What Is The Current Business Loan Interest Rate In India?
What is the Current Business Loan Interest Rate in India?
In India, the business loan interest rate depends on multiple factors such as the amount of loan, the period of repayment, the credit score of the applicant, and the type of lender. Generally, the interest rate for business loans ranges from 8% to 20%.
Types of Business Loans
In India, there are two types of business loans: secured and unsecured. Secured business loans are those that are backed by collateral such as property or equity, while unsecured business loans do not require any security. As such, secured business loans typically have lower interest rates.
Factors Affecting Business Loan Interest Rates in India
The interest rate on business loans in India is determined by several factors. These include:
- The amount of loan: The higher the loan amount, the higher the interest rate.
- The period of repayment: Generally, shorter repayment periods attract lower interest rates.
- The credit score of the applicant: Applicants with higher credit scores are likely to get lower interest rates.
- Type of lender: Banks usually offer lower interest rates than NBFCs and online lenders.
Average Business Loan Interest Rate in India
The average business loan interest rate in India is around 15%. However, this can vary depending on the factors mentioned above. Banks typically offer lower interest rates than NBFCs and online lenders.
Conclusion
In India, the business loan interest rate depends on multiple factors such as the amount of loan, the period of repayment, the credit score of the applicant, and the type of lender. Generally, the interest rate for business loans ranges from 8% to 20%. Banks typically offer lower interest rates than NBFCs and online lenders. The average business loan interest rate in India is around 15%.
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