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Business Loan EMI Calculator

Contemporary small to medium-sized business enterprises (SMEs) serve as the backbone of the Indian economy. These businesses are growing at a breakneck pace considering the massive demand for their products and services amongst the customers. Nevertheless, the main problem with SMEs in India is that they generally do not have sufficient capital to conduct their work procedures smoothly. Hence, opting for a business loan becomes inevitable for them.

These enterprises use the money generated through loans for varied requirements, such as business expansion, working capital management, and other business operations. These loans, which can be repaid in equated monthly installments (EMIs) at fixed rates, can get a little challenging to deal with in the absence of a business loan EMI calculator. Here, we will understand how a business loan calculator can prove to be advantageous for borrowers.


What is a Business Loan EMI?

The EMI calculator is a free online tool that assists you in determining the monthly payment required to repay your loan. The term EMI, or Equated Monthly Installment, relates to the monthly payments made to the loan provider. Typically, an EMI is composed of two components: the principal sum borrowed and the interest accrued. Interest is measured based on the interest rate quoted at the time of loan disbursement.

You will use the EMI calculator to determine your EMI by simply entering the amount of your business loan, the duration of the loan, as well as the rate of interest. By using the business loan calculator India, you can schedule your payments accordingly, handle your other bills, and repay the loan easily.


How Does an Business Loan EMI Calculator Work?

Business loan EMIs are calculated using a very easy formula.

Emi calculate formula = P x r x (1+r)n / (1+r) n-1

Here,

E = EMI amount

P = Principal amount

r = Rate of interest 

n = tenure of the loan 

Since manually calculating the monthly EMI amount can be time-consuming, businesses have developed EMI loan calculators. You just have to input your loan number, loan tenure, and interest rate, and your EMI will be shown, along with the overall interest you must pay. It does all the hard work for you, so you can focus on preparing your loan application and keeping all of your paperwork in order.

Let us understand using an example:

  • Business loan amount = ₹ 2 lakh
  • Interest rate = 20%
  • Tenure = 3 years
  • As per the formula interest rate per month will be 20/12= 1.66%
  • Total tenure in months = 3x12 = 36 months

Therefore:

EMI= [2,00,000 x 1.66/100 x (1+1.66/100) ^ 36 / [(1+1.66/100) ^ 36 – 1)

You will get your EMI= Rs. 6,666

This approach is not only time-intensive but also vulnerable to human error. As a result, it's safer to use an online loan EMI calculator, which can be found easily online.


Factors That Affect Business Loan EMI

You have measured your average EMI amount, but find that it is too high for you, and you are now wondering how to lower your monthly EMI payment. That is logical; to understand properly how to reduce the EMIs, it is necessary to understand how they work. When you adjust one or two of certain variables, your EMI will decrease. The main factors affecting the amount of your monthly EMI are as follows:

  • Interest Rate

    Without a doubt, the interest rate plays a significant role in determining the sum of your EMI. As previously mentioned, the monthly EMI consists of two components: the principal amount you are paying back per month and the compounded interest measured at the interest rate at which you are borrowing the loan.

    Interest rates are a key business driver for banks and financial institutions since the lower the interest rate, the more consumers would come into the bank to get a loan. It is essential, however, to investigate all future interest rates from all lenders. After conducting adequate research, choose the one that is most appropriate for your loan amount. Bear in mind that the higher the interest rate, the higher the EMI; conversely, the lower the business loan interest rate, the lower the EMI.

  • Loan Tenure

    The second significant aspect affecting the volume of the EMI is the loan tenure. It applies to the period over which you can repay the full principal value of your loan. A longer debt term means that the principal repayment balance is spread out for a longer period, resulting in a smaller interest. However, it is important to realise that your interest will continue to grow as the tenure lengthens.

    This is a perilous condition that requires much consideration and deliberation. On the one hand, the amount of principal you repay per month decreases as the debt term lengthens, but the accumulated interest still increases. Utilize the unsecured business loan simulator to experiment with various loan maturity and interest rate combinations to determine which is the perfect fit for you.

  • Loan Amount

    Finally, but certainly not the least, the loan amount itself plays a significant role in EMI calculations. Given that the principal loan amount serves as the basis for calculating the EMIs, as mentioned in the formula above, it is logical to adjust your loan amount slightly.

    As a company, you have a variety of financial requirements, which is why the loan sum is not something you want to negotiate. This is where the advantages of a loan instalment calculator become apparent. Enter the loan sum you desire, the tenure you desire, and the interest rate you desire and adjust one or more of these variables to determine the amount you are satisfied with.

Benefits of Using a Business Loan EMI Calculator

Using business loan EMI calculators have numerous advantages that we will see now.

  • Simplified Calculation

    The calculation is what keeps the universe turning. It is essential to measure your EMI amount before finishing the loan's procedures. And everything is calculative. Therefore, unless you are one of those customers who has applied for a loan, you must enter the loan number, interest rate, loan term, and processing charge. The business loan calculator will perform the required calculations and provide you with the estimated monthly payment rate. The loan amount calculator will determine the maximum amount that you will borrow.

  • Access the calculator at home

    The best feature of an online EMI calculator for business loan, term loan & msme loan is that it could be used any time, anywhere. You can also use the calculator an infinite number of times at your leisure. That is far superior to visiting the bank and attempting to solve complicated mathematical equations that may make you lose your mind. If it is not unreasonable, just connect to the internet from your home and use the EMI calculator.

  • Time-saving

    If you intend to rely on manual calculations to determine the particulars of your loan amount and interest rate, you would be wise to avoid this time-consuming path. It would put your patience to the ultimate test at each point. Choose an online loan EMI calculator instead because it operates seamlessly and quickly, showing results in the blink of an eye. Collateral free business loan preparation entails accurate estimates, and so there is no room for error with the figures. A business loan EMI calculator will always give you the right answer.

  • Compare various lenders

    Another benefit of estimating your monthly instalments in advance is that you can compare the EMI sums offered by various lenders. This will assist you in selecting the appropriate lender and making an educated decision before obtaining a small business loan.

Flexiloans EMI calculators provide an easy method to calculate your EMI. It is easy to use and being an online tool, can be operated at your convenience. It will also give you insights on better management of your loan and its repayment.


Frequently asked questions

What are the purposes for which I can get a loan via FlexiLoans?

FlexiLoans is here to provide you financial access for your business funding needs. You have to undergo simple and transparent Credit Evaluation, basic documentation before we disburse the loan. You may get loans via FlexiLoans for:
  • Expanding your business
  • Servicing regular working capital needs
  • Managing seasonal working capital requirements
  • Manage short term cash flow gaps

Why should I avail loan via FlexiLoans?

Quick credit assessment ensures fast disbursal of loan at best rates and flexible terms, thus providing financial access at a click! Our business is to help you grow your business.

What documents are required to apply for a loan?

KYC document

  • - Pan card

Proof of residential address (any one)

  • - Rent Agreement
  • - Driving License
  • - Voter's ID
  • - Ration Card
  • - Passport

Banking

  • - Last 6 months of bank statement of current account

Business KYC (any one)

  • - GST Registration Certificate
  • - Shop Establishment Certificate

Financial documents (For loans greater than 20 Lakhs)

  • - 2 years Audited financials
  • - Last 2yrs ITR
  • - GST Returns of 6 months

Are there any charges other than interest rate that I have to pay to avail the loan?

We may charge processing fee to facilitate the loan towards legal and documentation charges. You may be charged penal charges for late or irregular payment behavior.

Why will a person opt for an unsecured business loan?

You do not need collateral in an unsecured business loan; you can get a business loan only based on your business performance. Therefore it's less risky and hassle free.

Who can get a business loan?

At FlexiLoans to those businesses whose business has been running for at least 1 year and has monthly total sales of at least ₹2,00,000.

How is interest rate calculated on a business loan?

  • Business Loan interest rate is calculated basis- E = P * r * (1+r)^n / ((1+r)^n-1).
  • Here, P signifies principal loan amount, r signifies the interest rate, n stands for tenor in months and E signifies the EMI amount.
  • You can use the FlexiLoans EMI Calculator to check the interest payable, EMI amount and more.

Why is it important to calculate EMI before taking out a business loan?

Small to medium-sized businesses (SMEs) and even people considering business loans usually have a specific loan duration and amount in mind. An EMI calculator can be extremely beneficial, particularly for those who are new to business loan borrowing. These calculators offer three different options: loan interest rate, loan number, and loan tenure. One of the most significant advantages of business loan calculators is that they allow borrowers to calculate their loan EMIs in the simplest manner possible. They merely need to enter the loan number, interest rate, and term of the loan to obtain immediate results. The calculator determines the monthly contributions that must be made by companies that avail of the loans.

What if I miss the EMI payment?

  • Negatively affects credit score: It is the most well-known real consequence of failing to make an EMI payment. When you miss a payment, it is reported on your credit report as a minor or major default. As a consequence, your credit score is negatively impacted.
    Borrowers assess your creditworthiness based on the credit report. Once they discover this negative mark on your credit report, they are unable to accept your loan application. Furthermore, even though your loan application is approved, you will be charged a higher interest rate.

  • Penalties with late fees: Numerous lenders charge late fees when a creditor fails to make an EMI payment on time. The fee is generally between 1% and 2% of the EMI. You must pay the missing EMI, plus the penalty, and the following month's EMI in the next term.

How is business loan EMI calculated?

The EMI for a business loan is measured using the loan amount, the interest rate quoted at the time of disbursement, and the loan's overall term. The EMI calculator for a business loan is an extremely valuable method for financial planning.

Can the EMI Amount and Interest Be Reduced?

Yes, the EMI amount and interest can be reduced as the loan EMI calculator assists in determining the loan's expense in terms of EMI. Once the estimate is complete, if the EMI is greater than what the borrower can afford, he or she can change it by increasing the loan tenure or decreasing the loan number. Additionally, measuring the EMI is a time-consuming operation that benefits from the use of an online EMI calculator. It streamlines and expedites the EMI calculation operation.

What will be my monthly EMI?

The EMI calculator formula applies to a variety of loan types. The three factors that determine the EMI value are the loan amount, the loan tenure, and the interest rate. The EMI is equal to both the loan volume and the interest rate.

Quick credit assessment ensures fast disbursal of loan at best rates and flexible terms, thus providing financial access at a click! Our business is to help you grow your business.

KYC document

  • - Pan card

Proof of residential address (any one)

  • - Rent Agreement
  • - Driving License
  • - Voter's ID
  • - Ration Card
  • - Passport

Banking

  • - Last 6 months of bank statement of current account

Business KYC (any one)

  • - GST Registration Certificate
  • - Shop Establishment Certificate

Financial documents (For loans greater than 20 Lakhs)

  • - 2 years Audited financials
  • - Last 2yrs ITR
  • - GST Returns of 6 months

We may charge processing fee to facilitate the loan towards legal and documentation charges.

You do not need collateral in an unsecured business loan; you can get a business loan only based on your business performance. Therefore it's less risky and hassle free.

At FlexiLoans to those businesses whose business has been running for at least 1 year and has monthly total sales of at least ₹2,00,000.

  • Business Loan interest rate is calculated basis- E = P * r * (1+r)^n / ((1+r)^n-1).
  • Here, P signifies principal loan amount, r signifies the interest rate, n stands for tenor in months and E signifies the EMI amount.
  • You can use the FlexiLoans EMI Calculator to check the interest payable, EMI amount and more.

Small to medium-sized businesses (SMEs) and even people considering business loans usually have a specific loan duration and amount in mind. An EMI calculator can be extremely beneficial, particularly for those who are new to business loan borrowing. These calculators offer three different options: loan interest rate, loan number, and loan tenure.

One of the most significant advantages of business loan calculators is that they allow borrowers to calculate their loan EMIs in the simplest manner possible. They merely need to enter the loan number, interest rate, and term of the loan to obtain immediate results. The calculator determines the monthly contributions that must be made by companies that avail of the loans.

  • Negatively affects credit score: It is the most well-known real consequence of failing to make an EMI payment. When you miss a payment, it is reported on your credit report as a minor or major default. As a consequence, your credit score is negatively impacted.

    Borrowers assess your creditworthiness based on the credit report. Once they discover this negative mark on your credit report, they are unable to accept your loan application. Furthermore, even though your loan application is approved, you will be charged a higher interest rate.

  • Penalties with late fees: Numerous lenders charge late fees when a creditor fails to make an EMI payment on time. The fee is generally between 1% and 2% of the EMI. You must pay the missing EMI, plus the penalty, and the following month's EMI in the next term.

The EMI for a business loan is measured using the loan amount, the interest rate quoted at the time of disbursement, and the loan's overall term. The EMI calculator for a business loan is an extremely valuable method for financial planning.

Yes, the EMI amount and interest can be reduced as the loan EMI calculator assists in determining the loan's expense in terms of EMI. Once the estimate is complete, if the EMI is greater than what the borrower can afford, he or she can change it by increasing the loan tenure or decreasing the loan number. Additionally, measuring the EMI is a time-consuming operation that benefits from the use of an online EMI calculator. It streamlines and expedites the EMI calculation operation.

The EMI calculator formula applies to a variety of loan types. The three factors that determine the EMI value are the loan amount, the loan tenure, and the interest rate. The EMI is equal to both the loan volume and the interest rate.