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Disclaimer : The above calculator with graph & below table provide an approximate calculation of the EMI ( Equ... Read More
Our business loan EMI calculator helps you plan your monthly budget and expenditure, as it gives you a realistic picture of your monthly obligations. This is a powerful tool that helps you make sound decisions regarding your business loan amount and tenure.To calculate your business loan eligibility, you can use a business loan eligibility calculator.
Our business loan EMI calculator is super easy to use. All you need to do is enter the tenure, rate of interest, and total loan amount. With these three quick steps, you can determine the EMI amount in seconds. Here is a step-by-step guide for using the calculator:
As your trusted lending partner, we are always looking to improve what we offer as services and solutions. The SMFG India Credit business loan EMI calculator is simple but is extremely helpful in making the best of every business opportunity with the right financial estimates and plan each time.
The business loan EMI is calculated based on your loan amount, the interest rate quoted at the time of disbursal and the total tenure of the loan.
By using an online business loan EMI calculator, you can arrive at a realistic figure of your total monthly obligation, which can help you to decide on the loan tenure and the loan amount beforehand. The following is the business loan EMI calculation formula:
EMI for Various Loan Tenures
Disclaimer: These are approximate EMI calculations, actual numbers may vary.
You can also calculate the EMI of a business loan using the below formula.
EMI = PxRx(1+R)n/(1+R)n-1
Where, P = Loan Amount
R = interest rate
n = repayment period
The business loan EMI calculator is a very useful tool for financial planning. By exploring different scenarios, it helps to plan your finances and make better financial decisions.
The interest rate is the amount of charge that the lender charges for the amount lent and is expressed in percentage of the principal. Let’s have a look, how is business loan interest calculated.
Normally, two types of interest rates are quoted to the borrower, the nominal interest rate and the APR.
The nominal interest rate is the annual rate of interest charged by the lender, whereas, APR is the annual total cost of the loan that includes interest cost, processing fee, administrative fee and other costs.
And, the effective interest rate reflects the true cost of the loan considering compounding. The formula for the effective interest rate is (1+r^n)-1, where r is the periodic rate of interest.
The calculation of business loan EMI amount is affected by the following factors:
Loan Amount: It is the primary factor and the base for calculating the monthly loan instalment amount. With an increase in the loan amount, the EMI amount also tends to increase proportionally.
Rate of Interest: It is a very important component and is determined based on your income, credit score, the financial statement of the business, and repayment capability.
Loan Tenure: The loan tenure has the maximum impact on the EMI amount and it is the time taken to repay the entire loan amount including interest. An increase in tenure will result in low EMI amount, but will also increase the interest component.
When you take up a business loan, you can choose to repay the principal amount with interest on a monthly basis as per a pre-agreed upon schedule during the tenure of the loan. This monthly amount which comprises of both principal and interest components, is called the business loan EMI. For example, if your principal amount is INR 48,00,000 at an interest rate of 21% for a repayment tenure of 24 months, then you will be paying the lending institute an amount of INR 2,30,462 over the 2 years. Use our business loan EMI calculator to know more.
Since EMI stands for Equated Monthly Instalments, the amount will remain constant throughout the period of repayment time. However, if you choose the prepayment option for the loan, then your EMI can change. This option is mostly used by mortgage loan borrowers who choose to increase their EMI amount after a few years in case of increase in monthly income, or full repayment of any other existing debts. Similarly, EMI amount may change in case of change in floating rate of interest or planned loan restructuring. It's always a good idea to carefully review the terms of the loan and discuss any potential changes with the lender before agreeing to the loan.
The formula for calculated EMI is:
EMI = [P*R*(1+R)^(n*12)]/[(1+R)^(n*12)-1]
Where P is the principal amount that you borrowed,
R is the rate of interest per year,
N is the number of years.
You can use our EMI calculator to know your EMI amount for a given loan amount, tenure & interest rate instantly.
For a business loan of INR 75 Lakhs* with an interest rate of 14% and a tenure of 48 months, the calculated Equated Monthly Installment (EMI) is INR 2,04,949. This EMI amount indicates the fixed monthly payment the borrower needs to make towards loan repayment throughout the loan tenure.
To calculate EMI using a business loan EMI calculator, follow these steps: Use the slider to select the loan amount, choose the loan tenure, and enter an appropriate interest rate based on your business profile. The calculator will then generate the EMI amount, helping you plan your finances better.
Using a Business Loan Calculator EMI is crucial as it provides a clear understanding of the monthly repayment amount. By calculating the EMI beforehand, borrowers can assess their affordability and plan their budget effectively. It helps in making informed financial decisions, preventing any financial strain during the loan tenure.
Business loan EMI is influenced by the loan amount, rate of interest, and loan tenure. To lower the EMI, borrowers can consider opting for a shorter tenure, which increases the monthly installment but reduces the overall interest paid. Having a strong credit history and negotiating for a lower interest rate or making a higher down payment can also help in reducing the EMI amount.
The mode of repayment for the monthly EMI is through digital payment platforms like PayTM and Billdesk. These platforms offer convenience and ease of transaction, allowing borrowers to make timely payments from their preferred choices.
Calculating EMI before taking out a business loan is essential as it helps in assessing the financial feasibility of the loan. By knowing the EMI amount in advance, borrowers can gauge whether they can comfortably manage the repayment without compromising their business operations. It aids in making an informed borrowing decision and prevents the risk of defaulting on loan payments.
* Terms and conditions apply
** Subject to foreclosure charges. Terms and conditions applicable.