Competitive Interest Rates

All businesses require adequate funds to cover operating expenses or for the expansion of the business. Thus, business owners choose Business Loans to get the funding they need. Businesses can select a Business Loan from a variety of loan vendor options. Traditional bank loans are the most popular source of money; yet, obtaining one is not a simple task.

With our simple approach and reasonable interest rates on Unsecured Business Loans, regardless of business size. Our term loan interest rates are among the most competitive in the industry.

One of the most significant elements to consider when borrowing is the interest rates and costs associated with a business loan. Paying high-interest rates increases your debt. Thus we help you to prevent this situation by providing reasonable Business Loan interest rates and fees.

Interest Rate, Fees & Charges

Interest Rate

Our Business Loan allows you to keep loan repayments affordable according to your budget. Depending on your credit score, financial situation, experience, etc. You can get an interest rate as low as 15% p.a. allowing business owners to access more cash at a lower cost.

Processing fees

Mangalam Industrial Finance Limited Business Loan carries a one-time processing fee of up to 3%, plus applicable taxes. This is applicable to the payout amount and is levied as a service fee for loan processing.

Prepayment costs

Prepaying a Business Loan is an efficient way to avoid paying additional interest, lowering overall expenditures. You can prepay your Mangalam Industrial Finance Limited Business Loan whenever you choose, and there are no fees to pay for it. This is because we charge no prepayment fees on our Business Loan when paid with your funds. If the payment is made from another source, 4% prepayment or foreclosure charges will apply. This allows you to maximise your savings while focusing on your business.

Delayed Payment Fees

Defaulting on loan EMIs involves a penalty, and penalty charges are listed below: Penal interest is assessed at 3% per month on the in-default EMI amount. If a cheque bounces, there will be a ₹1,000 fee, plus any taxes.

Business Loan Interest Rate Calculator

Interest Rate

The rate of interest begins at 15% per annum. A one-time processing fee equal to 3% of the sanction amount plus relevant taxes.

Repayment

Flexible repayment terms range from 6 months to 48 months, with no prepayment penalties.

Example

A loan of ₹15 lakh with a 15% interest rate and a four-year tenure would result in an EMI of ₹41,746 a month.
*This interest rate is subject to fluctuation based on our internal credit and risk policy.
*T&C Apply

How the Business Loan is Calculated?

Here's the formula for calculating the interest:
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 instalments (loan tenure)
Before making a selection, look into and compare Business Loan interest rates and repayment terms from several lenders. Additionally, you may use the Mangalam Industrial Finance Limited Business Loan EMI calculator to calculate the interest rate for your loan and make informed borrowing decisions.

Business Loan – Schedule of Charges & Other Features

Business Loan Interest Rates 15% p.a onwards
Loan Amount ₹1 Lakh to ₹50 Lakhs
Loan Processing fees Up to 3% plus applicable taxes
Lowest EMI per month Starting from ₹2,783* per Lakh for 48 months
Loan Tenure 6 - 48 months
Prepayment/Foreclosure Charges 0%* If paid from own sources & 4% If paid from other sources
Default Interest 3% per month
Repayment Instrument Dishonor Charges ₹1,000 per bounce plus applicable taxes
Stamp Duty At actuals (as per state)
No Other Hidden Charges

Factors Affecting Business Loan Fees and Expenses

When it comes to securing a business loan, various factors might influence the interest rate and fees. Check out some of the main factors that influence business loan interest rates:

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Credit Score
...
Business History & Vintage
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Industry
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Loan Amount and Terms
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Market Conditions

Credit Score: One of the most essential variables influencing Business Loan interest rates is your credit score. A credit score of above 750 is regarded as outstanding and can help you secure a cheaper interest rate on your business loan. This results in a lower interest rate.

Business History & Vintage: The lenders will consider your company's history as well as the number of years in operation. If you have a proven track record of profitability and growth, you can easily obtain a low-interest business loan.

Industry: Varied industries have varied risk profiles, which are considered when interest rates are determined.

Market Conditions: Market conditions may additionally have an impact on interest rates, particularly if they are variable. Variable interest rates change in response to current market movements. Overall, several factors can influence business loan interest rates and fees. As a result, understanding these characteristics and working to enhance your credit score and business history is critical for obtaining the best loan conditions possible.

Types of Business Loan Interest Rates

Fixed Interest Rate:

Fixed interest rates remain fixed throughout the loan tenure. The borrower has to pay the same EMI amount every month. Further, fixed interest rates are more trustworthy in the long run because you can be confident that the rate will not fluctuate during the loan term. It also makes it easier to calculate your monthly EMI. So, if you're looking for the best Business Loans at cheap interest rates, apply today with Mangalam Industrial Finance Limited.

Variable Interest Rate:

Floating interest rates might alter depending on market conditions, therefore the loan EMI amount to be paid each month may vary. Because the rate varies according to current trends, this form of interest rate can have an impact on your loan repayment capabilities if your organisation is relatively new. However, floating interest rates can be low, lowering your EMI even further. To discover the best Business Loan offer with reasonable interest rates, apply Mangalam Industrial Finance Limited Business Loan today.

How to Prepay a Business Loan to Lower Interest Rates and Charges

Prepayment of a Business Loan might save you a significant amount of money in loan interest payments. Still, before deciding to prepay your debt, you should consider a variety of factors. Check out these tips to successfully prepay a business loan:

  • Find the best timing for loan repayment using estimated cash flow calculations.
  • Avoid making prepayments during the slower months of the economic cycle.
  • Before making a prepayment, review the repayment schedule.
  • Check for any applicable prepayment penalties.

The Benefits and Risks of Prepayment of a Business Loan

Foreclosure is the prepayment of a loan amount before the end of the loan term. However, foreclosure is not always a wise move, and business owners should be aware of the benefits and drawbacks of such actions.
Check out the table below for your convenience:

Benefits Risks
Saves on interest Exerts a strain on cash flow
Reduces current liabilities Attracts a foreclosure charge

Frequently Asked Questions

Yes. Prepaying the Mangalam Industrial Finance Limited Business Loan incurs a small cost. You simply need to pay 5% of the outstanding principal, plus applicable taxes. But there are no foreclosure or prepayment fees if paid from your sources.

Loan foreclosure is when debtors prepay their full debt in a single payment before the end of the term. Foreclosing a loan as a business owner can be a wise decision if you have the necessary funds. It enables you to save on interest payments and become debt-free.

At Mangalam Industrial Finance Limited, the maximum duration for a Business Loan is four years. As a result, you have the freedom to repay your loan based on the cash flow of your firm.

Obtaining a competitive business loan interest rate in India is not an easy effort, but it can be simplified if a person meets the eligibility requirements for a business loan. The criteria are listed below:

  • Age must be between 24 and 65 (during loan application)
  • The applicant must have a running business of at least two years
  • Businesses must have a minimum yearly turnover of ₹6 lakh Have a great credit score

Yes. When you pay the processing fee, make prepayments, or pay the penalty for defaulting on EMIs, you will be charged additional taxes.

No. Mangalam Industrial Finance Limited charges 0% for foreclosure or prepayment if paid with own funds.

Financing institutions primarily evaluate some common characteristics, such as the borrower's age, credit score, business revenue, residence location, outstanding liabilities, and so on when calculating the Business Loan interest rate in India.

*Terms & Conditions Apply

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