Business Loan - Everything You Should Know About Bajaj Finserv Business Loan - Finserv Markets

Business Loan – Everything You Should Know About Bajaj Finserv Business Loan – Finserv Markets

Business Loan Online There is no better feeling in the world than being independent and being your own boss. However, a business is much more than just being your own boss. You need to plan for its initial success, growth, prosperity, and expansion. Sometimes, it may happen that your dream to take your business to new heights is restricted, simply due to lack of funds. We, at Finserv MARKETS, will ensure that this never happens. Our team of business loan experts works round the clock to ensure we provide you with every possible financial assistance to help you build your business and achieve your dreams.

Whether you are a self-employed professional such as a Chartered Accountant (CA), engineer, lawyer, writer, or any other businessperson embarking on an entrepreneurial journey, you can safely rely on us for custom-made business loans to help you achieve your goals. You can enjoy loans of up to INR 15 lakh backed by online processing and easy repayment facilities. Whether your business is small or large scale, business loans by Finserv MARKETS have been built to cater to all your needs.

Additional Features of Business Loan form Finserv MARKETS Business Loan available on Finserv MARKETS comes with features like ’principal holiday’, unlimited withdrawals, and flexible part payments bring in additional advantages to let you focus on your business while we take care of the rest.

Key features of a Business Loan include: 

Interest-only EMI As an exclusive benefit, you only pay the interest amount as the EMI during the initial period of your Business Loan.

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Flexible Repayment Options You have complete flexibility and control on how you want to repay your principal amount. You can also log on to the customer portal and choose to make part-payments.

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Unlimited Withdrawals In the Business Loan plan, you can withdraw without limit for, as many times as you need basis your business requirements.

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No Additional Charges There are no hidden/additional charges if you choose to make part-payments of your principal amount.

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No Repeated Form Filling We understand how cumbersome it is to fill up an application form each time you require money. Hence, we have eliminated that process for you. You need not fill any forms every time you have a loan requirement. Simply log in to the customer portal and withdraw money online from your loan limit.

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What are the interest rates and charges involved?

Parameters

Interest Rates and Charges

Interest rate

18% p.a. onwards

Processing fees

Up to 3% of the loan amount

Foreclosure charges

4% of the outstanding loan amount + applicable taxes

Annual maintenance charges

N.A.

Convenience fees

INR 4,499

Bounce charges

INR 3,000 per bounce + Applicable taxes

Penalty interest

2% per month on overdue EMI + applicable taxes

Outstation collection charges

INR 65 + applicable taxes

Part-prepayment charges

2% on part-payment amount + applicable taxes

Stamp Duty charges

Percentage/amount to be mentioned state-wise

Finserv MARKETS is brought to you by the house of Bajaj in partnership with Bajaj Finance Ltd. and Bajaj Housing Finance Ltd.

Business Loan EMI Calculator - Overview We at Finserv MARKETS understand the various struggles business owners go through to get set-up business, manage its day-to-day functioning and enable it to grow. However, setting up a new office, training your staff, purchasing new equipment, or installing new software, definitely requires financial assistance. Business loans from Finserv MARKETS are just the right product to help you grow your business.

For small and medium enterprises or start-ups, not having cash at hand (liquid cash) when needed, can be stumbling block when it comes to business progress. This is where a business loan helps. It's you to finance high-end investments while ensuring zero burdens on your working capital arrangements.

Now that you have decided to opt for a business loan, you need to plan for repayment (EMIs) and other monthly business commitments in advance. The aim is to pay the EMIs on time without defaulting. To ensure this, you need to know the exact monthly outflow of your EMI amount. The Business Loan EMI Calculator by Finserv MARKETS is the quickest way to know this.

An EMI consists of two components. One is dedicated towards the principal repayment, while other is directed towards the interest. During the initial years, the interest component of the loan is higher.

However, once you move towards the end of the tenure, the interest component becomes less and the principal repayment amount increases.

The ‘Business Loan EMI Calculator’ is an online tool by Finserv MARKETS, which asks you to provide certain inputs so that the built-in calculator can give you the exact amount you will need to shell out every month for repaying the loan. The three important inputs are: 

Loan amount This is the principal amount of loan that you wish to avail from us.

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Rate of interest This is the interest rate, which is required to be paid. The rate of interest is the cost that is paid on this loan. You can enter the interest rate on the business loan as mutually agreed upon with us.

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Loan tenure The next input is the loan tenure or loan duration. This is the total term, throughout which the loan is repaid.

The inputs are taken on a sliding scale, which allows you to change the values according to your preference. The amount of EMI is calculated with just a click. Whenever you change the inputs, the EMI result changes accordingly.

How is the business loan EMI calculated?

Let us say you have borrowed INR 25 lakh as a business loan from a bank at the rate of 18% for a period of 10 years or 120 months.

Loan amount Tenor Rate of interest The formula used is: E = P * r * (1+r)^n / ((1+r)^n-1) Where ‘E’ is EMI ‘P’ is the Principal Loan Amount ‘r' is the rate of interest calculated on a monthly basis ‘n’ is the tenor or duration of the loan Your EMI as per the formula would be: INR 25 lakh*0.010*(1+0.015)^120/((1+0.015)^120-1))= INR 49,308 per month. In a span of 120 months, you will end up paying INR 47,33,574. Out of this, INR 22,33,574 will be towards the interest.

How to use the ‘Business Loan EMI Calculator’

Calculating the Business Loan EMI is really a simple process. You need to click on the ‘Business Loan Calculator’ on the Finserv MARKETS website. After that, all you need to do is to input the loan amount, rate of interest, and loan tenure to get the required information. You will instantly get the amount of EMI that you need to pay for the business loan according to those inputs.

What are the benefits of a ‘Business Loan EMI Calculator’?

A Business Loan EMI Calculator helps you gauge the monthly amount that you would be required to keep aside for a business loan. Maintaining the cash flow cycle of the business and ensuring sufficient liquidity to meet contingent expenses is of utmost importance. Once you are sure that you can meet the EMI payments regularly, you will be able to enter into an agreement with us. You can also negotiate on the rate of interest or the tenure of the loan so that you can avail of an EMI that can be easily managed by you.

We at Finserv MARKETS understand the various struggles business owners go through to get set-up business, manage its day-to-day functioning and enable it to grow. However, setting up a new office, training your staff, purchasing new equipment, or installing new software, definitely requires financial assistance. Business loans from Finserv MARKETS are just the right product to help you grow your business.

For small and medium enterprises or start-ups, not having cash at hand (liquid cash) when needed, can be stumbling block when it comes to business progress. This is where a business loan helps. It’s you to finance high-end investments while ensuring zero burdens on your working capital arrangements.

Now that you have decided to opt for a business loan, you need to plan for repayment (EMIs) and other monthly business commitments in advance. The aim is to pay the EMIs on time without defaulting. To ensure this, you need to know the exact monthly outflow of your EMI amount. The Business Loan EMI Calculator by Finserv MARKETS is the quickest way to know this.

Business Loan Eligibility Calculator We understand that your business is invaluable to you and to that end, you would do whatever it takes to ensure its growth, continuity and competitiveness. This would mean a cash influx that is required at a vital time to be able to take things to the next level.

This is where Finserv MARKETS Business Loan can make all the difference. With varied loan amount options, a super fast approval process, and flexible repayment options, we’ve got you covered. We constantly thrive to ensure that there is absolutely nothing that stands in the way you do your business! The Business Loan Eligibility Calculator is an efficient feature that provides you with instant information on the loan amount that you are eligible for.

Summary - Business Loan Eligibility Calculator Finserv MARKETS ensures that the entire process of availing a business loan is easy, convenient, hasslefree. It does not take up your time or effort by unnecessarily bogging you down with tedious paperwork

and other old-school formalities. The business loan eligibility calculator gives you a quick calculation of the amount that you are eligible for. Once you apply, your application can be approved within 3 minutes and the amount can be credited to your bank account within 24 hours.

The entire process is completely online, and this ensures that there are no pesky agents or office hours to manoeuvre around for you to get what you need. We’re always open and always online so you can get what you need, whenever you need it!

Business Loan Interest Rates and Processing Fees Whether your business falls into the category of an SME or a large-scale enterprise, it’s essential that the organisation functions smoothly to achieve its business goals and objectives. All kinds of businesses at some point of time require financing for initiating new ventures, business expansion and for achieving other purposes. Hence, there are a plethora of business loan options available to customers in India. You simply cannot allow a shortage of funds to impede the growth of your company; which is why business loans are there to provide the much-needed financial cushion.

Depending on your financial needs, you can choose the appropriate plan that perfectly fits your needs and requirements. The availability of various types of plans further augments your chances of finding the perfect financing option. Plus, more competition between business loan providers spells better interest rates for you.

There are two types of interest rates viz. Flat Rate of Interest and Diminishing Rate of Interest. The following sections will explain these concepts in detail.

What do you mean by diminishing or reducing rate of interest?

This simply translates as the calculated monthly interest rate on the remaining loan amount. Your loan repayment will comprise, both the principal and the interest amount that must be completely paid off.

As monthly EMI payments are made, the principal amount reduces. Thus, the interest levied for the subsequent month will only be on the outstanding amount and not the original loan sum. The formula for calculating your reducing rate of interest is: Interest Payable per Payment = Interest Rate per Payment*Remaining Loan Amount.

Let’s take an example: Suppose that you have taken a loan for Rs. 1, 00,000 with a reducing interest rate of 10% per annum over a period of 5 years, then your EMI amount would decrease with each passing month. For the first year, you’ll pay an interest amount of Rs. 80,000 and for the subsequent year it will reduce by Rs. 8,000 on the diminished principal amount of Rs. 80,000 and so forth, until the entire loan is repaid. There will be a progressive reduction in the interest as you continue making timely EMI payments.

What is flat rate of interest?

This means the interest rate will be calculated on your total loan amount regardless of the ongoing monthly EMI payments being made. Thus, the nominal flat-rate is significantly lower than the effective interest rate. The calculation formula for flat interest rate is: Interest Payable per Payment = (Original Loan Amount*No. of Years* Interest Rate p.a.) / Number of Payments.

For example, if your loan amount equals to Rs. 1, 00,000 with a flat interest rate of 10% p.a. for a period of 5 years, then you’ll have to pay Rs. 20,000 as the principal repayment for the amount of: (1, 00,000/ 5) + Rs. 10,000 - interest of 10% on 1, 00,000 equals to a sum total of Rs. 30,000 progressively over the years or approximately Rs. 2,500 each month.

What are the primary factors that determine business loans interest rates?

Credit Score: A good credit score will make it easy for you to obtain a business loan. Hence, maintaining a high credit score by repaying your debts in a timely manner is absolutely essential.

Time in Business: Regardless of the type of your business, it should be in operation for a minimum of two years. Generally speaking, older businesses have higher chances of getting a business loan.

Monthly Revenue: Regular and consistent income has a strong bearing on the repayment capability of the customer. Your bank will analyse the daily average balance before deciding your business loan interest rate.

Collateral: This means the security pledged by the borrower for availing their business loans. The higher the value of the secured asset, the greater the chances of obtaining a huge sum of money as the loan amount. There are various types of collaterals viz. home equity, deposits, equipment and investment real estate.

Lastly, what are the important things to compare before I apply for my business loan?

Monthly EMIs: The monthly repayment amount will be decided on the basis of your income and past debt repayment records. The determining factors of your EMI would be the loan amount, interest rate percentage and tenure. Making timely payments will positively affect your CIBIL score.

Processing Fees: This is a onetime payment that will be charged by your lender or financial institution to process the loan amount. All institutions in India require customers to pay processing fees for obtaining their business loans.

Prepayment Charge: It will be levied if you repay the loan before time. This charge differs across different institutions and is one of the important factors that applicants should consider.

Finserv MARKETS brings to you tailor-made business loans to customers and ask for minimal documentation. Visit our website today if you’re seeking the perfect business loan deals. The online application process further renders things hassle-free.

Benefits of Taking a Business Loan It’s is a known fact that a business cannot thrive or stay competitive without adequate financial support.

Right from its conception / initiation to growth and maturity, capital is required at every step an organization’s journey. While you can definitely consider raising funds from venture capitalists or dig into your business reserves, business loans still remain a popular and convenient option to infuse capital into your business.

A business loan is easy to avail and repay. Let’s take a look into the benefits of business loan: 1. Simple and easy to avail You no longer need to hold back on your business idea for months waiting for the desired loan to be sanctioned. Availing a business loan today is quite easy, fast, convenient and hassle-free.

All you have to do is, fill in an online application form with your basic personal and business details, along with your loan preferences like amount and repayment tenure.

At Finserv Markets, you can expect your loan application to be approved within 3 minutes with money credited to your bank within 24 hours of approval. Moreover, you can access all your loan documents and statements anytime, anywhere through our online customer portal.

2. Flexible repayment facility A business might take considerable time to generate revenue. However, while you avail a business loan, you need not worry about paying back the amount in a hurry. Through the various flexible repayment options, you can choose a tenure between 12 to 60 months and repay your loan basis your revenue cycle and convenience. With Finserv Markets, you can go one step ahead and avail a hybrid flexi business loan. The best part about a “Hybrid Flexi Business Loan” is its flexi repayment facility. You can repay the loan amount in part payments without any additional charges/fees. You can withdraw as much amount as you need from your loan limit and pay only the interest component as EMIs during the initial period of the loan. You can know more about this loan here at Finserv Markets Business Loan .

3. Collateral Free Financing Once you fulfill the easy eligibility criteria and submit the required documentation, you can easily avail a business loan at Finserv Markets without any collateral.

4. High-value loan While you aim to take your business to new heights, you must ensure that you have adequate capital to support your vision and make it a reality. A high value loan can help you achieve the same. You can avail a business loan of up to Rs. 25 lakh with Finserv Markets at highly competitive interest rates.

A simple illustration to show the benefits of Hybrid Flexi Business Loans from Finserv Markets: Mr. A requires a business loan of INR 10 Lakh for purchasing a new piece of equipment that will help him reduce the overall production costs

Amount Required: INR 10 Lakhs Interest Rate: Assuming 19% per annum Tenure: 60 months The total monthly EMI in a standard plan would be INR 25,545 but with Hybrid Flexi Business Loans, the same would translate a monthly EMI of INR 14,575 with an option to make part payments of the principal based on your convenience. Please be sure to review the terms and conditions and repayment schedule for complete information.

Among the various requisites of a successful business, adequate capital is the most important of all.

While you are focusing on other intricate arrangements for your business launch, a business loan can take care of your financial needs. Watch your business flourish with a Bajaj Finserv Business Loan from Finserv Markets.

“Finserv Markets, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”