Unique Business Loan variants | Up to ₹ 1 Core* | Tenure up to 60 months
All business demands a considerable amount of capital for doing its day-to-day operations and investing. For that reason, business owners have to take to obtaining business loans for the needed funds. Businesses are served Business loans in different choices of loan providers. Traditional bank loans are the most common form of capital, however, obtaining a bank loan is not a straightforward process.
At Grahaan Capital, we make things easier and quicker by applying a simplified process to all our Business Loans, regardless of the size of the business. It is hard to beat our attractive term loan interest rates.
The interest rates & fees earned in a Business Loan is one of the most crucial considerations for those who are looking to borrow. Paying a high rate of interest does more than that, as you incur debt. What the Grahaan Capital Business loan solves, at the same time, is making it possible to avoid recognizing low-interest rates and fees.
The Grahaan Capital Business Loan has appealing interest rates since we recognize that affordability is a borrower's top concern. With a starting rate of 9.75%* p.a., it's one of the most appealing options available in the market. You can obtain competitive interest-rate business loans in India by simply applying to Grahaan Capital
Each lender has a different processing charge for business loans. The associated administrative business Loan fees must be paid whether you choose an online business Loan or any other kind. Our Business Loan processing fees minimum range from 2% to 3% of the loan amount plus taxes, so you can keep your expenses down and your savings at their best. Applying for a business loan with Grahaan Capital just requires you to pay these minimal Business Loan fees & costs.
Making a plan for your loan is essential to wise borrowing. You should be aware of the EMIs that you must pay. To make these computations easier, utilize our Business Loan EMI Calculator. This allows you to figure out how much interest you should pay based on the most recent business loan interest rates that are available to you.
Although business loan rates and charges might differ significantly based on the credit history of the loan applicant and the business itself, the following table will provide you with a general indication of what to expect:
| Particulars | Charges |
| Business Loan Interest Rates | 9.75% p.a onwards |
| Loan Amount | ₹1 Lakh to ₹1 Core |
| Loan Processing Fees | Minimum 2% plus applicable taxes |
| Lowest EMI per month | Starting from ₹2,112* per Lakh for 60 months |
| Loan Tenure | 12 – 60 months |
| Prepayment/Foreclosure Charges | 0%* If paid from own sources & 4% If paid from other sources |
| Default Interest | Minimum 3% per month |
| Repayment Instrument Dishonor Charges | Upto Rs. 2500/ + GST (if applicable) per bounce |
| Stamp Duty | At actuals (as per state) |
| No Other Hidden Charges | |
Computing the interest for a Business Loan is one of the main factors that determines the amount of money a borrower pays back to a lender. However, the interest computation of a Business Loan is quite complicated; it becomes more complex if you deal with various loan types or lender types.
The interest is calculated as per the following formula:
E = [P x R x (1+R) N] / [(1+R) (N-1)]
Where,
○ P = Principal or the loan amount
○ R = Monthly interest rate (annual interest rate/12)
○ N = Number of monthly installments (loan tenure)
○ E = Equated monthly installment (EMI)
Before making a decision, it is crucial to conduct a thorough search and comparison of interest rates and repayment terms for Business Loans offered by various lenders. Moreover, Grahaan Capital provides a Business Loan EMI calculator that can assist you in determining the most favorable interest for your loan. By utilizing this tool, you can make well-informed decisions regarding your borrowing requirements.
There are two types of Business Loan interest rates, fixed and floating. Knowing all about these types is important as it helps you borrow smartly. Most business loan lenders offer a fixed interest rate. Let’s understand the difference between the two.
Fixed Interest Rate
A fixed-rate business loan is a good option for you if you avoid taking on any financial risks and value stability. This is because the interest the interest rate stays constant throughout the term of the loan. A fixed-rate loan’s primary drawback is its somewhat higher cost in comparison to a loan with a floating interest rate. Under this situation, a fixed-rate business Loan will remain unaffected even if policy changes cause the interest rate to decrease. This means that the borrower will have to pay the same monthly payment with the predetermined amount.
Floating Interest Rate
Floating interest rate changes based on the financial market. Since the interest rate can go up or down, this is better for people who don’t mind taking on some risk. Your total interest payment will be significantly lower if the policy changes are favorable to you as the customer. As a result, the interest rate is reduced. You never know, though, and you can end up with a higher interest rate than you signed up for if the policy changes are not advantageous to you as the consumer.
| Fixed interest rate | Floating interest rate |
| Interest rates remain constant | Interest rate can change depending on the fluctuation in the market |
| Your EMI payable will remain the same throughout the re-payment tenure | Your EMI payable is likely to change during the re-payment tenure. |
| You are likely to be charged a pre-payment charge if you prepay your loan | You may not be charged a pre-payment charge if you prepay your loan |
Multiple factors can influence the interest rate and fees tied to a Business Loan. Discover some of the main factors affecting Business Loan interest rates.
Credit Score: One of the key things that determine the rate of interest for business loans is your creditworthiness. A credit score above 700 falls into the high category and you will have a better chance of getting a low rate on the Business Loan is the cause of a low interest rate.
Business History & Vintage: Besides, lenders will keep in mind the time your business has been in operation and how successful it was in the past. If you can show your business history of profitability and growth you can borrow a Business Loan at a low-interest rate.
Industry: Different sectors may have a different systematic risk, which is factored in when setting the interest rate.
Loan Amount & Terms: The loan amount and the loan repayment term may have an impact on the rate of interest and the charges. You can now use the Grahaan Capital Business Loan EMI Calculator to assess your loan amount, EMI, interest rate, and loan tenure.
Market Conditions: Apart from market conditions, interest rates are also affected by the variable. In floating rate situations, the interest fluctuates parallel to the market’s movements. Eventually, many aspects may influence the rate of interest and the fees of business loans. Hence, it’s crucial to comprehend these features and attempt to enhance your credit rating and business track record to receive the most favorable loan terms.
Repaying a Business Loan in advance can result in significant savings on interest payments. Nevertheless, it is crucial to consider several factors before opting for early repayment. Here are some guidelines for effectively prepaying a Business Loan:
Check for any prepayment penalties which are applicable.
Foreclosure is the act of paying off the loan amount before the loan term ends. It is important for business owners to carefully consider the benefits and drawbacks of foreclosure before making a decision.
The table below outlines the advantages and disadvantages of foreclosing a loan for quick comparison.
| Pros | Cons |
| Saves on interest | Attracts a foreclosure charge |
| Reduces current liabilities | Exerts a strain on cash flow |
| Provides financial freedom | May result in loss of potential investment opportunities |
