A business loan EMI calculator can help you estimate your monthly instalments and plan your finances better. Let us understand and explore how a business loan calculator works and how you can use it to your advantage when you apply for a business loans.
where
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.
Business Loan EMI Calculator Online
Principal Amount
Interest Amount*
Monthly EMI*
Payment Breakup
Total Payable Amount*:
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: Enter the loan amount you wish to borrow.
- Step 2: Enter the interest rate offered by the lender.
- Step 3: Enter the loan tenure in months or years.
- Step 4: Click on the 'Calculate' button.
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)
- 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%
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.How to Apply for a Business Loan Online?
- Step 1: Visit the bank's or lender's website and navigate to the 'Loan Application' section.
- Step 2: Click on the 'Business Loan' option and carefully fill out the online application form with relevant information.
- Step 3: Upload the required documents, such as ID proof, address proof, bank statements, etc.
- Step 4: Wait for the lender to verify your documents and approve your loan.
- Step 5: Once your application is approved, the lender transfers the funds directly to your bank account.
FAQ
Yes, a business loan EMI calculator can be used for various types of financing, such as term loans, working capital loans, equipment loans, and more.
Documentation requirements for business loans may vary from lender to lender, the most common of which are:
- ID proof
- Address proof
- Bank statements
- Business Registration Certificate
- Income Tax Returns
It may be difficult to get financing with a low credit score as most lenders require a minimum score of 700. However, some lenders like FlexiLoans provide desired working capital loans for lower credit scores at affordable interest rates.
The approval time for a loan can differ for different lenders. While some lenders may approve and disburse your loan within 24 to 48 hours, others might take up to a week to process the approval and release the funds.
Most lenders allow you to prepay your credit either partially or fully. However, some may charge a prepayment penalty. It is important to check the specific terms and conditions set by the lender before early fulfilment of your debt.
To improve your chances of getting desired funding, maintain a good credit score, repay existing debts on time, have a stable business with a consistent turnover, keep your financial documents up-to-date and provide collateral (if required).
No, using an EMI calculator is simply a tool for planning your finances. It does not affect your credit score in any way.
You'll need to input details like the loan amount, interest rate, loan tenure, and sometimes processing fees when using the EMI calcuator. Based on this information, the calculator will provide an estimated EMI for the entered loan amount.
To apply for a business loan, you need to satisfy the following criteria:
- Age: 21-65 years
- Business Vintage: Minimum 3 years
Annual Turnover: Minimum ₹20 lakh- Credit Score: 700 and above
Some lenders offer tailored business loan for women with reduced interest rates and added benefits. Multiple government schemes provide competitive collateral-free business loans for women, like Annapurna Scheme, Udyogini Scheme and Orient Mahila Vikas Yojana Scheme.
- Term Loan: A lump sum amount repaid over a fixed tenure
- Working Capital Loan: Short-term loan to fund day-to-day operations
Machinery Loan: Financing to purchase machinery or equipment- Overdraft: Credit facility to withdraw funds as needed
With an online business loan, you can get funds in your account within 24-48 hours of approval. This can be especially helpful if you need urgent funds for your business operations. Some additional advantages include:
- Quick and easy application process
- Minimal documentation requirement
- Flexible repayment options
- Competitive interest rates
A business loan can help you fund multiple operations like:
- Purchasing machinery and equipment
- Buying inventory and raw materials
- Expanding to new locations
- Managing working capital gaps
- Upgrading technology and infrastructure
FlexiLoans is a one-stop destination for quick business loans, offering minimal documentation and fast approval. With just a few clicks, you can apply online through a seamless digital process, making it an ideal choice for businesses in need of quick financial support.
Several factors influence your business loan EMI:
- Loan Amount: A higher loan amount leads to a higher EMI.
- Interest Rate: The interest rate directly impacts your EMI. Higher rates result in higher monthly payments.
Loan Tenure: Longer repayment tenures lead to lower EMIs, but you will pay more interest overall.- Repayment Frequency: EMIs can be paid monthly, bi-monthly, or quarterly, affecting your cash flow.