Low rate business loans are provided to all types of people for meeting variety of expenses towards their trade. However, just on applying for these loans is not going to give you the finance at desired rates. Instead you are supposed to meet certain conditions, and you must go well prepared to avail the benefits of the loan.These loans are provided at low rate of interest to the business people, against their residential or commercial property. The property has to be pledged for collateral with the lender. This means that you should be prepared to put the asset at stake. Collateral cuts the lender’s risks, but to avail the loan at low rate, still you must be having an excellent or good credit history. A high risk borrower with a bad credit record will be offered a secured loan at higher rate than a good credit borrower. Therefore, in case of a bad credit record, apply for these loans with an improved rating on paying off some debts.You must also be having a good repayment capability. This means that your business should be in a good position of repaying the installments of the loan on time. So, make a convincing repayment plan, giving details of your business earnings and spare money that you can have each month for repaying the loan. You can borrow any greater amount, depending on value of the property that you pledged for collateral. The loan can be repaid conveniently in 5 to 30 years.However, if you need only smaller amount, then it can be borrowed as unsecured business loan, without providing anything for collateral. But the rate will be little higher. Still, once you start comparing number of offers of low rate business loans, you can find a loan at comparatively lower rate, if you have a good credit record. Hence, it is essential that you approach the lenders with an acceptable credit rating to avail the loan.