Muthoot Finance Ltd Business Loan
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.
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
- 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.
|Muthoot Finance||21.25% to 22.60%|
|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:
- 99469 01212
Rest of India
- 78348 86464 (Lv. 1)
- 88006 75111, 011 46697744 (Lv. 2)
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Muthoot Finance Ltd's Other Products
Business Loan By Other Banks
- Axis Bank Business Loan
- Bank of Baroda Business Loan
- HDFC Bank Business Loan
- ICICI Bank Business Loan
- Bajaj Finserv Business Loan
- IndiaBulls Business Loan
- Canara Bank Business Loan
- CITI Bank Business Loan
- DHFL Business Loan
- YES Bank Business Loan
- Union Bank of India Business Loan
- Federal Bank Business Loan
- IndusInd Bank Business Loan
- State Bank of India Business Loan
- IDFC FIRST Bank Business Loan
- Punjab National Bank Business Loan
- Hero FinCorp Business Loan
- IDBI Bank Business Loan
- Digikredit-SME Corner Business Loan
- Kotak Bank Business Loan
- Deutsche Bank Business Loan
- Shriram Urban Co Operative Bank Limited Business Loan
- Tata Capital Housing Finance Limited Business Loan
- Standard Chartered Bank Business Loan
- Ujjivan Small Finance Bank Business Loan
- Capital First Ltd. Business Loan
- NeoGrowth Business Loan
- RBL Bank Business Loan
- Clix Capital Business Loan
- Aditya Birla Finance Limited Business Loan
- L&T Finance Business Loan
- Loantap Credit Products Private Limited Business Loan
- Lending Kart-Nbfc Business Loan
- Poonawalla Fincorp Limited Business Loan
- Piramal Housing Finance Business Loan
- Fullerton India Business Loan
- Tata Capital Financial Services LTD Business Loan
- IIFL Finance Business Loan
- Edelweiss Financial Services Business Loan
- INDIFI Business Loan
- INTELLEGROW Business Loan
- Bank of India Business Loan
- DCB Bank Business Loan
- Capri Global Business Loan
- UGRO Capital Business Loan
- HDFC Sales Business Loan
- FT Cash Business Loan
- HSBC Business Loan
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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