InvestorQ : How important is the interest rate for my business loan?
Sakshi Malhotra made post

How important is the interest rate for my business loan?

Radhika Arya answered.
3 years ago

Interest rate is extremely important for any loan and not just a business loan. You must take it into consideration as it may affect the growth of your business and might also turn out to be negative for your business if you deal with it carefully.

If your business does not have a high turnover, then you must opt for a loan which has relatively lower interest rate.

If a businessman has a low turnover, then he can opt for a loan against property where the property is kept as collateral and the interest rate is low as 10%. This can also be changed by lending a bank overdraft or a cash credit where the interest rate is at 11-13%.

You must check the best interest rates before going to the business loans and opt for the one where the interest rates are low and there is less risk.

Lastly, you should take into account the assets which are being used as collateral when you are taking the business loan for your business purposes. Ensuring you make EMI payment regularly, you can have a good loan experience.