Business Loan Interest Rates

SMFG India Credit's Business Loan Interest Rates

Borrowing for your business is always a positive step that can help you scale new heights in your business. Our customised business loan interest rates and fees are tailored to suit every customer as per his or her individual profile and requirement. Thus, no matter what your need is – working capital, purchase of new machinery, business expansion or debt consolidation, our affordable solutions will ensure that you meet your business loan requirements in the easiest and most convenient manner.

SMFG India Credit offers affordable Business Loans solutions. Upon receiving your application, you will firstly 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 business loan interest rates that can be offered to you.

Read on to know more about our business loan interest rates and other charges.

To know more, please feel free to get in touch with us through our customer care centre, or visit us at your nearest SMFG India Credit branch.

SMFG India Credit Business Loan Interest Rates

The below charges are indicative. Detailed break-up of charges will be part of the Loan documents.

Business Loans Fees & Charges

Here’s a table of Fees and Charges for SMFG India Credit Business Loans to help you understand the same in detail

*Terms and Conditions apply

How Can You Get Low Interest Rates on Your Business Loans?

You can ensure getting business loans at lower interest rates by following these tips:  

1. Aim for a high credit score by monitoring and addressing discrepancies in your credit report.
2. You must ensure consistent and punctual EMI payments to establish credibility and increase the likelihood of securing a business loan with a low-interest rate.
3. You should develop a detailed and comprehensive business plan outlining goals and strategies to demonstrate commitment to business success and favorable loan terms.
4. Enhance financial statements by focusing on turnover, projects, and overall stability to appeal to lenders for a lower interest rate.
5. Thoroughly compare loan offerings, explore refinancing options, and stay informed about market rates for effective negotiation.

Factors that Affect Business Loan Interest Rates

You must take a look at the following factors which affect the business loan interest rates:

• Your Creditworthiness
  Creditworthiness and repayment history have one of the highest impacts on business loan interest rates. Higher credit scores demonstrate greater reliability and a history of on-time payments. This can lead to lower interest rates. A lower credit score can signal higher risk to lenders, which leads to higher interest rates. It is important to maintain a good credit score to secure favourable credit terms.
• Business Revenue
  Lenders look at the business revenue to assess borrowers’ financial health and repayment capacity. The more consistent your revenue is, the more stable and profitable the business appears to be. Volatile revenues can make lenders uncertain about your ability to repay the loan, which can lead to higher business loan interest rates.
• Loan Amount
  The amount you borrow also affects the business loan interest rates. Larger loans may secure lower rates, given the increased income potential for the lender, while smaller loans may incur higher rates. However, it is important to borrow only the amount you need to avoid overstraining your finances.
• Repayment Tenure
  The duration of the loan greatly impacts interest rates on business loans. Longer tenures may offer lower rates, reducing the repayment pressure, while shorter terms may result in higher rates for quicker lender reimbursement.
• Collateral
  Secured loans, backed by collateral, are perceived as lower risk, often resulting in a lower interest rate of a business loan. In case of default, the lender can recover the asset. Unsecured loans typically have higher interest rates due to the increased risk to the lender.
• Business Reputation
  The overall reputation of your business can play a large role in determining the interest rate of a business loan. Businesses with a stronger market presence and a good reputation in their industry are generally seen as lower risk. This can come with more favourable business loan interest rates. However, newer businesses that do not have a pre-existing reputation may receive higher rates on business loans due to increased risk.
• Existing Loans
  If you have multiple existing loans, leading to a higher debt-to-income ratio, lenders may perceive a greater risk of loan default. This can lead to higher business loan interest rates.
• Existing Relationship With the Lender
  If you are an existing customer of a lending institution and have a strong repayment history, you have a good chance of getting preferential rates on business loans. It is advisable to get in touch with your lending institution to see if you can avail of lower business loan interest rates.

Business Loan EMI Calculator

Use our business loan EMI calculator to estimate the EMI of your loan.