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Apoorv Chaudhary
by on July 26, 2021
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India Infoline Finance Limited (IIFL) is a finance and investment services firm that provides its consumers with financial and loan solutions. IIFL business loan interest rate starting at 16 percent. IIFL provides the financial support required to keep daily cash flow under control. To address any unanticipated requirements, the company sets aside sufficient capital for receivables, inventories, and planned expansion.  

Highlights of IIFL Business Loan 

  • Credit facilities of up to Rs. 50 lakhs are available from IIFL. 
  • Tenure is required for 12 to 36 months. 
  • IIFL Finance offers a variety of repayment options. 
  • There is no need for collateral. 
  • Quick approval with minimal paperwork. 

Factors affecting IIFL Business Loan Interest Rate 

The business loan interest rate is an important factor that every borrower analysis before taking out a loan. In fact, most borrowers' decision to take out a loan is based solely on the interest rate. Interest rates have a significant impact on your loan terms and future company requirements. As a result, calculating the rates and gaining a comprehensive picture of them is most likely a critical task.  

Typically, interest rates differ from one lender to the next. Certain circumstances, however, have an impact on the interest rates you are charged. These specified parameters are used to calculate the interest rate on a business loan in India. If you don't want to be caught off guard, pay attention to these business loan interest rate deciding variables.  

  • Credit Score 

The credit score is one of the most important factors that lenders use when determining your loan eligibility and, as a result, your interest rates. In general, a credit score of 700 or more is considered advantageous for obtaining the best business loan interest rates in India. Additionally, lenders look at your company's credit history at the same time. This assists them in determining the borrower's ability to repay the loan. As a result, having a good credit history makes the loan procedure go more smoothly. The lower your credit score is, the lower the interest rates charged.  

  • BUSINESS STYLE 

The interest rates on your business loans are sometimes influenced by the type of business you choose. This is due to the fact that some enterprises are riskier than others. The interest rates imposed on your business loan may vary depending on the lender's assessment of the risk involved.  

  • THE BUSINESS AGE 

When compared to newer businesses, a well-established company is more likely to acquire lower loan rates. This is due to the fact that many Indian lenders prefer to lend to small enterprises with proven track records in the area. As a result, if you've been in the same industry for a long time, it's a good sign for the lending institution. Better lending conditions and repayment options will be presented to you. A fresh stage startup or business with little experience, on the other hand, would be charged higher loan rates.  

  • PLAN OF ACTION 

Although not all lending institutions demand a business plan, if you have a new endeavor, you may be required to submit one. Your business strategy should be short and to the point. It should make all of the information about the money's intended use and how it will be used very clear. If, on the other hand, your plan is ineffective and shows no signs of growth, the lending institution may authorize your loan but charge a higher interest rate. 

THE BUSINESS'S FINANCIAL HEALTH 

The financial condition of a company plays a big role in setting the interest rate on a business loan. A company with strong financials is a better candidate for a loan since it can be relied on to repay the debt without difficulty.   

The cash flow statement, balance sheet, and profit and loss account would be used by the lender to evaluate the fundamentals of your business. If your business is lucrative and carries little risk, you may be eligible for a loan with a reduced interest rate.  

COLLATERALS  

The monetary value of a business owner's holding asset is referred to as collateral. Due to the fact that not all borrowers are able to provide collateral, interest rates vary. However, a growing number of lending organizations now offer low-interestcollateral-free business loans. Though these unsecured loans do not demand collateral, having a solid business asset can help you get a larger loan with lower interest rates.  

All of these elements are taken into account when determining the interest rate on your business loan. Learning about these elements can help you plan for your specific business requirements. It will also assist you in selecting the finest finance option available. Fortunately, if all of these variables work in your favour, most lenders will almost certainly issue you a low-interest loan.  

Criteria for Eligibility 

To acquire a business loan from IIFL, you must meet the following requirements: 

  • Companies that are sole proprietorships, partnerships, or private limited companies engaged in manufacturing, trading, or services are eligible. 
  • The company must have been in operation for at least three years. 
  • In its documents, the company must show gradual progress and profit. 
  • Strong credit history is required of the candidate. 
  • An applicant who has never been in financial default before. 
  • A citizen of India who has never been convicted of a crime.

Documents Needed to Apply for a Loan 

The following are the documentation that the applicant must obtain when applying for an SME loan from IIFL:  

  • All co-applicants must submit a completed application form with a recent photograph. 
  • KYC Documents that are authentic and valid, as per RBI standards (Address & ID proof) 
  • GST Challans / VAT returns / ITRs from the previous year that has been officially validated by a CA.
  • 3 months' worth of bank statements from the business 
  • For the credit assessment and proper processing of the loan, additional papers may be requested.  

Conclusion: 

To conclude, it’s really simple and convenient to get IIFL Business Loan from Afinoz. You can also use Afinoz’s EMI calculator to calculate loan EMI. 

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