners:

Bank/NBFC/Fintech Interest Rate  
SBI Bank 9.10% p.a. Apply Now
HDFC Bank 10.00% - 22.50% p.a. Apply Now
Kotak Mahindra Bank 16% p.a. onwards Apply Now
RBL Bank 14%-26% p.a. Apply Now
ICICI Bank Up to 17% p.a. Apply Now
Axis Bank 10.75% p.a. Apply Now
IDBI Bank 8.05% to 13.45% p.a Apply Now
Bank Of Baroda 10% to 15% p.a Apply Now
Ujjivan Small Bank Up to 2.50% Apply Now
Bajaj Finserv 9.75% - 25% p.a. Apply Now
IIFL Finance 12.75% - 44% p.a. Apply Now
FlexiLoans 1% per month onwards Apply Now
ZipLoan 1% - 1.5% per month (Flat) Apply Now
Indifi Finance 1.5% per month onwards Apply Now
Five Star Business Finance Up to 2% Apply Now
Lendingkart Finance 1.25% per month onwards Apply Now
Tata Capital Finance 12% p.a. onwards Apply Now
NeoGrowth Finance 15% p.a. onwards Apply Now
Hero FinCorp Up to 26% p.a. Apply Now
Aye Finance Up to 2.5% Apply Now
Clix Capital Up to 3% Apply Now
Protium Finance Up to 1.5% Apply Now
HDB Finance 8% - 26% p.a. Apply Now
U GRO Capital Up to 9% p.a. Apply Now
Mcapital Business Up to 2% p.a. Apply Now

Tips to Lower Interest Rates on Business Loans

  • Keep your credit score healthy.
  • Provide collateral or security to increase your chances of approval.
  • Maintain strong cash flows.
  • Compare offers from multiple lenders to find the best terms.
  • Refinance existing loans with higher interest rates to save money.
  • Check eligibility for government schemes offering interest subsidies.

Business Loan EMI Calculator

You can use a business loan EMI calculator to figure out your monthly installment amount for various interest rates and repayment periods. These calculators also show you the total interest you'll pay over the loan term. Many lenders offer these calculators on their websites, or you can find them on online financial marketplaces. Just input the loan amount, interest rate, and repayment period to get your EMI and total interest payable. It helps you choose the best EMI for your needs.

Factors Affecting Business Loan Interest Rates

Business loan interest rates are mainly decided by lenders based on how much it costs them to get the money, how much they want to earn from lending it out, and how risky they think your business is. Here are the main things that can affect the interest rates you're offered for a business loan:

  • Credit Scores: Lenders check the credit scores of people applying for business loans, especially for ones without collateral. If you have a good credit score, you're more likely to get a lower interest rate. That's because lenders see higher scores as a sign that you're good at handling money. If your score is lower, lenders might either reject your loan application or charge you a higher interest rate to make up for the risk. So, it's smart to work on keeping your credit score high to boost your chances of getting a loan with a lower interest rate.
  • Business income: Lenders check how much money your business makes when deciding on the interest rates for loans. Some lenders need you to earn a certain amount each month or year to qualify for a loan. If your business makes more money, lenders think you're better able to pay back the loan, so they're more likely to give you a lower interest rate.
  • Nature of the collateral/security: When you're applying for a business loan, lenders look at the value and type of asset you're offering as security. If you provide an asset that's worth more, you're more likely to get approved for the loan with a lower interest rate.
  • Type of loan facility: Different lenders provide various types of business loans, like ones for working capital, invoice discounting, cash credit, term loans, overdrafts (secured or unsecured), commercial property loans, and more. The interest rates can differ based on the type of loan you're applying for.

Frequently Asked Questions

Yes, it's possible to get your bike financed even as a student if you meet the specific eligibility criteria set by the lenders.

The best loan for financing your bike or scooter is the one with the lowest interest rate. This way, you'll have to pay less in monthly installments (EMIs) throughout your loan term.

To get financing for your motorcycle, bike, or scooter, you can easily apply for the loan online from home. Or, if you prefer, you can go directly to a bike shop and apply for the loan there by giving them the documents they need

You can check your loan status online through internet banking. Another option is to visit the closest branch of the bank or financial institution that's providing the loan.

Many lenders consider a credit score of 620 and above to be good when giving out loans for motorcycles, superbikes, or scooters. However, if your credit score is lower than 620, you can still find lenders who may be willing to give you a loan, although they might charge a higher interest rate.

Banks allow you to make prepayments after successfully paying 3-6 EMIs. Depending on the number of EMIs you've already paid, there might be a small fee applicable on the outstanding amount when you choose to prepay.