What is a Business Loan Interest Rate?
A Business Loan interest rate refers to the percentage charged by lenders on the borrowed amount used for business-related expenses. Whether you are planning to expand your business, purchase new equipment or manage working capital, the interest rate plays a critical role in determining the overall cost of your business loan.
At Godrej Finance Limited, we offer competitive Business Loan interest rates starting from 17% p.a., designed to empower businesses across sectors with quick access to capital and minimal hassle.
Types of Business Loan Interest Rates
1. Fixed Interest Rate
With a fixed rate, your interest remains unchanged for the loan tenure. This gives you predictable EMIs and helps with long-term budgeting.
2. Floating Interest Rate
Floating interest rates vary with market conditions or external benchmarks. While your EMIs may fluctuate, floating rates can lead to cost savings when market rates go down.
3. Hybrid Interest Rate
A hybrid rate combines the features of both fixed and floating rates. It typically starts with a fixed rate for an initial period before switching to a floating rate.
Interest Rate & Charges, Documents & Eligibility for Business Loan
Business loan interest rates with Godrej Capital are competitive and transparent. Check if you meet our simple eligibility criteria to get quick, collateral-free funding for your business.
| Types of fees | Charges applicable |
| Rate of Interest | Starting from 17% per annum |
| Loan Amount | INR 5 lakhs to INR 50 lakhs |
| Processing Fees | Up to 3% of the loan amount |
| Foreclosure Charges | Up to 6% of principal outstanding at the time of foreclosure |
| Part Pre-payment Charges | 2% of the amount prepaid |
| Charges towards Stamp Duty | As applicable & prescribed by the relevant Government Authority |
Organising your business loan documents is easy with our step-by-step checklist. The documents required for a business loan include basic identity proof, business verification and income records. Submitting accurate paperwork for a business loan ensures faster approval and quicker disbursal of your loan.
| KYC Documents | PAN Card |
| Aadhar Card (Proof of Address) | |
| Passport-sized photo | |
| Udhyam Certificate (if applicable) | |
| Income Documents | GST Certificate (if applicable) |
| Latest 6 months bank statement |
*Refer Policy document for more details
To apply for a business loan with Godrej Capital, you must meet a few basic eligibility requirements. We assess your business vintage, turnover, credit score, and financial health. Our streamlined process ensures easy business loan eligibility checks so you can get the funds you need faster and without hassle.
| Loans for | Self Employed Non-professionals |
| Profile | The applicant should be a Sole Proprietor/Partnership firm/Private Ltd Co./Unlisted Public Ltd Co./LLP involved in the business of Manufacturing, Trading or Services |
| Age | 25 to 65 years |
| Business Vintage |
1. Minimum business vintage of 3 years 2. Minimum turnover of INR 40 lakhs 3. Bank account in the name of the business 4. Minimum profit of INR 3 lakhs |
* Disclaimer: All contents mentioned on this page, including but not limited to documents, eligibility may vary for each borrower and are subject to the discretion of the lender. The content is subject to change without prior notice.
Factors Affecting Business Loan Interest Rates
1. Business Vintage
The longer your business has been operational and profitable, the better your chances of securing a lower interest rate.
2. Credit Score
A strong business or personal credit score, usually 700+, signals creditworthiness and lowers the risk for lenders, potentially reducing your rate.
3. Loan Amount and Tenure
Shorter repayment tenures may attract lower rates. The sanctioned amount also plays a role based on the lender’s risk evaluation.
4. Business Type and Industry
Certain industries or business models with stable income flows and growth prospects may be offered more competitive rates.
5. EMI Payment Ability
Showing consistent cash flow and repayment capability increases your chance of getting a better interest rate.
Key Features & Benefits of Godrej Capital Business Loan
Smart Business Loan Calculator for Financial Planning
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