Urban Money

Muthoot Finance Ltd Business Loan

Muthoot Finance Ltd
4.5

Small firms and entrepreneurs can use business loans to aid them with their cash needs. There are numerous financial institutions across the nation that offer specialised business loans with low interest rates to meet your demands. Where Muthoot Finance Ltd  offers Business loans with flexible terms and rates starting at 9.84 % p.a. for amounts up to Rs. 5 crore.

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Urban Money

Business Loan Banks

Interest Rate

Processing Fee

Loan Amount/Tenure

Muthoot Finance Ltd Business Loan Interest Rate

9.84% - 10.5%

Up to 2%

₹25L - ₹5Cr

Tenure(1 Years)

Details

Features and Benefits of Muthoot Finance Business Loan

Muthoot Finance, one of India's leading financial services providers and an RBI registered NBFC, offers business loans through its subsidiary company, Belstar Microfinance Limited. The company provides different types of business loans, including SME Business Loan, Corporate Loan and Micro Enterprise Loan.

Each Muthoot Finance Business Loan offers distinct loan amounts, processing charges, and repayment tenures. A gist of the same has been mentioned below in the table:

Particulars Small and Medium Enterprise Micro Enterprise
Loan Tenure 30 Months 12 to 24 Months
Moratorium Period 1 Month 0 Month
Loan Amount ₹75,000 - ₹2,00,000 per member ₹15,000 - ₹70,000 per member

You can avail of numerous benefits from Muthoot Finance Business Loan's unmatched features, which are as follows:

  • Collateral free loan with flexible loan repayment tenure.
  • The entire loan processing procedure, right from onboarding until financing, is paperless.
  • The company uses advanced and efficient technology to enable automated and easy workflows for the reconciliation of payment to invoice.
  • The financing solution offered by Muthoot Finance goes deep into the supply chains (upstream and downstream) of corporates.
  • Micro-Enterprise Loan is designed to finance women entrepreneurs through the unique and acclaimed SHG (Self Help Group) Model.

Eligibility Criteria for Obtaining Muthoot Finance Business Loan

Muthoot Finance has designed a few easy to meet eligibility criteria for applicants seeking business loans.

  • The age of the applicant must be at least 21 when applying and less than 65 during the loan maturity.
  • The applicant must not belong to the banking sector.
  • Applicants from any of the working sectors, i.e., trading, service or manufacturing, can apply for Muthoot Finance Business Loan.
  • Micro businesses, like vegetable vendors, grocery shops, etc., can get a business loan.
  • Any Sole Proprietorship Firm/Partnership Firm/Private Limited Companies/Self-Employed Individuals/Professionals/Closely-held Limited Companies can apply for a loan.
  • Small and Medium Enterprises like tailors, shops, etc.

Muthoot Finance Business Loans Fees and Charges

Muthoot Finance levies a processing fee of 1.5% of the loan amount availed.

Muthoot Finance Business Loan Interest Rates

The interest rate for different business loans in Muthoot Finance might differ depending on current market conditions and the profile of the borrower.

Particulars Small and Medium Enterprise Micro Enterprise
Interest Rate 21.25% to 22.60% 21.25% to 22.60%
Processing Charges 1.5% of the loan amount 1.5% of the loan amount

The interest rate details of the Corporate Loan are currently unavailable. So, you can directly call the customer service of Muthoot Finance and inquire about the same.

Factors Affecting Muthoot Finance Business Loans

Although business loans have higher interest rates than other loans, there are certain factors that can be considered to keep them the lowest.

  • Credit History: Your credit history must demonstrate that you have paid your loans and bills on time. Any irregularities or delays in the report may lead you to pay higher interest rates on the business loan.
  • CIBIL Score: Your credit or CIBIL score should be at least 750. The higher the credit score, the lower the interest rate on a loan could be.
  • Avoid Getting on Defaulters List: If you are on the defaulter's list, your chances of getting a loan at lower interest rates reduce. Lenders don't appreciate borrowers on the defaulter's list. Therefore, you must pay your debts timely and regularly.
  • Relationship with the Lender: If you want your loans to be sanctioned instantly and at lower interest rates, you must maintain a healthy relationship with the lender.
  • Age of the Borrower: The closer you approach retirement or citizenship (65 in most cases), the lesser your chances of getting a loan at lower interest rates. This is because the retirement age induces risk on the loan repayment potential of the borrower.
  • Income of the Borrower: Banks and financial institutions usually levy a lower interest rate to firms or individuals having a higher income.

Documents Required for Obtaining Muthoot Finance Business Loans

While applying for Muthoot Finance Business Loans, you must furnish the following documents:

  • Identity proof, such as a driving license, voter ID card, aadhaar card or valid passport
  • Address proof, such as the latest bank statement, electricity bill, telephone bill, registered lease deed
  • Business continuity certificate, which may include the bank statement for the last six months, income tax returns for the last two years, Sales Tax Challans, Partnership Deed, Certificate of Incorporation, or Shops and Establishment Certificate
  • Ownership proof of the office with the applicant's name
  • Profit and loss statement
  • Balance Sheet, and
  • Passport size photograph of all the applicants and co-applicants.

How Does the EMI Calculation Work for Muthoot Finance Business Loans?

Muthoot Finance Business Loan Calculator renders an estimate of the loan EMI that you may have to pay based on your desired loan amount. That way, you can plan your finances beforehand. You can also use Urban Money's Business Loan EMI Calculator to do the same.

Figure out your EMI in an instant by entering the loan amount, tenure in years, and the interest rate in the Urban Money's Business Loan EMI calculator. The outcomes will be displayed on the screen. The EMI calculator also provides an option to change the amount as per your requirements.

Besides this, you can also use the following formula for calculating the business loan manually.

EMI = P x R x (1+R)N/ (1+R) N - 1

Where,

  • P = Loan Amount
  • N = Loan Tenure
  • R = Rate of Interest

How Does Muthoot Finance Business Loan Compare with Other Lenders?

Below, comparisons are made based on the interest rates offered on business loans by different lenders.

Bank/NBFCs Interest Rate
Muthoot Finance 21.25% to 22.60%
DHFL 17% p.a.
L&T 10.75% - 20.5%
HDFC Bank 11.90% – 21.35% p.a.
IDFC First Bank 14.50% onwards
Kotak Mahindra Bank 16% – 19.99%
Axis Bank 14.25% – 18.50% p.a.
Lendingkart Finance 1.5% – 2% per month
RBL Bank 17.50% – 25% p.a.
IIFL Finance 11.75% – 25.75% p.a.
ZipLoan 1% – 1.5% per month (Flat ROI)
ICICI Bank 18% onwards
Tata Capital Finance 19% p.a. onwards
Bajaj Finserv 17% p.a. onwards
NeoGrowth Finance 19% – 24% p.a.
Fullerton Finance 17% – 21%
FlexiLoans 1% per month onwards
Indifi Finance 1.5% per month onwards
Hero FinCorp Up to 26% p.a.

Muthoot Finance Business Loan Customer Care

For any queries or additional information regarding the business loan from Muthoot Finance, you can contact Muthoot Finance's customer service at:

South India

  • 99469 01212

Rest of India

  • 78348 86464 (Lv. 1)
  • 88006 75111, 011 46697744 (Lv. 2)
  • +91-44-43414567

FAQs

From refinancing to reducing your interest, we have the answers right here.

What are the interest rates offered on Muthoot Finance Business Loans?

The interest rates on Muthoot Finance Business Loans range from 21.25% to 22.60%.

What is the purpose of offering a Micro-Enterprise Loan?

The purpose of Muthoot Finance’s Micro-Enterprise Loan is to support women entrepreneurs in their new or existing businesses.

What is the maximum amount of business loan that you can get from Muthoot Finance?

Muthoot Finance offers a maximum loan amount of ₹2,00,000.

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