How is interest calculated on a business loan
                     HOW IS INTEREST 
CALCULATED ON A BUSINESS 
LOAN?
HERE ARE SOME FACTORS LENDERS TAKE INTO 
CONSIDERATION BEFORE GRANTING BUSINESS LOANS
 A business loan is a perfect solution 
to overcome financial stress and 
crisis. It helps in handling all kinds 
of business-related expenses. Small 
or big businesses need investment 
at every step of growth. The entire 
lifecycle of a business depends on a 
smooth source of funds. In India, 
there is a lot of entrepreneurship 
energy, but there is a lack of funds. 
WHAT IS THE RATE OF 
INTEREST? 
 It is not a fixed rate and there 
are a lot of variations when you 
choose different loan providers 
or financial institutions. The 
interest rate on a business loan 
is calculated on the basis of 
eligibility, tenure and 
commercial loan amount. Find 
out how you can work out to get 
the best rate with a 
business loan interest calculat
or
. 
FACTORS THAT DECIDE THE RATE OF INTEREST
 Loan provider: A loan provider is directly 
or indirectly responsible for the business 
loan interest rate. It is on the 
financial institution and the rate is 
different for every loan provider. Some 
would offer you a low rate, while others 
go for a high rate of interest. 
 Things like credit score, income, 
business growth, stability, revenue, 
business plan and business cash flow are 
behind deciding the rate of interest. The 
business rate of interest is low when the 
eligibility is well fulfilled. This will help 
in getting the best rates and it makes the 
borrowing burden free. 
GROW AND DEVELOP YOUR BUSINESS
 The tenure you choose also 
determines the rate of interest. If 
you go for a long-term loan, the 
rate of interest is low. For a short-
term loan, the rate of interest is 
high. 
 Loan amount: For a small amount, 
the rate of interest is high. 
However, when you go for a high 
principal amount, the rate of 
interest will be low. 
BORROWING WITH BAD CREDIT
 Use a business loan interest 
calculator when you are looking 
for a commercial loan. It will 
be helpful to grow and stabilize 
your business. Work on the 
areas that need funds to 
develop and expand. 
Clix Capital Services Private Limited
Address: 
901b, 9th Floor, Two Horizon Centre, DLF Phase V, Gurgaon, Haryana, India – 
122002
Phone Number: 1800 200 9898
Email  us at : [email protected]
Website: www.clix.capital