Some charges like the interest rate, processing fee, EMI bouncing charges, etc. are involved with a business loan. So, it is necessary to know about these costs when applying for a business loan so that there is proper funds management.
Although, a loan in meeting the financial requirement of the business but, knowing much how a businessman would be spending to get the loan is important.
Various fees and charges that are applicable on a business loan:
1. Business loan processing fee
A processing fee is charged on the loan amount for processing the loan application. It also involves s the cost of checking the CIBIL score, loan approval, etc. The lender generally deducts this amount from the loan amount that is sanctioned before the loan amount is credited to the business owner’s bank account.
2. Interest rate
The interest rate charged by the lender is calculated, taking into consideration the loan amount, it is charged annually.
3. EMI bouncing charges
If you miss on an EMI, a penalty is charged. These have a negative impact on the CIBIL score.
4. Interest charged on late payments
There is also an interest which is charged by the lender if you miss on an EMI or when you default on repayment.
5. The online convenience fee(for online loans)
If you want online access to your loan account, there is a fee which is charged for it. The lender will provide the id and password for this purpose.
Some lenders also have an online app, which is free of cost.
6. Pre-payment charges
You might want to repay the loan before the loan tenure. So, if you want to make a prepayment or foreclose the loan, a penalty will be charged on it.
But if you take a loan from an NBFC, no penalty will be charged from you.
When you are aware of these charges lender cannit charge any other unnecessary fees from you.
If you want to apply for an uns3ecured loan for your business, contact Gromor Finance for quick loans!