- Personal LoanPersonal Loan
- Business LoansBusiness Loans
- Loan Against PropertyLoan Against Property
- Home Loans
- Loan Against SecuritiesLoan Against Securities
- More Loans
- Insurance Solutions
- Value Added ServicesValue Added Services
A business loan interest rate is one of the most important factors to consider when applying for a loan, as it directly affects your monthly EMIs and the total loan cost. It is essentially the percentage a lender charges on the amount borrowed to finance business needs. The interest rates of a business loan are determined by the lender based on several factors, such as the business income, creditworthiness, financial health, repayment capacity, and more.
At SMFG India Credit, we offer customised business loan solutions with competitive rates that match your business needs and financial profile.
No matter what your need is – working capital, purchase of new machinery, or business expansion, our affordable solutions will ensure that you meet your business loan requirements in the easiest and most convenient manner.
Upon receiving your application, you will first be evaluated for eligibility as per our policy at the time of loan application based on the information you provide us. If deemed eligible, our representative will get in touch with you to understand your requirements in detail and set up an appointment for document collection. Depending on what you require, your credit score, business turnover and other financials, we will arrive at the best possible and minimum business loan interest rates that can be offered to you.
Below is an overview of the interest rates of a business loan and other charges. A detailed breakdown of the charges will be a part of your loan documents.
Fee Type |
Applicable Charges |
Interest Rate |
Minimal and competitive interest rates (depending on several factors, including location, net income, business stability, collaterals, existing monthly obligations, etc.) |
Loan Amount |
Up to INR 75 lakhs* |
Loan Tenure |
Up to 60 months* |
Processing Fees |
Up to 5% of the total loan amount + GST |
Organisation Type |
Proprietorship, Partnership, Private Limited, Closely held or unlisted companies, LLPs, Educational Institutes and Hospitals run by Trusts/Societies. |
Here’s a table of fees and charges for SMFG India Credit business loans to help you understand the same in detail:
Fee Type |
Applicable Charges |
Late Payment Charges |
Up to 3% per month (36% per annum) on overdue amount calculated on a day-to-day basis payable from the relevant due date till the date of actual payment. |
Collection of Cheque/Cash (per collection) |
NIL |
Cheque/ECS Dishonoured Charges (per dishonour of cheque/ECS per presentation) |
Rs. 300 to 1000 |
Swap Charges - For any change in repayment instruments (per instance) |
INR 500 |
Loan Cancellation Charges (loan cancelled before first EMI) |
Rs. 1000 - 2500 |
No. of EMIs paid (Excluding Pre-EMI) |
Foreclosure Charges |
0 to 17 EMI(s) fully paid |
7% of the Principal Outstanding |
18 to 23 EMI(s) fully paid |
5% of the Principal Outstanding |
24 to 35 EMI(s) fully paid |
3% of the Principal Outstanding |
36 or more EMI(s) fully paid |
2% of the Principal Outstanding** |
*Terms and Conditions apply
Note: **No foreclosure charges to be levied on loan classified as Micro Finance Loans
Understanding how the interest rate of a business loan is calculated can help you make smarter and more informed borrowing decisions. This rate is influenced by several factors such as credit score, the loan amount, business income, existing debts, and so on. In the next section, we’ll explore these factors in greater detail.
You can use a business loan EMI calculator to understand the impact of the interest rate on your monthly outgo – simply enter your desired loan amount, the loan tenure, and the estimated interest rate. You can also experiment with different interest rates, amounts, and tenures to understand how each variable affects your monthly EMIs.
You must take a look at the following factors which affect the business loan interest rates:
You can ensure getting a business loan minimum interest rate by following these tips:
Take the next step in growing your enterprise with a business loan from SMFG India Credit. Whether it’s for expansion, purchasing new equipment, or managing day-to-day operations, our loans are tailored to suit your specific business needs. You can use our business loan EMI calculator to estimate your monthly repayments, and our business loan eligibility calculator to assess how much loan amount you may be eligible for. To help you prepare, we also provide a detailed list of the required business loan documents. Start your application today and move your business forward with confidence.
With the rustic flair of desi music and subtly infused humour, this video tells a story of a small retailer who was able to grow his small business with a loan. Watch now and enjoy!
* Please note that loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms and disbursal process will be subject to SMFG India Credit's policy at the time of loan application. If you are an existing customer and wish to foreclose your loan, please note that foreclosure terms and charges will be applicable as per our policy at the time of loan foreclosure.
Use our business loan EMI calculator to estimate the EMI of your loan.
* Please note that loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms and disbursal process will be subject to SMFG India Credit's policy at the time of loan application. If you are an existing customer and wish to foreclose your loan, please note that foreclosure terms and charges will be applicable as per our policy at the time of loan foreclosure.
Disclaimer : The above calculator with graph & below table provide an approximate calculation of the EMI ( Equ... Read More
The processing fee that you pay for a business loan is anywhere up to 5% of the total loan amount + GST. Here are a few of the additional charges for an SMFG India Credit business loan:
The interest rate of a business loan at SMFG India Credit is determined based on several factors like your credit profile, business turnover, loan amount, and so on. After reviewing your application and documents, we offer a personalised rate tailored to your financial profile and business requirements.
The interest rate of a business loan is fixed, meaning it remains constant throughout the loan tenure. Borrowers can plan their finances more accurately as the EMIs remain unchanged, providing stability in repayment.
The APR (Annual Percentage Rate) may include processing fees and other applicable charges. Please refer to our Loan charges page for more details, or feel free to reach out to us.
Interest rates can vary depending on factors such as the loan amount, repayment tenure, and your business’s financial profile. Each loan is tailored to fit your specific requirements and eligibility.
Yes. A higher credit score can help you secure a more competitive interest rate, while a lower score may result in higher rates or stricter repayment terms.
Depending on lender policies, startups or newly established businesses may be offered higher interest rates due to limited credit history or higher perceived risk. Please note that to qualify for an SMFG India Credit business loan, your enterprise should have been operating for at least 3 years, with a record of stable income and profits for the last 2 years.
Shorter loan tenures often come with lower interest rates but higher monthly EMIs. The ideal tenure depends on your business’s cash flow, repayment ability, and long-term financial planning. Our team can help you find the most suitable repayment tenure.
Yes, interest rates may be negotiable based on your credit profile, business performance, and loan amount. Our team will work to offer the most competitive rate suitable for your financials.
Several factors affect the business loan interest rate, including your good credit score, the business's financial health, the loan amount, the loan tenure, the market conditions, and the type of loan.
To calculate your business loan interest, you can use the formula: Interest Amount = (Principal Amount x Interest Rate x Loan Tenure) / 100. Alternatively, you can use an online business loan EMI calculator provided by SMFG India Credit.
A bounce charge is a penalty applied if your EMI payment fails due to insufficient funds or transaction issues. It’s important to maintain sufficient balance before the due date.
The minimum business loan tenor you can get is 12 months. And the maximum business loan tenor you can get is 60 months. SMFG India Credit’s secured business loans (which are usually secured against property) have a repayment tenure between 12 to 180 months.
There is a foreclosure charge of 7% if you foreclose the loan between 7-17 fully paid EMIs, 5% charge between 18 and 23 fully paid EMIs, and 3% charge between 24 and 35 fully paid EMIs.
Here are some articles which could help you understand us and our products better.
View AllWhat is a Bill of Exchange: Learn About Its Features, Types, and How It Works
A bill of exchange is a powerful financial instrument used in business transactions to…
Top Business Ideas Under 10 Lakhs in India
Finding the right business idea that fits your passion, skills, and budget is a crucial step in…
Top 10 Manufacturing Business Ideas for Small Business Entrepreneurs in 2025
As India enters a new phase of economic growth and innovation, manufacturing continues to be a…
Business Ideas in Punjab
Punjab is steadily emerging as a promising hub for entrepreneurs, supported by a strong…
15 Best Business Ideas in Mumbai
Mumbai is not just seen as the financial capital of India; it has now emerged as one of the…
10 Common Reasons for Business Loss and How to Overcome Them
Running a business in India is both rewarding and demanding. While the entrepreneurial spirit is…
Have a query? You can contact us through any of the channels listed below.