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Business Loan EMI Calculator

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Business Loan Loan EMI Calculator
Loan EMI
Total Interest payable
Total Payment
(Principal + Interest)
Break-up of Total Payment
Interest Amount (₹64,888)
Loan Amount (₹5,00,000)
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Rate of Interest is high ?

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Business Loan EMI Calculator Details

Business Loan EMI Calculator

Those who are engaged into business be it small or large, at times they feel the need of hands full of cash inflow to feed their production unit. So they choose to borrow the money from banks or NBFCs at a reasonable interest rate. The loan amount that you totally spend on your business and business related activities is your business loan.

Why do you need business loans?

Business loans are mandatory in any business. These are used for many reasons. The main reason to avail business loan is to enhance the growth of the company. Business loans are not like overdrafts. They are for long terms unlike the overdrafts. Service promotion, investment in land or property that is required for the business, for long term research work and such things that require long term business loans. Mostly the entrepreneurs avail business loans to give financial support to plan the future of the company.

Business loans are to be repaid in tentative times set by the banks and NBFCs whichever is your lender. There are three things that are important to consider in business loans, they are loan amount, Tenure and finally the interest rate.

What is Business Loan EMI?

EMI stands for Equated Monthly Instalment. This is the amount that is to be paid by the customer every month. EMI is a specific fixed amount of money that needs to be paid to the lender until the tenure of the loan amount is over. EMI is being calculated following a simple EMI calculator that contains the three major variables that is loan amount, interest rate and time period of the loan.

What is Business Loan EMI Calculator?

Business Loan EMI Calculator is a specific calculator that you need to know how much money you are required to pay to your lender each month. As for example let us assume you have taken loan amount of Rs. 1, 00, 000/- for the tenure of 2 years at the rate of 14%. So according to this information you will need to pay the total amount of Rs. 1, 15, 230/- including the 2% processing fee.

Now the calculation for the EMI of this will be:

EMI = L.i. (1+i) n / {(1+i) n – 1}

  • P = Total Loan Amount
  • i = Rate of interest
  • n = Tenure of the loan

The EMI Calculator for the business loan is used as per the formula given above. The interest amount is being calculated every month afresh as the principal amount gets decreased. The breakage of the total payable amount is given below in the tabular form. As the months pass the portion of principal amount gets decreased so is the interest amount as the interest is calculated on the basis of reduced loan amount on every month.

Why do we need to calculate EMI for Business Loans?

Business is a risky place and probably many of you don’t have fixed cash inflow per month. It is good to be prepared for the future expenses. If you already know how much you need to pay every month before applying for the loan you will be prepared to take the financial decision more aptly.

For a business person it is not an easy task to take financial decisions as they don’t get their fixed salary credited to their bank account every month. So it is important for the entrepreneurs to get clear idea about the fixed expenses and debts as they don’t have fixed income every month.

Part-payment in Business Loans

As we have mentioned earlier that business loans are needed for the growth of the company. Now there can be any situation where you need money to take some business strategy or opportunity to make profitable business. Then you need business loans to support the strategy you are taking. After availing the loan you will get a fixed tenure to repay the outstanding.

Business is a speculation and you can experience anything at anytime. Think of a situation where you make unexpected profits in your business. The first thing that you will do is to repay the loan that you have taken for your business. We will help you here. If you want to repay the loan in parts or completely before completion the tenure period then we will help you here. If you make a part repayment beforehand then the portion of your loan amount will get decreased and hence the monthly interest payment will go down as well. This will help you to lowering down the tenure period of your loan.

Business Loan Frequently Asked QuestionsView All

When is my EMI due?

The EMI will be due on a permanent date each month. You will be alerted of this time when your loan amount is paid.
The lowest EMI amount is INR 2,035 for every INR 100,000.
The lowest EMI amount is INR 2,327 for every INR 100,000.
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