Business Loan

Overview

In the continually evolving business landscape, it is highly essential to have access to working capital and money to ensure that your business runs smoothly without any impediment. Core business processes require funds and capital depending on the size of your business and the scale you want to achieve. Therefore, irrespective of your size, the inflow of capital is very important for your growth and functioning. Business loans are effective solutions to this fund shortage. They bridge the gap between demand and delivery for businesses and help them grow effectively without any hurdles. Financial partners like Oxyzo provide impeccable solutions when it comes to business loans in India. Oxyzo's offerings are seamless and tailor-made for all businesses. In this article, we will take a look at the nuances of business loans, benefits, application processes, etc.

Business Loan Interest Rates 2024

Being aware of the latest interest rate slabs is very important for making an informed financial decision, which is essential for the sustenance of the business. Interest rates usually vary from one lender to another. It is decided on the basis of the type of loan, the total amount of the loan, the credit score of the borrower and many other factors. To ensure effective financial planning, it is always advisable to compare interest rates before making a final decision.

Oxyzo provides a really attractive rate of interest for their business loans. Starting from 12% per annum with a processing fee of 1% per annum, it creates a favourable package for businesses of all scales. It is in the best interests of the business owners or borrowers to always check the business loan interest rates and analyze if it suits them before taking such important financial decisions as securing a business loan.

Types of Business Loans Available

Let’s dive into the various types of business loans available in the Indian market. From long-term loans to working capital loans, each option serves a specific purpose.

Term loans: These are traditional loans that offer a lump sum to the borrower, with interest payable over a fixed term. Term loans are ideal for investing long-term, such as purchasing equipment, expanding operations, or introducing new products.

Business Loans: Intended to finance day-to-day business expenses, working capital loans ensure that enterprises or businesses have the funds they need to meet their short-term financial obligations. These loans are critical to sustaining operations.

Secured Loan: A secured business loan requires collateral such as property or equipment to avail the loan. The lender can foreclose on the loan balance. Secured loans generally carry lower interest rates due to reduced risk for the borrower.

Unsecured loans: Unlike secured loans, unsecured business loans do not require collateral. However, their interest rates generally rise to compensate for the increased risk posed by the lender.

Government-backed schemes: Various government agencies aim to provide subsidised loans and financial assistance to support small and medium enterprises (SMEs). These programs may come with simplified eligibility criteria and relevant information.

Machinery Loans: These are specially designed for businesses that need to purchase machinery or equipment. The instrument itself acts as collateral for the loan.

It is very important to understand the needs and requirements of your business before making a decision as to what type of loan will suit your needs the most. Therefore, always do a thorough analysis of your requirements and the offerings or features of a business loan to make the right decision for your business.

Business Loan EMI Calculator

It’s important to understand the potential repayment burden before committing to a business loan. Use an EMI (Equated Monthly Installment) calculator to calculate your monthly loan repayments based on the loan amount, interest rate and tenure.

EMI calculators simplify the complex calculations of figuring out your monthly repayments. The calculator provides accurate EMI data by entering the loan amount, interest rate and tenure. The business loan calculator empowers you to make informed decisions in line with your financial capacity. Follow these steps to use the business loan EMI calculator:

• Enter the loan amount: Enter the desired loan amount you are requesting from the lenders.
• Set Interest Rate: Enter the appropriate interest rate. This business loan interest rate can be either fixed or variable, depending on the terms & conditions of your loan.
• Select the loan term: Select the loan term or the number of months you plan to repay the loan.
• EMI Calculator: Click on the calculate button to get the monthly EMI amount.
• Result Analysis: Check the detailed breakdown of your EMI, including principal and interest components.