Business Loan Interest Rate

Borrowing money for your business can be a strategic decision to accelerate growth and expansion. At FlexiLoans, our collateral-free business loan interest rates are tailored to each borrower’s profile, ensuring affordability without compromising flexibility.

Whether you need funds for working capital, equipment purchase, business expansion, or debt consolidation, our competitive rates make it easier to meet your obligations while focusing on growth.

Collateral-free business loans with interest rates starting from 1% per month.100% online process.

What Is a Business Loan Interest Rate?

A business loan interest rate is the cost you pay to borrow money for your business, expressed as a percentage of the loan amount. Your eligibility, credit profile, business performance, and loan tenure determine this rate.

At FlexiLoans, our rates are transparent and customised, so whether you need working capital, want to purchase equipment, or plan an expansion, you know exactly what you’ll pay.

Types of Business Loan Interest Rates

The business loan interest rate you get depends on the loan amount, tenure, and your eligibility profile. In general, there are two main types:

Fixed Rate of Interest

• The interest rate is calculated on the entire principal for the whole tenure, without considering that your EMIs reduce the outstanding principal over time.
• While the flat rate may appear lower, the effective cost of borrowing is usually higher than the nominal flat rate.

• Lenders determine fixed rates based on a borrower's credit profile, repayment history, financial stability, and prevailing market conditions.

Reducing or Diminishing Balance Rate

• Interest is charged only on the outstanding principal balance each month.
• As you repay, the interest portion decreases, and a larger share of your EMI is allocated towards principal repayment.
• This method typically yields lower total interest payments compared to fixed rates, especially for long-term loans.

Current Business Loan Interest Rates in India

FlexiLoans offers competitive business loan interest rates comparable to those of leading lenders.
Your final rate depends on:

• Loan eligibility and turnover.
• Industry and business performance.
• Credit score and repayment history.

We ensure 100% transparency, no hidden charges for processing, pre-closure, or missed EMI penalties.

• Per Month's EMI

This consideration takes into account not just current circumstances but also previous financial stability histories in determining the right to pay a per-month EMI. If you have a clear financial history, you will be able to determine the business loan interest rates and terms while applying for a new loan. Be sure you're paying your EMI with extra money that won't interfere with your daily needs.

• Processing Fee

This is a one-time deposit paid to get the loan balance processed. It's the equivalent of the service costs on top of the original price. This is non-refundable, and there will be no tax paid on it. This fee is inevitable no matter what kind of loan you're applying for.

• Prepayment

If there is an opportunity to pay off the loan early before the end of the term, you will do so with additional prepayment fees. FlexiLoans calculates this based on the remaining balance to determine service costs and other factors.

A business loan allows you to expedite the path to your goal. Money can never be a barrier to starting a company in this day and age, where there are so many opportunities like FlexiLoans, which gives the best business loan rates in India.

Factors Determining the Rate of Interest on a Business Loan

• Company History

The length of operation is critical in deciding if the business is approved for a business loan and the interest rate charged. The longer an enterprise has been in operation, the greater its chances are of obtaining business loans at the most favorable interest rates. Typically, the lender divides the debt into two categories: priority and non-priority. Non-priority sector loans have a higher interest rate than priority sector loans. As a result, the nature of your company affects the interest rate on your business loan as well.

• Credit/CIBIL Score

Credit and CIBIL scores determine your creditworthiness. If you've ever taken out a loan and paid it back on time, or even if you pay your credit card payments on time, you'll get a decent credit score. Additionally, having a positive credit score would work to your advantage when applying for a loan. A strong credit score entitles you to other benefits, such as the best business loan interest rates and much more flexible loan terms.

• Flow of Cash

Your company's monthly revenue determines whether it is profitable or losing money. In short, it continues to play a significant role in deciding your business loan eligibility. At intervals, the turnover rate fluctuates. However, accuracy is critical since it assists the lender in determining the loan duration and repayment terms.

• Business experience

Although many lenders in India provide business loans to start-ups, including businesses with little experience, overall interest rates are typically higher on these loans. If you've been in the very same industry for many years, the investor will see this as a good indication and will give you a better price than if you were starting a new company.

• Type of Business

Not only does industry knowledge matter, but also the form of business. This is because some companies are can be riskier than others. If you engage in one of these risky businesses, you will be forced to pay a higher interest rate on your business loan.

• Business strategy

If you're starting a new company, you'll still need to provide the lender with a clear business strategy and specifics on how you want to use the loan funds. Without a clear and thoughtful plan, the lender will accept the loan but charge a higher interest rate.

• Collateral

The majority of business loans need collateral. The more collateral provided, the smaller the bank's risk and, thus, the lower the interest rate. Collateral is the security that most lenders need as a condition of providing business loans. Collateral is any commodity that the company owner owns that has a nominal value. Although some businessmen are eager to have collateral, others are unable to do so. It also has an impact on the interest rate on business loans.

Basic Eligibility Criteria

FlexiLoans has simplified its eligibility conditions to the bare minimum to expedite the processing of business loans. We don't ask for a lot of documentation or papers that can slow down the loan approval process.

• You must be 21 years of age when applying for the loan and not more than 65.
• Business loans are available to individual corporations, sole proprietors, and private companies involved in trading, production, or services.
• The applicant must have worked in the industry for three years and have at least five years of experience.
• offers business loans to those businesses that have been running for at least a year and have monthly total sales of at least $2 million.
• If the company has been in business for more than three years, you can apply for a business loan.
• We would also ensure that there are no errors in previous accounts and, as such, the company is tax compliant.

How to Apply for a Business Loan?

Applying for a business loan is now fast, entirely online, and hassle-free. At FlexiLoans, you can secure funds without collateral in just a few simple steps.

What you’ll need before you start:

• Soft copies of the required documents.

• A stable internet connection.

• A good credit score (higher scores may qualify for better interest rates).

Step-by-Step Process:

1. Online Application
   Visit the FlexiLoans website and provide your accurate business and personal details. This helps us determine your loan eligibility and the suitable business loan interest rate.

2. Upload Required Documents
   Submit scanned copies of your KYC documents, recent current account bank statements, and business registration proof through our secure portal.

3. Credit & Business Assessment
   Our team reviews your credit history, cash flow, and business performance to finalise the loan offer. You’ll receive a clear breakdown of the approved amount, interest rate, and repayment terms.

4. Quick Loan Disbursement
   Once you accept the offer and sign the loan agreement, the funds are typically credited to your account within 48-72 hours.

Tip: Submitting complete and up-to-date documents can speed up the approval process and help secure the most competitive rates.

Documents Required for Business Loan

Collateral-free | 48-hour approval | 100% online process

Frequently asked questions