2 weeks ago

How to Choose a Business Loan Rate and Tenure

Choosing a business loan is not only about getting money quickly.

The interest rate affects how much extra money the business pays to the lender.

The tenure is the length of time given to repay the loan.

A longer tenure can make each monthly payment smaller.

However, it may increase the total interest paid.

A shorter tenure can cost less interest but may require larger monthly payments.

Lenders may check the business's credit history, performance and existing debts.

Business owners should compare the EMI, total interest and fees before choosing a loan.

Bajaj Finance is described as offering online, collateral-free business loans with different amounts and repayment periods.

Key facts

Illustrative loan: Rs. 20 lakh with a five-year repayment period.
Loan amount offered by Bajaj Finance: Rs. 2 lakh to Rs. 80 lakh.
Bajaj Finance repayment tenure: 12 to 96 months.
Collateral: The described Bajaj Finance business loan does not require collateral.
Application process: An end-to-end online application process is described.
Factors lenders may assess: Credit history, repayment behaviour, business performance, business vintage, financial records, existing commitments, loan amount and tenure.
Tenure trade-off: Longer tenure may reduce EMI, while shorter tenure may reduce total interest payable.

thequint.com · 2 weeks ago