Understanding Business Loan Interest Rates in India: Factors, Comparison & Tips
When applying for a business loan, interest rates play a crucial role in determining the total repayment amount. Business loan interest rates vary based on factors such as the borrower’s credit score, business turnover, loan amount, and tenure. Banks and NBFCs offer business loans with interest rates ranging from 8% to 24% per annum. Government schemes such as Mudra Loans and SIDBI loans provide lower interest rates to eligible businesses. Fixed vs. floating interest rates impact loan affordability, and understanding the differences can help borrowers make informed choices. Additionally, factors like loan security (secured vs. unsecured loans), lender policies, and market conditions influence interest rates. This blog explains how to get the lowest business loan interest rates, negotiate with lenders, and use EMI calculators for better financial planning.