The Advantages Of Using A Business Loan EMI Calculator
Every business, howsoever big or small, requires money to run its operations, compete with rivals and succeed in the marketplace. While business owners can put up their own money for these purposes, it is often not enough and they need external capital in the form of a loan from a bank or a non-banking finance company.
Indeed, every micro, small, medium or large business operating in any sector can utilize business loans to meet a variety of short-term and long-term objectives.
Banks and NBFCs offer various types of business loans, so it is important for the business owners or managers to select the one that best suits their requirements. Moreover, the people in charge of the business should thoroughly understand and evaluate the terms and conditions of loan before making a decision.
Like other loans, business loans are also paid in EMIs. The EMI includes a portion of the principal amount and the interest. One of the most critical terms in a loan is the interest rate, which is a key factor in deciding the amount of equated monthly installment, or EMI, one needs to pay. This is when a business loan EMI calculator can come handy.
EMI Calculator
Most lenders provide online EMI calculators for free to help borrowers. A business loan EMI calculator is a tool that can help business owners and managers gain a clearer idea of the loan repayment.
A business loan EMI calculator typically displays three key numbers:
• Loan amount
• Interest rate
• Tenure
• Know Actual Payout:
A business loan EMI calculator helps to calculate the total monthly amount to be paid accurately. This allows borrowers to compare loan offers from different lenders and make the best decision.• Managing Money:
A business loan EMI calculator also shows the amortisation schedule. This is a table containing the monthly breakup of the loan till the end of its tenure. Businesses can use the calculator to customize their installments and find a tenure that can reduce the total repayment amount.• Availability and Usability:
Most lenders provide a business loan EMI calculator that borrowers can use online any time and from anywhere as per their convenience. Moreover, using a calculator is easy and does not require any special skill sets.• Speed:
EMI calculations can be complex if one wants to change the loan amount, tenure or interest rate. Borrowers can use an EMI calculator to change any of the variables and find the results in a few seconds.Conclusion
All businesses need financing options to operate and grow. A business loan is one such option. The loan can be used to expand into new markets, buy new equipment, pay salaries or clear any outstanding utility bills.
Like other loans, the borrower must repay the principal amount of the business loan with interest over the agreed duration of the debt. To know the actual EMI amount to be paid a borrower can use a business loan calculator. Entrepreneurs can use these calculators to select the amount and tenures best suited to their requirements.
Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.
