Udyam Interest Rate and Tenure

Glance through the details about Udyam Flex Loan interest rate, tenure, charges, and more.

• Annual Percentage Rate (APR) : Ranges from 18% to 48%
• Tenure : Ranges from 6 months to 18 months
• One-time Processing Fee : 2.5% of Loan Amount (Max Rs 4,000)
• Late Fee : Rs. 150 /- per installment if it is unpaid within 3 days of due date
• Auto-Debit Failure (Bounce) Fee : Rs. 60 /- per instance of auto debit failure
• Pre-payment penalty : Rs. 0

Payment Example*

For an approved loan amount of Rs. 1,00,000 at an interest of 28% for a tenure of 12 months, the total of interest paid would be Rs. 15,845.38. This translates to a maximum APR of 33%.

Example of the structure of a MSME loan taken from the Udyam Flex Loan app is as follows:

• Approved Loan Amount = Rs. 1,00,000
• Amount Disbursed: Rs. 97,500
• Interest Rate: 28%
• EMI Amount: Rs. 9,653.78
• Tenure: 12 Months
• Processing Fee: 2.5%
• Total Charges (including GST and insurance): Rs. 2,500
• APR: 33%
• Total Repayment Amount: Rs. 1,15,845.38
• Total Interest Paid = Rs. 15,845.38

*The above example shows the schedule for a business owner who makes all the suggested payments on time. Interest Rate varies based on the risk profile of the business owner. If you meet our simple loan eligibility criteria, you will receive instant credit in your bank account on the same day.