Business Loan EMI Calculator

Are you planning to avail of a business loan but not sure how much EMI you will have to pay? We have the solution for you. ...

Presenting, Money View’s Business Loan EMI calculator. We have designed our calculator to be extremely simple and hassle-free. All you have to do is input the principal amount, interest rate, and the repayment term and leave the rest to us.

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Your EMI

₹34,17,012

₹2,51,035

₹1,02,51,035

Loan Amount
|
20K
|
50L
|
1Cr
|
1.5Cr
|
2Cr
|
2.5Cr
|
3Cr
|
3.5Cr
|
4Cr
|
4.5Cr
|
5Cr
Rate of Interest
|
8%
|
12%
|
16%
|
20%
|
24%
|
28%
|
32%
|
36%
Tenure
|
1yr
|
2yr
|
3yr
|
4yr
|
5yr

Your EMI

₹34,17,012

₹2,51,035

₹1,02,51,035

  • Loan Amount

  • Total interest ₹ 26,00,611.62

EMI Schedule

Year Opening Balance Interest Principal Closing Balance
Jun '21 ₹ 1,00,00,000 ₹ 1,25,000 ₹ 32,92,012 ₹ 67,07,988
Jul '21 ₹ 67,07,988 ₹ 83,850 ₹ 33,33,162 ₹ 33,74,825
Aug '21 ₹ 33,74,825 ₹ 42,185 ₹ 33,74,826 ₹0.00

How does the Money View Business Loan EMI Calculator Work

Every loan, regardless of the type of loan it is, needs to be repaid through EMIs or Equated Monthly Installments. This amount is determined by the principal amount borrowed, the interest rate charged by the lender, as well as the repayment term was chosen by you, the borrower.

Knowing how much EMI to pay will help you plan out your finances effectively.

However, these calculations are error-prone if done manually which can potentially derail your finances. Therefore, in order to make the entire process hassle-free, the Money View Business Loan EMI calculator calculates and provides the EMI amount you will have to pay along with the amortization schedule (more on this below) in an instant. In order to use this calculator, follow the steps given below -

  •     • Enter the principal amount that you wish to borrow. This number can be adjusted by using the slider

  •     • Provide the interest rate charged

  •     • Lastly, enter the repayment term you wish to choose

Instantly, our calculator will let you know the EMI that you will have to pay.

Business Loan EMI Calculation Formula

The formula for calculating gold loan EMI is as follows:

P x R x (1+R)N / [(1+R)N-1]

Where,

    • P stands for Principal Amount that is borrowed.

    • R stands for Rate of interest imposed.

    • N stands for Number or tenure in number of months.

For example, if Rs. 15,00,000 is the amount borrowed (P), 18% is the rate of interest imposed (R), and the 36 months is the tenure (n), the EMI to be paid using the above formula will be:

15,00,000 x 0.015 x (1+0.015)36 / [(1+0.015)36-1] = Rs. 54,229 (per month)

The rate of interest (R) is calculated monthly i.e. it is calculated as (Annual Rate of interest/12/100) in this case (18/12/100 = 0.015)

Business Loan Amortization Schedule

Apart from the EMI amount, it is important to also know your amortization schedule. This is essentially a table that shows the amount of principal and interest left in each payment until the loan is fully repaid.

For eg. in the case mentioned above, for a principal amount of Rs.15,00,000 with interest rate and repayment tenure being 18% and 36 months respectively, the EMI amount based on the formula is Rs. 54,229 per month. The table below illustrates the amortization schedule of this loan in detail.

Year Opening Balance EMI Paid for Each Year (Principal + Interest) Closing Balance
Interest Repaid Principal Repaid
₹15,00,000
₹2,36,964
₹4,13,779
₹10,86,221
₹10,86,221
₹1,56,021
₹4,94,722
₹5,91,499
₹5,91,499
₹59,244
₹5,91,499
₹0.00

Factors Affecting Business Loan Interest Rates

Given below are some of the most important factors that impact business loan interest rates -

  •     • Credit Score

If you have a high credit score then you will be able to avail of a loan at competitive interest rates. This is because a high credit score indicates good creditworthiness and therefore the risk of default is less.

  •     • Type of Business

The riskier the business, the higher is the rate of interest charged. If the business you wish to undertake guarantees profits early with less risk then you can avail of the loan at a lower rate of interest as the chances of you defaulting on the loan payment in such circumstances is low.

  •     • Business Experience

While entrepreneurs do not need an age limit, those with more business experience tend to avail loans at a lower interest rate. This is again because they may be better suited to dealing with the unpredictable nature of businesses and hence reduces the risk for lenders.

  •     • Loan Amount and Repayment Tenure

As is the case with every other loan, the amount availed and repayment tenure chosen will impact the rate of interest. The low loan amount and a shorter repayment period will attract lower rates of interest as the perceived risk for defaulting is low.

Business Loan EMI Related FAQs

A business loan is a secured or unsecured loan that is availed for the sole purpose of helping your business. This loan can be used as an investment to fund your growing business. Sometimes a business loan is also referred to as a commercial loan.

An EMI or Equated Monthly Installment refers to the amount paid every month by the borrower to the lender in order to repay the loan. This amount can vary depending on the amount availed as a loan, the interest rate charged, and the repayment term chosen.

Most business loans are secure i.e., they are provided against collateral. This can also reduce the interest rate charged on the loan. However, if you are looking for an unsecured loan for your business wherein you do not have to provide collateral, you can apply for a personal loan from Money View at competitive rates.

Foreclosing a loan depends on the lender. Certain loan providers allow borrowers to foreclose their loans only after a certain number of EMIs have been paid. Additionally, some may even charge a penalty for foreclosure. As a borrower, you are advised to check with your lender regarding the same.

EMI calculation is an important step that must be taken before availing of a loan. Doing so will help you plan your finances better. Additionally, doing this calculation manually is a process that is prone to errors. Therefore opting for a hassle-free EMI calculator such as the one provided by Money View is the solution. Some of the advantages of using our EMI calculator are -

  •     • Easy to use and provides instant results
  •     • Free of cost
  •     • Accessible 24/7
  •     • Provides an amortization schedule to help you plan your finances better

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