Business Loan EMI Calculator

What is a Business Loan EMI Calculator?

An EMI for business loan calculator is an online tool for calculating the Equated Monthly Instalment (EMI) for your business loan. The calculator takes into account factors like the loan amount, business loan interest rate and loan tenure to give you an estimate of your monthly payments.

How to Use a Business Loan EMI Calculator?

• Step 1: Visit the FlexiLoans’ calculator
  webpage https://flexiloans.com/calculators/business-loan-emi-calculator
• Step 2: Enter the interest rate offered to you by FlexiLoans.
• Step 3: Enter the loan tenure in months.
• Step 4: View results. You will get the Payment Breakup – Interest Amount, Monthly EMI
• Step 5: Click on “Apply Now for a Business Loan”

With the details entered, the calculator will instantly generate the EMI amount, total interest payable and the total amount payable (principal + interest). You can easily check your business loan eligibility and calculate the EMI using the FlexiLoans Business Loan EMI Calculator.

How is Business Loan EMI Calculated?

The formula for calculating business loan EMI is:
where

• E = P x r (1+r)^n / ((1+r)^n-1)

• E: Total monthly payment (including principal and interest)
• P: Principal amount of the loan (original amount borrowed)
• r: Monthly interest rate (annual rate divided by 12)
• n: Total number of payments (loan term in months)

Consider,

• P = ₹5,00,000 (Principal amount)
• Annual Interest Rate = 10%
• Loan Tenure = 3 years (36 months)
• r = Annual Interest Rate / 12 = 10 / 12 = 0.00833%

Consider,
E = 500000 x 0.00833 (1 + 0.00833) ^36/ (1+0.00833)36−1 =16,060
The EMI for a loan of ₹5,00,000 with a 10% annual interest rate and tenure of 36 months is approximately ₹16,060 per month.

Benefits of using a Business Loan EMI Calculator

• Budget Planning: Know your exact monthly payments in advance, so you can plan your budget and manage your cash flow better without surprises.
• Clear Interest Overview: Get a detailed estimate of the total interest you'll pay over the loan period, helping you plan your finances more effectively.
• Compare Loan Offers Easily: Easily compare loan options with different interest rates and tenures, ensuring you get the best deal for your business.
• Smart Decision-Making: See how changes in loan amounts or rates affect your finances, allowing you to make well-informed decisions.
• Save Time and Effort: Skip the manual calculations and get quick, accurate results so you can focus on growing your business.
• Affordability Check: Ensure your loan fits your budget by assessing how much you can comfortably repay each month according to your cash flow.
• Smooth Loan Application: With probable EMI estimates in mind, you’ll have more productive discussions with lenders, making the loan approval process quicker and easier.

Factors That Affect Your Business Loan EMI

1. Loan Amount

The larger the loan amount, the higher your EMI will be. Additionally, various loan types come with different EMI structures and repayment terms. It’s crucial to borrow only what you need, ensuring you can comfortably manage the repayment.

2. Interest Rate

The interest rate is a crucial determinator for your EMI. A higher interest rate for business loans means a higher EMI, and vice versa. Compare interest rates and hidden charges (if any) from multiple lenders before you choose the one that best suits your needs.

3. Loan Tenure

The loan tenure is the period over which you will repay the loan. A longer tenure means lower EMIs but higher total interest payable. A shorter tenure means higher EMIs but lower total interest payable. It is essential to pick a tenure that balances your monthly cash flow with the total interest outgo.

Step-by-step Guide to Applying for Business Loan

• Step 1: Click on “Apply Now” on this page
• Step 2: Fill out the form. Enter Your Name and 10-digit Mobile Number, Business GST registered(YES/NO), Select Average Monthly Sales and Click on “Check Eligibility”
• Step 3: Enter OTP that received on your mobile. Upload the required documents, such as ID proof, address proof, bank statements, etc.
• Step 4: Wait for the FlexiLoan’s team to verify your documents and approve your loan.
• Step 5: Once your application is approved, the loan amount will get transfers directly to your bank account.

Some lenders may also require additional documents, such as business registration certificates and income tax returns. Ensure to carefully read and check the specific requirements mentioned by the bank or the creditor before submitting your application and avoid delays or rejections.