Are you looking for a business loan at Low Interest Rate

Do you want to know how to apply for a business loan at lowest interest rate? If yes, then you are in the right place. In this article, you will come to know about business loans at low-interest rates.

Each business requires proper funding, whether it is small or big, in order to carry out all the essential functions or operations. The business loan enables you to fulfill all the requirements of the business operations. The most important factor that one needs to consider while taking a loan is the rate of interest. So, first let us understand about the rate of interest.

The rate of interest can be defined as the amount charged by the bank or any other lender to a borrower for the use of assets such as cash, goods, vehicles or many others. It is calculated according to the Annual Percentage Rate (APR). There are a lot of situations where the rate of interest is applied. Some of the common situations are as follows:

  • When someone borrows money to buy a new property
  • When organisations borrow money to fund their projects
  • When an organisation decides to start a new business

There are mainly two types of rate of interest applied on a business loan which are as follows:

  • Reducing or Diminishing Rate of Interest: The reducing or diminishing rate of interest is calculated each month on the remaining loan amount. The formula to calculate the reduced or diminished rate of interest is given as:

Reducing Rate of Interest = Interest Rate per Payment * Remaining Loan Amount.


  • Flat Rate of Interest: Flat interest rate refers to the interest rate calculated on the total amount during the course of its tenure. The formula for calculating the flat rate of interest is given as:

Flat Interest Rate = (Total Amount * No. of Years * Interest Rate p.a.) / Number of Payments

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