Business Loan EMI Calculator

Business loans are vital to running a successful business. It provides the required capital to help businesses achieve profitability. However, it is equally important to know your EMI amount beforehand. A business loan calculator is an ideal tool that assists you in planning your monthly budget by providing the exact EMI amount you will have to pay to repay the stipulated business loan.

A business loan calculator is an online tool which is easy to use. It is the first step to ascertain the loan amount that you should avail of so that the EMI is affordable and does not impact your monthly business needs. You can estimate your EMI by using IIFL’s MSME Loan EMI Calculator.

Business Loan EMI Calculator

Calculate your EMI and choose the most suitable product for you

How to Use a Business Loan Calculator?

A lower EMI, competitive interest rates and convenient repayment tenure of IIFL business loans help you grow your business and repay your loan comfortably. You can avail of a loan for working capital needs or a term loan for a larger business needs or both given your requirements and aspirations. For greater transparency and to help you choose an ideal business loan, IIFL Finance has designed a comprehensive business loan calculator to ensure you have a better understanding of the EMI amount to manage your business expenses:

IIFL Finance’s business loan calculator is simple to use and determines the loan EMI precisely using the EMI calculation formula. The business loan interest rate calculator can also determine your interest obligations for the business loan you have taken for your MSME. Here is how you can use the business loan EMI calculator:

  1. Use the slider under the “Choose the Loan Amount” section and select the total loan amount you have or want to borrow.

  2. Under the “Tenure” option, select the tenure for the loan.

  3. Under the “Interest Rate” option, use the slider to select the desired interest rate.

  4. Once entered, click on the “Submit” button, and we will present your monthly and overall EMI.

Benefits of Business Loan Calculator

Using a business loan EMI calculator offers several benefits for both new and established businesses:

  1. Eliminate manual calculations: Manual calculations can be prone to errors, especially with complex loan terms. The calculator provides accurate and instant results, ensuring you fully understand your monthly repayments.

  2. Compare loan options: Easily compare different loan offers by adjusting loan amount, interest rate, and tenure. This helps you choose the option with the most affordable EMI that fits your budget.

  3. Plan and budget effectively: Accurate EMI calculations allow you to plan your finances effectively, ensuring you can comfortably afford the loan payments without straining your cash flow.

  4. Understand true cost of loan: The business loan calculator factors in interest and other charges, giving you a clear picture of the total cost of the loan beyond the principal amount. You can even determine the interest rates using business loan interest rate calculator.

  5. Negotiate with confidence: Armed with accurate EMI figures, you can negotiate better terms with lenders, potentially securing a lower interest rate or longer tenure.

  6. Assess eligibility:Some business loan EMI calculators provide an estimate of your loan eligibility based on your annual income and credit score. This helps you avoid applying for loans you may not qualify for.

  7. Quick and easy to use:No need for complex formulas or spreadsheets. Simply input loan details and get instant results within seconds.

  8. Accessible from anywhere:Online calculators are available 24/7, allowing you to compare options and make informed decisions at your convenience.

  9. Free to use:EMI calculators are free, making them a valuable tool for any business owner without financial burden.

 

To sum it all up, using a business loan calculator empowers you to make informed decisions about financing your business, saving you time, money, and potential financial stress.

Amortization Schedule

Month Opening Principal EMI Amount Interest Amount Principal Amount Closing Principal Amount
1 ₹ 2,00,000.00 ₹ 19,106.00 ₹ 4,333.33 ₹ 14,772.67 ₹ 1,85,227.33
2 ₹ 1,85,227.33 ₹ 19,106.00 ₹ 4,013.26 ₹ 15,092.74 ₹ 1,70,134.59
3 ₹ 1,70,134.59 ₹ 19,106.00 ₹ 3,686.25 ₹ 15,419.75 ₹ 1,54,714.84
4 ₹ 1,54,714.84 ₹ 19,106.00 ₹ 3,352.15 ₹ 15,753.85 ₹ 1,38,961.00
5 ₹ 1,38,961.00 ₹ 19,106.00 ₹ 3,010.82 ₹ 16,095.18 ₹ 1,22,865.82
6 ₹ 1,22,865.82 ₹ 19,106.00 ₹ 2,662.09 ₹ 16,443.91 ₹ 1,06,421.91
7 ₹ 1,06,421.91 ₹ 19,106.00 ₹ 2,305.81 ₹ 16,800.19 ₹ 89,621.72
8 ₹ 89,621.72 ₹ 19,106.00 ₹ 1,941.80 ₹ 17,164.20 ₹ 72,457.52
9 ₹ 72,457.52 ₹ 19,106.00 ₹ 1,569.91 ₹ 17,536.09 ₹ 54,921.44
10 ₹ 54,921.44 ₹ 19,106.00 ₹ 1,189.96 ₹ 17,916.04 ₹ 37,005.40
11 ₹ 37,005.40 ₹ 19,106.00 ₹ 801.78 ₹ 18,304.22 ₹ 18,701.18
12 ₹ 18,701.18 ₹ 19,107.00 ₹ 405.19 ₹ 18,701.18 ₹ 0.00

How is Business Loan EMI Calculated?

The business loan EMI is calculated based on the loan amount, along with the desired interest rate and tenure. You can calculate the business loan EMI either physically through the EMI calculation formula or online by using an EMI calculator for a business loan. In both the modes, the EMI calculation formula remains the same, which is:

Business Loan EMI : [P x R x (1+R) ^N]/[(1+R) ^(N-1)]

  • P = Loan Amount
  • R = Rate of Interest
  • N = Loan Tenure

This is the basic EMI calculation formula which every lender uses to calculate the loan EMI. It is better to use an online EMI calculator for a business loan to determine your business loan EMI without any possibility of human error. With a business loan calculator, you don’t have to execute complicated calculations but can determine the EMI simply by putting in loan data such as loan amount, rate of interest and loan tenure.

What are the Factors that Affect Business Loan EMI?

Loan Amount:

The amount you want to borrow is the primary factor in calculating the business loan EMI. The higher the loan amount, the higher the EMI you will have to pay at regular intervals. Hence, it is advised that you only opt for a loan amount that you specifically need so that the EMI repayment does not create a financial burden.

Loan Tenure:

This is the most important factor in determining the EMI of your business loan. The loan tenure is the actual time you will get to repay the business loan you have taken and ascertain the EMI amount. The longer the tenure of your business loan, the lower the EMI amount will be, as it will be stretched over a longer repayment period.

Rate of Interest:

Once you have chosen the loan amount and the loan tenure, the next factor that affects the EMI calculation is the rate of interest. The rate of interest is based on your credit score, income, turnover of the business and repayment capability.

Business Loan Calculator FAQs

The ideal business loan interest rate ranges anywhere between 12.75%-44%.

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You have to choose the loan amount you want to borrow while the EMI is calculated using the formula: [P x R x (1+R) ^N]/[(1+R) ^(N-1)].

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MSME loan interest rate is a fee from the lender for a business loan given to any Micro, Small and Medium Enterprise.

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An Indian national between the age of 24-70 who is either a self-employed professional or a self-employed non-professional. Entities such as limited liability partnerships, partnerships, private limited companies and closely held limited companies with a business vintage of a minimum of 3 years are eligible.

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A business loan calculator is an online tool that helps you ascertain how much EMI you will have to pay based on the loan amount, interest rate and loan tenure.

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Through IIFL Finance, you can get a loan approved in a matter of minutes.

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The optimum business loan EMI differs from business to business. The loan EMI will be based on your chosen loan amount and loan tenure and should be affordable for your business to repay.

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You can get a business loan up to Rs 5,40,000 on a Rs 20,000 salary. However, use the business loan calculator to get better calculation results.

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Your EMI can differ significantly depending on the lender that you approach and the interest rates they offer on the loan. Another important factor is the tenure for which you apply. A higher interest rate leads to a higher EMI. A shorter tenure means higher monthly payments, while a longer tenure leads to lower EMIs. Some lenders charge processing fees and other charges that increase the total loan amount and indirectly impact your EMI. For a more accurate estimate, use a business loan EMI calculator, readily available online. You'll need to input specific details like interest rate, tenure, and potential fees for a personalized EMI calculation.

For eg,
Let’s consider a business loan of Rs. 10 lakhs, If the Rate of interest is 13% for a time period of 5 years, then as per the formula of [P x R x (1+R) ^N]/[(1+R) ^(N-1)] The business loan EMI would be ₹ 22,753

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Applicants seeking a business loan require a minimum CIBIL score of 700, demonstrating strong creditworthiness. Additionally, their business must maintain a healthy Credit Monitoring Report (CMR) score, ideally below 7, indicating positive financial performance.

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