What is the typical interest rate for eCommerce business loans?

Generally speaking, interest rates can range from 9% to 30% per annum for eCommerce sector loans. However, the typical interest rate for eCommerce business loans can vary based on several factors:

• Interest rates can vary significantly based on the loan provider, loan amount, tenure, and purpose.
• Banks and Non-Banking Financial Companies (NBFCs) offer different interest rates based on their lending policies, cost of capital, and applicant’s perceived risk profiles.
• Loans for larger amounts, longer tenures, and against collateral usually have lower interest rates compared to small, short-term, unsecured loans.
• Newer eCommerce businesses and startups may be charged higher rates compared to established businesses with long operating history.
• Interest rates are also impacted by the prevailing economic conditions and the Reserve Bank of India’s (RBI) monetary policy stance. In periods of tight liquidity, rates tend to be higher.
• Some loan providers may offer discounted interest rates or processing fees for limited periods as part of promotional offers.
• The applicant/business owner's credit score and financial track record are key in determining the rate offered.