Find Out the Interest Rate on a Kabbage Loan Before You Apply – How high of an interest rate does Kabbage charge on its loans? You’ll need to know that figure before you apply, but some basic math can help you find out quickly.
After all, Kabbage isn’t the only place you can get a small business loan from; you’ll want to compare rates and terms with another lender before you settle on one option or another.
Let’s take a look at the Kabbage interest rate, then go over some more information about Kabbage loans in general.
3 Main types of personal loans
If you’re wondering what is the interest rate on a Kabbage loan, or what kind of personal loans are available, you have three main types to choose from.
A personal loan is an unsecured loan that can be obtained with poor credit and does not require collateral.
The three types of personal loans are secured personal loans, unsecured personal loans, and signature loans. For example, if you have bad credit and don’t want to put up any collateral for your borrowing needs, an unsecured loan might be right for you.
If your credit score is fair or better and you want more flexibility in how much money you borrow, then it might be best to go with a secured personal loan so that they can take away assets in case of defaulting on payments.
2 Important factors to consider when applying for a Kabbage loan
There are two important factors to consider before applying for a loan from Kabbage. First, it is important to understand what type of loan you want.
The different types of loans available with Kabbage are merchant cash advances, inventory financing, and invoice factoring.
After deciding what type of loan you want, it’s important to know the interest rate that will be charged.
The current interest rates for all three types of loans vary depending on your credit score and risk profile. For example, if you have an excellent credit score (740+), then you will qualify for a 5% APR while someone with average or poor credit scores might get a 30% APR or higher if approved at all.
What Is the Interest Rate on a Kabbage Loan?
Interest rates range between 2.7% – 29.99%, and they depend primarily on your creditworthiness as determined by either your FICO Score, which ranges from 300-850; Experian’s National Equivalency Score (NES) also ranges from 300-850; or Equifax Beacon Score, which ranges 600-900.
Choosing between a secured loan and an unsecured loan
What is an unsecured loan? An unsecured loan is when you provide collateral to secure your loan.
If you don’t repay, then the lender can take your collateral in order to cover what they are owed.
What is a secured loan? A secured loan requires that you put up some sort of property or asset as collateral for the amount being borrowed.
The borrower retains ownership of their property, but if they default on their payments, then it can be repossessed by the lender.
Kabbage offers loans for businesses at rates as low as 10% APR (annual percentage rate) and offers loans from $500 – $250,000 with no fees.
The interest rate on these loans varies depending upon how much money you borrow and how long you have to repay the loan.
Understanding the interest rate of your Kabbage loan
The interest rate of a loan from Kabbage is not fixed; it varies with your credit score.
If you want to know what the interest rate will be before you apply, we recommend checking your credit score.
The higher your credit score, the lower the interest rate you’ll pay. And if you’re wondering what that means in terms of dollars and cents – it can save you thousands of dollars over time!
What’s the Interest Rate on a Kabbage Loan?
The interest rate for loans through Kabbage vary based on an individual’s credit score. In general, however, people with higher scores are offered lower rates than those with low scores.
How Much Does it Cost?
It costs $19 per month to borrow up to $2,000 through Kabbage. But there are no application fees or origination fees, so you only pay back what you borrow plus the interest charged by your lender at the end of the term (up to 30 days).
If you have excellent credit then you may qualify for a 0% APR loan–the best kind possible when borrowing money because this means there is no cost associated with borrowing funds for your business!
With the Kabbage Loan Interest Rate starting as low as 7.9%, you can get instant funding while saving tens of thousands of dollars in finance charges.
A few things you should know about late fees
Late fees are applied to your account if you do not pay your balance in full by the due date. For example, if you have an $800 loan and the repayment amount is $160 per month, but you only make payments of $150 per month, then your balance will grow and so will your late fee.
The first time this happens it’s usually just a warning with no late fee applied. However, there is also a minimum monthly payment requirement which may prevent you from being eligible for future loans.
If the minimum monthly payment requirement is set at 50% of what your total outstanding balance is, then you’ll need to be making at least $320/month in repayments (50% of 800) in order to be eligible for any more loans until that amount has been repaid.
If the minimum monthly payment requirement is set at 25%, then you’ll need to be making at least $640/month in repayments (25% of 800) in order to be eligible for any more loans until that amount has been repaid.
What is the interest rate on a Kabbage Loan? Find out what interest rate you qualify for before applying for one!