A business loan is the best and hassle-free way to get funds for your temporary and immediate needs of cash for the business. It provides funds for expansion of your business that can be utilized for buying a machinery or procurement of raw materials and so on.
ZipLoan provides the business loan in India at a very attractive rate of interest and with the advantage of the part and full prepayment of loan. It allows you to repay the loan before the expiry of the loan. This reduces the tenure of the loan as well as the burden of interest.
You can either opt for:
If you decide to prepay your loan in full before the expiry of the original loan tenure, then you can save a lot of money on interest.
For example: If you have a business loan for Rs. 2,00,000 with an interest rate of 24% for the term of 2 years, then your monthly EMI comes to Rs.10575 and the customer may have to pay a total amount of Rs. 53,782 in respect of interest. So, if the customer decides to prepay the loan in full at the end of 1 year, then he will save a total of Rs. 15,070 on interest.
You can even prepay the part of the loan if you do not have the full amount to completely repay the loan. It helps in bringing down the unpaid principal amount which further reduces the amount of future EMIs as well as the burden of interest.
It is very helpful in reducing your cost of interest. If in the above-mentioned example, borrower instead of repaying in full pay an amount Rs, 100,000 after one year then he will save an interest of Rs. 13748.
Hence, either you decide to go for full repayment of a loan or partial, either of them will help you in saving a considerable amount of interest based on the timing and amount of your prepayment.
There are few other benefits that ZipLoan offers on the prepayment of a business loans:
- No Prepayment Charges: Most of the banks levy some kind of charges on prepayment of loan so as to compensate their loss of interest. But, there are no such charges levied by ZipLoan.
- No Penalty Charges:There are no penalty charges on prepayment of loan as charged by other banks.
- No Lock-in Period: You can raise a request for prepayment of your business loan with Ziploan anytime during the tenure of the loan without any restrictions or lock-in period.
The Bottom Line
In case you have excessive funds at any time during the tenure of the loan, then it is always a better decision to prepay your loan and save your money that is being spent towards interest.