Business Loans in Gurgaon, New Delhi, and NCR from Top Banks in India

• The amount of loan is decided by bank on the basis of income of the customer and the purchase value as well as market value of the property. The property to be purchased should legally and technically be acceptable for the purpose of creating mortgage.

How Much Can I Avail?

When it comes to business loans, two major factors determine your loan eligibility: your income profile and your CIBIL score.

A strong CIBIL score and a good repayment history of existing credit lines significantly boost your chances for an unsecured business loan.

For income eligibility, lenders generally refer to your declared income in financial documents. However, if your declared income is on the lower side, there are alternative assessment methods, such as:

• Banking surrogate: The average balance maintained in your bank account over the last six months helps determine loan eligibility.

• GST-based turnover multiplier: Loan eligibility is calculated using your GST-reported sales, and a presumed profit margin is applied based on your industry segment.

What Should I Know About Interest Rates?

Business loans typically carry a higher interest rate than secured loans due to the associated risk.

The interest rate is generally fixed for the entire duration of the loan, giving you clarity on repayments over time.

How is the Loan Repaid?

Business loans are repaid via EMIs (Equated Monthly Installments). As the term implies, the amount remains consistent each month throughout the loan tenure.

Each EMI includes:

• A principal portion (repayment of the loan amount)

• An interest portion (cost of borrowing)

The proportion of interest vs principal varies based on the loan term selected. The longer the tenure, the greater the interest portion in each EMI.

You can calculate EMIs using our online EMI calculator, and for detailed payment schedules, our amortization calculator gives you a month-wise breakdown.

Loan tenures for business loans typically range up to 4 years, depending on your age and eligibility.

Can I Prepay or Foreclose My Loan?

Since business loans come with fixed interest rates, banks usually levy penalties on early repayments.

• Part-prepayment or foreclosure may attract charges between 2% to 4% of the outstanding or prepaid amount.

• These charges vary across lenders, especially in the case of business entities.

Are There Any Additional Charges?

Yes, processing or administrative fees are standard with business loans and typically range from 1% to 3% of the loan amount. These charges depend on your loan amount and overall borrower profile.

We strive to negotiate with lenders on your behalf and often offer partial or complete fee waivers, making the loan application process more cost-effective for our clients.

What’s the Breakdown of EMI Components?

Each EMI consists of two parts:

• Principal repayment

• Interest payment

Shorter loan terms lead to higher principal repayment in each EMI. Conversely, longer terms front-load your EMIs with more interest.

To get a full view of how your EMIs are split over time, refer to our amortization schedule, which you can generate using our calculator tool.

Want to know your exact eligibility?

Contact us today and our loan advisors will guide you through a personalized evaluation.

The most important factor in a business loan is income eligibility and CIBIL SCORE in Business Loans.

Good CIBIL score & Good Repayment track record of existing Loans is the most important factor in Unsecured Business Loans.

Income Eligibility Banks and Institutions work on the basis of Income shown in the financials, however there are other products too under which loan can be extended where income shown in financials is not enough to extend a loan. There are various products to calculate loan eligibility like Banking Surrogate where average balance during the last 6 months decides how much loan can be extended. Other surrogate methods are GST turnover multiplier where income is determined on the basis of GST sales data of the last 1 year and applying industry margin to calculate the income.

What should I know about Interest Rates?

The interest rate on a Business loan is generally higher than all other secured loans.

The interest rate on the loans fixed for the entire term of the loan.

How do I pay back the loan?

The loan gets paid through regular monthly payments termed as EMI (Equated monthly installment). As the word equated suggests the payment remains equal for the entire term of the loan. EMI comprises of the interest payment and the principal payment. Depending on the loan tenure opted; the component of Interest keeps changing.

You can use our EMI calculator to calculate the EMI for any loan amount for a particular tenure on a given rate of interest.

The loan tenure for a commercial can be up to 4 years, depending on the age of the applicant.

The more the tenure of the loan, the higher is the component of Interest in each EMI. You can use our Amortization calculator to understand it better.

Can I pre-pay or foreclose my loan?

As business loans are on a fixed rate, most banks charge a penalty on any part-prepayment made during the loan tenure.

A penalty gets paid on foreclosure of the loan as well.

The penalty ranges between 2% to 4% of the loan amount.

Do I pay any charges while availing a loan?

All banks charge a fee from a borrower to process the loan application. The fee is termed as processing fees or administration charges.

The fees on a business loan ranges between 1% to 3% depending on the loan value, the borrower profile etc.

We help you negotiate best terms with the lender, hence we refund part or full fees to our borrowers making it a free processed loan for them.

What is the break up of Interest & Principal payment in each EMI?

Each EMI you pay for the repayment of the loan comprises of two components – Principal & Interest. The break up of these two components in each EMI depends on the loan tenure. The lower the loan tenure, higher is the principal payment in each EMI.

The break up can be best understood by making an amortization schedule of the loan.

Amortization refers to spreading payments over multiple periods. It is the paying off a loan with a fixed repayment schedule in regular installments over a period of time.

You can download the amortization schedule of any loan by using the amortization schedule calculator