A business loan is an indispensable part of your requirements if you are a business owner, irrespective of its size. There are different options if you are looking for a Hero Fincorp Business Loan. Starting from secured, unsecured, working loans, etc, you can go for the specific loan that you need. But there are factors that may affect the interest rate that you have to pay. Read on to know about them.
The interest rate on a business loan usually gets affected by:
Â·Â Â Â Â Â Â Â Â Credit scores-Personal and business
Your CIBIL score and your business credit score are both responsible for a higher or lower interest rate. If the score is high, the lender may offer you a low-interest rate or you can also negotiate for a lower interest rate. Your ongoing or earlier loan repayment, missed instalments, credit card defaults, etc, are reflected in your personal credit score. If you have a low credit score, you may face a high-interest rate.
Â·Â Â Â Â Â Â Â Â Number of years your business has been running
While issuing a Hero Fincorp Business Loan, the lender would consider the number of years that your business has been operating. Vintage businesses have a greater advantage in this aspect as the lender thinks old businesses to be more trustworthy than new ones. So, if you have a business running for a number of years, you may get a loan offer with a low-interest rate.
Â·Â Â Â Â Â Â Â Â Nature of business
When it comes to businesses, the nature of a particular business also impacts the interest rate. The lender considers industries like travel and tourism, restaurants, hotels, etc. as riskier than other types of products and services. So, chances are that if you are in a business involving more risks, you may have to pay up a higher interest on your loan.
Â·Â Â Â Â Â Â Â Â Loan repayment period
The repayment period of a loan has a significant influence on the interest rate. If you choose a longer repayment period, the lender would fix a higher rate of interest as the risk of non-repayment increases in this case.
Â·Â Â Â Â Â Â Â Â An asset for mortgage
If you apply for a secured loan, then you may get the advantage of a low-interest rate. This is because you are keeping security with the lender which reduces his risk of lending to you. If you are not able to repay back, the lender would claim ownership of the mortgage to recover his loss.
Â·Â Â Â Â Â Â Â Â No default or missed EMIs
If you have a good history of paying your EMIs on time and no past defaults, chances are that you would get the loan at a low-interest rate. This is because the lender trusts your repayment ability.
Â·Â Â Â Â Â Â Â Â Your business performance
The lender would check your companyâ€™s financial position while processing the loan application. If your business earns high profits, it may help you in getting a lower interest rate.
Certain factors affect the interest rate for a Hero Fincorp Business Loan. Go through them carefully to avail of a lower interest rate and save more.
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Hero FinCorp Limited
09, Basant Lok, Vasant Vihar, New Delhi â€“ 110057
Email Id: Corporate.Care@HeroFinCorp.com
Website – https://www.herofincorp.com/