October 5, 2023
Tax Benefit
Upto Rs. 46800
Tax Benefit
Upto Rs. 46800
Tax Benefit
Upto Rs. 46800
Know The Benefits of Using a Business Loan EMI Calculator
A Business loan EMI calculator is a tool that helps to know the monthly instalments to be paid, making repayment hassle-free. The business loan EMI calculator is an online tool that calculates the loan EMI before applying for a business loan.
Know The Benefits of Using a Business Loan EMI Calculator
A Business loan EMI calculator is a tool that helps to know the monthly instalments to be paid, making repayment hassle-free. The business loan EMI calculator is an online tool that calculates the loan EMI before applying for a business loan.
How does Business Loan EMI Calculator Work?
The Business loan EMI calculator uses the reducing balance method to calculate the loan EMI and total interest payable using principal, interest rate and tenure as provided by the user.
One can access the EMI calculator to calculate business loan EMI by filling in basic details such as loan amount, interest rate and repayment tenure.
The tool uses a mathematical formula to calculate EMIs’, and EMI payments are directly proportional to the principal and interest and inversely proportional to the tenure of the loan.
The formula used is:
E = P*r*(1+r)^n/((1+r)^n-1)
Where E = EMI
P = principal loan amount
R = rate of interest
N = tenure/duration of months
Below is an example of a business loan EMI table:
Loan Amount – Rs 10,000 /-
Interest Rate – 15%
Tenure – 1 year
| Year | EMI | Interest Paid | Principal Paid | O/S Balance |
| 202 | ||||
| July | 902.58 | 125 | 777.58 | 9928.41 |
| August | 902.58 | 115.28 | 787.30 | 9025.84 |
| September | 902.58 | 105.44 | 797.14 | 8123.26 |
| October | 902.58 | 95.47 | 807.11 | 7220.68 |
| November | 902.58 | 85.39 | 817.20 | 6318.10 |
| December | 902.58 | 75.17 | 827.41 | 5415.52 |
| 2024 | ||||
| January | 902.58 | 64.83 | 837.75 | 4512.94 |
| February | 902.58 | 54.36 | 848.23 | 3610.36 |
| March | 902.58 | 43.75 | 858.83 | 2707.78 |
| April | 902.58 | 33.02 | 869.57 | 1805.20 |
| May | 902.58 | 22.15 | 880.43 | 902.62 |
| June | 902.58 | 11.14 | 891.45 | 0.04 |
| 10831 | 831 | 10000 |
EMI – Rs 902/-
Interest Payable – Rs 831/-
Total Amount Payable – Rs 10,831 /-
Who can use Business Loan EMI Calculator?
Anyone can access the Business Loan EMI Calculator tool and check the EMI to be paid for the required loan amount. This helps them to borrow an ideal amount based on their repayment capacity.
Factors that affect Business Loan EMI Calculator:
Loan Amount – The amount of loan that is required to be taken decides the EMI amount. The higher the amount, the higher the EMI and the lower the amount, the lower the EMI. also mainly depends on the repayment tenure of the loan.
Rate of Interest – ROI (Rate of Interest) plays an important role in deciding the EMI.
Repayment Tenure – Loan tenor or repayment tenure is also equally important in deciding the EMI. A longer tenure provides lesser EMI, and shorter tenure provides higher EMI.
Benefits of using a Business Loan EMI Calculator:
Efficient Planning –Business Loan EMI Calculator helps in efficient loan planning.
Financial Planning for the future – Business Loan EMI Calculator helps plan finances for the future in a better way.
Option to Choose – Business Loan EMI Calculator provides an option to choose multiple schedules and EMI instalments’ tenure as per one’s need.
Approximate EMI Calculation – Business Loan EMI Calculator displays the approximate EMI amount to be paid over the availed business loan.
Detailed Overview – Business Loan EMI Calculator depicts a detailed overview of the availed loan through an amortization schedule.
Effective Comparision – Business Loan EMI Calculator lets one compare the EMI amounts by different lenders, making it easy to choose the right lender.
In developing countries like India, NBFCs play a significant role where more than half of the population belongs to the rural section. Also, commercial banks are not available remotely in these areas, so NBFCs lend a helping hand to the people by providing financial services.
Some of the advantages of NBFC are
- NBFCs are quicker than banks
- Providing credit facilities and loans
- Puts resources into currency market instruments
- Manage assets by participating in activities such as portfolio and equity portfolio management
- Funds private education
- Supports investment in properties
- Helps in retirement planning
- Guides companies in acquisition and merging
- It serves as an option for borrowing money where banks are not available
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Faq's
EMI stands for Equated Monthly Instalment. It is the amount paid regularly to pay an outstanding loan within a certain time frame. The factors considered while calculating EMI are the loan amount, interest rate and tenure in months.
All existing customers qualify for pre-approved offers that come with several benefits. Existing customers can avail faster processing and quick disbursement of the loan amount.
Amortization is when the debt is reduced or paid off by regular payments.
The loan amortization schedule is a complete list of periodic loan payments, displaying the principal amount and the interest amount that comprise each payment until the loan is paid off at the end of its term.
Firstly it is important to have a clear idea of the amount that is to be repaid. It is also important to know the interest rates, tenure and how much loan amount can be secured based on their capability.
The EMI amount remains the same unless the Government decides to increase the interest rate; only then EMI will increase.
EMI amount can be brought down by increasing the tenure of the loan. Another way to reduce EMI is by paying a part of the loan amount in one go and paying reduced EMI for the remaining loan amount.
A missed EMI can have two implications, one late payment charge depending on the terms and conditions mentioned by the lender and secondly double payment following the missed EMI month, which means the missed EMI amount will have to be paid in the consecutive month.
Usually, the interest rate remains the same throughout the loan repayment tenure unless the government decides to increase or decrease the interest rate.
To avail of a business loan, a business should have made a profit in the previous 2 years. The business should also have a minimum annual income of Rupees 1.5 lakhs per annum. The applicant must be minimum 21 years of age at the time of applying for the loan and should not be old than 65 years.
A business loan EMI calculator provides with most accurate results on the go, provided the data keyed in is accurate. The EMI calculator requires three components for computing EMI, loan amount required, interest rate and loan repayment tenure.