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There are a number of ways by which one can reduce the interest rate on a small business loan and this will help save a lot of money in the long run- money that can be again utilized effectively for the growth of the business. 

1. One has to prepare a good business plan that will ensure that the business is going to generate a steady revenue and see the best possible profit. This will help convince the lender about the future of the company and it is important for him to be convinced that the borrower will not end up being a defaulter. 

2. A good credit score is a must and one should work on it much before one applies for the loan. A good credit score is a reflection that the applicant is good with finance management and always makes his payments on time, which is a big advantage when one is trying to convince a lender. 

3. Most of the time, one applies for a loan with one lender, only to find out that another lender has better options when it comes loans because it is providing lower interest rate of business loan. One should be able to apply for a balance transfer is such cases so that one can get the advantage of lower interest in the future 

4. Before applying for a loan, make sure that the company has been around for a while and is doing well enough to give the impression to the creditor that his money is safe, and that the money would be used for further betterment of the company. A good business vintage is necessary and one should have the required documents to support it for lower interest rates. 

5. Make sure that one can make part prepayments without incurring extra charges and although this will not reduce the interest rate, it will keep on reducing the EMIs which is more or less the same as one can still end up saving money. 

6. Financers like Bajaj Finserv have Flexi Loan facilities and they have lower rates of interest, depending on the need and financial standing of the client. 

Looking for a competitive rate of interest on your business loan? You can try Bajaj Finserv which offers SME and MSME loans up to Rs. 30 lakh. The interest rates are highly competitive and you only need to provide two documents for getting your loan.

Also Read: 6 Ways to Reduce the Interest Rate on Your Small Business Loan