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Looking to expand your business? Want to give wings to your dream business venture? Planning to acquire a new business? Count on our easy and faster business loans that can help you take your dreams to newer heights. 

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Business Loan

 

My Mudra Business Loan Interest Rate & Charges


Interest rate

 

By using the My Mudra Fincorp Business Loan, you can keep your loan payments inexpensive and within your budget. You might acquire an interest rate ranging from 15% to 30% depending on criteria such as your credit score and financial situation. This is a low MSME loan rate, and business owners can obtain cash at a reasonable cost based on their financial situation. My Mudra Fincorp is committed to offering the lowest Business Loan interest rate in India. Our unsecured Business Loan interest rates are our distinguishing feature.

 

Other charges are defined below:

 

Processing fees

 

Our business loan levies a one-time processing fee of 2% plus applicable taxes. This is applicable on loan amount disbursal and is levied as an administrative fee for managing loan processing.

 

Foreclosure charges

 

Prepaying a Business Loan is an excellent strategy to save money on interest and keep prices down. You may prepay whenever you like with our loan and simply have to pay a little charge. This sum is equal to 5% of the outstanding principal, plus any applicable taxes.

 

Late payment charges

 

Failure to pay the loan EMIs can incur a penalty, which can be divided into two parts:

 

· Bounce charge: ₹1,000 per bounce, plus taxes

· Penal interest: 3% charged on the overdue amount every month

 

Business Loan

Types of Business Loan Interest Rate

There are two kinds of Business Loan interest rates: fixed and floating.

Fixed Interest Rate

Here, the rate of interest charged on the Business Loan amount will remain constant throughout the loan repayment period. You know your Business Loan EMI obligation at the start of the tenor, allowing you to plan your monthly budget accordingly.

Business Loan
Business Loan

Floating Interest Rate

Here, Business Loan interest rates could change depending on changes to the Marginal Cost of Lending Rate (MCLR), which is the base rate set for banks by the RBI. With changes in MCLR, the interest rate on loans also gets revised. With a lower interest rate, the repayment amount also reduces. On the other hand, if the interest rates increase, your EMI obligation will also increase. A floating Business Loan interest rate makes it difficult for you to ascertain your monthly financial obligation.

Business Loan Interest Calculation Method

There are two methods to calculate interest: flat rate method and the reducing balance method.

In the flat interest rate method, the interest rate is based on the complete loan amount you pay during the repayment period. In case of reducing the balance method, the rate of interest on the Business Loan will be considered and calculated on the basis of the outstanding loan amount.

Flat Interest Rate Calculation

EMI = (principal + total interest payable) / loan tenure in months i.e. total interest payable = P x r x n/100

Where, ‘P’ is the principal loan amount, ‘r’ is the rate of interest, and ‘n’ is the loan tenure in months.

Floating Interest Rate Calculation

EMI = [P x r x (1 + r) ^n] / [(1 + r) ^(n-1)]

Where, ‘P’ is the principal loan amount, ‘r’ is the rate of interest, and ‘n’ is the loan tenure in months.

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