Business Loan EMI Calculator

What is Business Loan EMI calculator?

Businesspersons require loan, sometimes it is to get raw materials for their production unit or to fulfil the demand of certain goods in the market, and also sometimes to makeup further losses suffered by the business house. That is the time; they apply for loan from financial institutions at negotiable rate of interest. The total amount of money borrowed and invested in business is the business loan. However, when looking for the loan, the person has to understand how much monthly instalment will he/she has to pay.

Business Loan EMI

The full form of EMI is 'Equated Monthly Instalment'. This simply means the money you will pay to the lender every month for clearing the loan. You can choose to pay either variable or fixed instalments for this loan. Also, you have the choice to pay the instalments via post-dated cheques or Standing Instructions that will allow debiting the amount from your account.

EMI is Equated Monthly Instalments. It is a specific repayment amount that is to be paid every month by the borrower to the lender, till the loan amount if fully recovered. An EMI calculator for Business loan is used for calculating business, which calculates the amount with three main variables, interest rate, tenure, and amount borrowed. At loanbaba.com, you get free-to-use loan calculator, which calculates the EMI in real-time.

Why the Loan EMI should be calculated before applying for the business loan?

It is necessary to calculate the EMI before applying for the loan. If you won't be able to pay the EMIs, then not only the debt will keep on mounting, but it will negatively affect your credit score. It is recommended to use business loan EMI calculator to get the idea of the amount of the EMI.

How Business Loan EMI Calculator Works?

This calculator is specifically designed to calculate how much money has to be paid back to the bank or NBFC (non-banking financial company) against the loan amount. The online business loan EMI calculator is very helpful for the borrower. Let us assume that a loan of Rs2,00,000/- has been sanctioned for a period of 2 years at the rate of 14%.So total pay back amount is Rs2,30,460 including 2% processing fee.

The EMI calculation would be:

EMI=Li (1+i) n/ {(1+i) n-1}

  • P =Total Loan Amount
  • I = Rate of interest
  • N = Tenure of the loan.

The online EMI calculator Business loan, works as per the above formula. As the principal loan amount decreases, so does the interest amount, therefore the interest payable is calculated afresh every month on the basis of reduced loan amount. You can also calculate your business loan eligibility with our online business loan eligibility calculator, which is also available without any charges.

How to use Business Loan EMI Calculator by Loanbaba?

The EMI calculator on our website is very easy to use. You just have to enter few details and you will know the equated monthly instalment in a second. The calculator is dynamic, accurate, and time saving. It makes no mistake in calculation and gives the right instalment amount every time. However, while entering details in the calculator, be sure to make no mistake, as the result of the calculation depends on the value you put in the calculator.

Below mentioned are steps on how to operate the loanbaba loan EMI calculator:

  • Enter loan amount in the calculator.
  • Adjust the slider on interest rate bar at desired rate of interest.
  • Adjust the slider on loan tenure bar at desired period of loan (in years or months).
  • Now at the left-hand side of the calculator, you will see immediate result of total interest payable, principal loan amount, and the EMI to be paid.
  • Below the calculator you will find the complete payment schedule and amortization table through the loan tenure.

What are Features and Benefits of a Business Loan EMI Calculator?

Loan is required for different purposes. It is a part of running a business. It is required for the growth of the company and also to set up a new business. As loans can be availed for long term they are used for service promotion, investment in land, for research work, importing raw materials and machineries, storage, marketing etc. In short it is for the growth of the company. To understand how EMI on loan is calculated, you can refer the calculator available on our website.

Here are some of the features of business loan EMI calculator on loanbaba:

  • It is time saving and accurate. There are no inaccuracies in the result.
  • The calculator can be used endless number of times and does not get stuck anytime while calculating the output.
  • It calculates within a second, and is fastest when it comes to EMI calculation online for business loan.
  • You can calculate for any loan amount and tenure, which is within the limits stated by the calculator.
  • You do not have to create an account with loanbaba.com to use this tool. The tool is free-to-use for visitors and members alike.

Business Loan EMI Calculator FAQs

Below mentioned are some of the important queries about EMI calculator business loan India.

  • Why do you need a business loan and what is the importance of EMI?

As business is very unpredictable sometimes a businessperson incurs huge financial loss due to various reasons like defect or fault in the goods produced, labour problems in the productions houses, imported raw materials not reaching in time, rejection of exported products, defective packaging and improper storages of perishable goods etc. At this moment of crisis, the businessperson has no alternative but to resort to business loans from banks and other financial investors, in order to recover their loss and same themselves from being in debt.

Repayment of loan is to be done in a time period set by the public and private sector banks and other financial creditors. Three facts that affect a business loan are the amount borrowed, time period for loan repayment and rate of interest levied by the lenders both public and private. To know how much one has to repay, understanding EMI is important. EMI calculation will tell exact monthly instalment to be paid.

  • Why is calculation of EMI against business loan mandatory?

As there is a lot of risk involved in business, and your profit margin and net income also varies every month, it is always good to have knowledge of the future monthly expenses; you’ll have to bear and the amount of EMI, payable against a given sum of loan.  So it is important for all self employed people and businessperson to calculate their EMI beforehand to avoid any sort of financial crisis in future or becoming a loan defaulter.

As they do not get a fixed pay check every month it is important for them to know their fixed expenses every month. It also makes their financial position secure. However every business man should keep in mind that they will not be granted a loan if they have poor CIBIL score, if they have been loan defaulters and if have had any fraud records.  To calculate the EMI you can refer SBI business loan EMI calculator and HDFC business loan EMI calculator.

  • What is the system of part repayment in business loans?

As discussed earlier, that business loans are taken for the growth of the establishment or firm or to recover losses and deficit. In the process a situation might arise where an inflow of cash is required, in order to implement some new business strategy for future profit. This is the time when business loan act as a support system to carry out your new business strategies. After the borrower’s loan gets sanctioned, he/she is given a time period to repay the outstanding loan of the lender.

The term business and instability go hand in hand. It involves risk and speculation which might go for or against you. Let us imagine a situation where you have made huge profit. The first step is to repay the loan to your creditor. If you want to repay the loan before completion of the given time period, then the banks and creditors will help to do so.

If the borrower makes a part repayment before time, then the loan amount automatically comes down, consequently the monthly interest rate decreases. Subsequently the time period of your loan repayment will go down.

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