Raw Material Financing Loans

NEVER LET SHORTAGE OF FUNDS BECOME AN OBSTACLE IN YOUR BUSINESS

As its name implies, our raw material financing loan is designed to help small businessmen keep their raw material inventory in check. Opt for My Mudra’s Raw Material Financing Loan and keep your business in good shape. 

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Raw Material Financing Loans

 

Interest Rates & Charges


The fees associated with a business loan are among the most crucial things to think about before borrowing. Your debt grows as a result of paying exorbitant fees or interest rates. By providing the best Business Loan interest rates and fees, My Mudra's Business Loan aids in avoiding such a situation. With it, you can control expenses and maintain a positive cash flow throughout. We also offer our clients cheap interest rates on unsecured business loans. At MyMudra Fincorp, we offer some of the best term loan interest rates in the business.

 

Applicable Fees

 

Interest rate

 

A raw material financing loan interest rate ranges between 15% and 28% which would help you control costs and keep your EMIs manageable. You may be confident that your experience will be affordable when combined with our other reasonable fees and distinguishing features.

 

Processing charges

 

For loan processing, verification, and other administrative services, we charge a small processing fee. Our fee is between 2 % of the approved loan value, along with the applicable taxes.

 

Foreclosure charges

 

Prepaying a raw material financing loan is a wise move that will keep costs down and interest rates low. You can prepay our loan whenever you can and will only be charged a small cost for doing so. This sum represents 5% of the outstanding principal plus any relevant extra taxes.

Raw Material Financing Loans

Types of Raw Material Financing Loans Interest Rate

There are two kinds of Raw Material Financing Loans interest rates: fixed and floating.

Fixed Interest Rate

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

Raw Material Financing Loans
Raw Material Financing Loans

Floating Interest Rate

Here, Raw Material Financing Loans 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 Raw Material Financing Loans interest rate makes it difficult for you to ascertain your monthly financial obligation.

Raw Material Financing Loans 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 Raw Material Financing Loans 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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