Banks and other financial organisations provide loans for commercial property in exchange for a commercial property mortgage. So, a commercial property loan can be your best option if you wish to grow, refurbish, or buy a business location. Often while buying a commercial property, people wonder, “What is the average interest rate on a commercial loan?”
Calculate your EMI on a home loan via the NoBroker EMI calculator Get home loans without hefty paperwork through NoBroker
I started my research about, what is interest rate on commercial property loan? I discovered that banks and NBFCs offer business loans with interest rates starting at 16% p.a. for loans up to Rs. 2 crores that can be repaid over a maximum of 5 years. For the unsecured business loans made available by the financial institutions, the borrowers are not obliged to provide any security or collateral.
After my research, I found the interest rates of several banks/ NBFCs. Hence, I’d like to share a table regarding,
What is the interest rate on commercial loans?Bank/NBFCs |
Interest Rate |
Axis Bank |
14.95% - 19.20% p.a. |
Bajaj Finserv |
9.75% - 30% p.a. |
Flexiloans |
1% per month onwards |
HDB Financial Services Ltd. |
Up to 36% p.a. |
HDFC Bank |
10% - 22.50% p.a. |
IDFC First Bank |
15% p.a. onwards |
Indifi |
1.50% per month onwards |
Kotak Mahindra Bank |
16% - 19.99% p.a. |
Lendingkart |
1% - 2% per month |
Mcapital |
2% per month onwards |
NeoGrowth Finance |
19% - 24% p.a. |
Tata Capital |
12% p.a. onwards |
UGRO Capital |
14.90% p.a. |
Boost your credit score and keep it above 750 on a scale of 900.
Keep a stable financial situation and a solid history of loan repayments.
Paying bills, loan EMIs, and credit card payments on time will increase your creditworthiness.
Keep a decent source of income
Request a long-term business loan rather than a short-term one.
Establish a connection with the bank and open an account.
Do not close your previous bank or credit card accounts.
Request a loan from a reputable commercial or public sector bank.
If you need to provide valuable security or collateral for a secured company loan, offer it or provide it.
I’d like to conclude my answer here about, “What is the average interest rate on a commercial loan?” I hope this helps:)
Read More:
Difference between residential and commercial loans? How to Get Loan for Commercial Land Property? Can I Get Business Loan to Buy a Commercial Building?Your Feedback Matters! How was this Answer?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
What Is The Average Interest Rate On A Commercial Loan?
pratik
387 Views
1
2 Year
2023-03-14T16:29:58+00:00 2023-03-14T16:41:47+00:00Comment
Share