Term loan interest rates

Term loan interest rates in India depends on various factors. The key features that determine you term loan interest rates are

             Your company status
             loan amount needed by you
             tenure of repayment
             Either you provide a collateral or not
             Your relationship with the bank you intend to take your loan from

Depending on the bank you are taking term loan from and the term loan related factors mentioned above, the average interest rates will be PLR + weightage of risk.

Processing fees for a term loan vary from 1% to 5% of the loan amount.

If you want to pay the term loan amount before agreed time period then there will be a pre-payment penalty applied by the bank. The pre-closure/prepayment/foreclosure charges are 1% to 4% of pre-closed amount.

The term loan amount ranges between Rs 10 lakhs to Rs 500 crores for small term.


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