Business Loan EMI Calculator
Are you planning to take a business loan but are not sure how much EMI you will have to pay? Are you searching for a ‘commercial loan EMI calculator’ but haven’t been successful yet?
Your search ends here! We, from moneyview, bring to you a Business Loan EMI calculator. Our calculator is extremely simple and hassle-free to use. All you have to do is input the principal amount, interest rate, and the repayment term and leave the rest to us!
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Loan Amount
|
20K |
50L |
1Cr |
1.5Cr |
2Cr |
2.5Cr |
3Cr |
3.5Cr |
4Cr |
4.5Cr |
5Cr
20K |
50L |
1Cr |
1.5Cr |
2Cr |
2.5Cr |
3Cr |
3.5Cr |
4Cr |
4.5Cr |
5Cr
Rate of Interest
|
8% |
12% |
16% |
20% |
24% |
28% |
32% |
36%
8% |
12% |
16% |
20% |
24% |
28% |
32% |
36%
Tenure
|
1yr |
2yr |
3yr |
4yr |
5yr
1yr |
2yr |
3yr |
4yr |
5yr
EMI Schedule
| Year | Opening Balance | Interest | Principal | Closing Balance |
|---|---|---|---|---|
| Jun '21 | ₹ 1,00,00,000 | ₹ 1,25,000 | ₹ 32,92,012 | ₹ 67,07,988 |
| Jul '21 | ₹ 67,07,988 | ₹ 83,850 | ₹ 33,33,162 | ₹ 33,74,825 |
| Aug '21 | ₹ 33,74,825 | ₹ 42,185 | ₹ 33,74,826 | ₹0.00 |
Why Should You Use moneyview’s Business Loan Interest Rate Calculator?
There are many reasons to calculate your EMIs before taking a loan.
The first and foremost is that having an idea about your EMI amount can help you plan your finances effectively.
Also, trying to do these calculations manually may leave room for some kind of human error which might wreck your financial planning. The reason why you should use moneyview’s business loan calculator is that it is fast, effective, and error-free.
The business loan EMI calculator by moneyview calculates and provides the EMI amount that you will have to pay, along with the amortization schedule (more on this below) in an instant.
Read on to know how to use our commercial loan EMI calculator.
How Does The moneyview Business Loan EMI Calculator Work?
Every loan needs to be repaid through EMIs or Equated Monthly Installments. This amount depends on many factors like the principal amount, the interest rate, the repayment tenure, etc.
In order to use the business loan calculator, follow the steps given below -
-
• Enter the principal amount that you wish to borrow. You can either type it or adjust it using the slider
-
• Provide the interest rate charged.This too can be either entered or adjusted using the slider
-
• Lastly, enter the repayment tenure.
Once you have entered all of the information mentioned, our business loan calculator will display your EMI amount. You will also see your EMI schedule displayed there.
Business Loan EMI Calculation Formula
If you are interested in knowing the formula that is used to calculate EMI, you can check it out here-
P x R x (1+R)N / [(1+R)N-1]
Where,
• P is the Principal Amount.
• R is the Rate of Interest.
• N is the Number or tenure in number of months.
For example, if Rs. 15,00,000 is the amount borrowed (P), 18% is the rate of interest imposed (R), and the 36 months is the tenure (n), the EMI to be paid using the above formula will be:
15,00,000 x 0.015 x (1+0.015)36 / [(1+0.015)36-1] = Rs. 54,229 (per month)
Thus, the EMI for a Rs.15,00,000 loan on 18% interest will be Rs.54,229.
The rate of interest (R) is calculated monthly i.e. it is calculated as (Annual Rate of interest/12/100) in this case (18/12/100 = 0.015)
Business Loan Amortization Schedule
Apart from the EMI amount, it is also important to also know your amortization schedule. This is essentially a table that shows the amount of principal and interest left in each payment until the loan is fully repaid.
For eg. in the case mentioned above, for a principal amount of Rs.15,00,000 with interest rate and repayment tenure being 18% and 36 months respectively, the EMI amount based on the formula is Rs. 54,229 per month. The table below illustrates the amortization schedule of this loan in detail.
| Year | Opening Balance | EMI Paid for Each Year (Principal + Interest) | Closing Balance | |
|---|---|---|---|---|
| Interest Repaid | Principal Repaid | |||
|
1
|
₹15,00,000
|
₹2,36,964
|
₹4,13,779
|
₹10,86,221
|
|
2
|
₹10,86,221
|
₹1,56,021
|
₹4,94,722
|
₹5,91,499
|
|
3
|
₹5,91,499
|
₹59,244
|
₹5,91,499
|
₹0.00
|
Factors Affecting Business Loan Interest Rates
The rate of interest depends on a variety of factors. It is important to have a knowledge of what affects your ROI. Take a look at some of the major factors that impact the ROI for your business loan-
- • Credit Score
Your credit score is a number that portrays your credit behavior. The higher the number, the better are your chances of getting a lower rate of interest. This is because a high credit score indicates good creditworthiness and lower risk of default.
What credit score is considered high might again depend on your loan provider. You can show either your CIBIL or your Experian score as your credit score.
- • Type of Business
When it comes to a business loan, obviously the type of your business will affect your interest rate. The riskier the business, the higher is the rate of interest charged. If the business you wish to undertake guarantees early profits with lesser risks, you might get the loan at a lower rate of interest.
- • Business Experience
If the businessman has prior experience of running a business, they may be able to avail loans at lower interest rates. This is because an experienced entrepreneur will be better equipped to deal with unpredictable challenges that might come up.
Whether the business itself is new or old will also play a significant role in deciding the rate of interest. If it is a new business, there will be significantly higher chances of it not doing so well, as compared to an up and running business.
- • Loan Amount and Repayment Tenure
As is the case with every other loan, the amount availed and repayment tenure chosen will impact the rate of interest. A lower loan amount and a shorter repayment period will attract lower rates of interest as the perceived risk for defaulting is low.
- • Existing Debts
If you already have existing debts, your debt to income ratio will be higher. In that case, you might not be able to get loans at low interest rates. But if your debt to income ratio is below the recommended level, you might easily get loans at competitive interest rates.
Conclusion
As an entrepreneur, taking loans is inevitable. And that is where business loans come in handy. You can easily get business loans from banks or NBFCs to fund your business.
It is always a good idea to be on top of your finances by planning ahead. For proper planning, make sure to check your EMI in advance using moneyview’s commercial loan EMI calculator.
Business Loan EMI Related FAQs
A business loan often referred to as a commercial loan, may be a secured or an unsecured loan. It is taken to help one’s business in some form. It may be used to fund a new business, or as working capital for an already established one.
Most business loans are secure i.e., they are provided against collateral. This can also reduce the interest rate charged on the loan.
However, if you are looking for an unsecured loan for your business wherein you do not have to provide collateral, you can apply for a personal loan from moneyview at competitive rates.
Yes, you can foreclose your business loan; but the terms and conditions depend on your lender. Certain loan providers allow borrowers to foreclose their loans only after a certain number of EMIs have been paid. Additionally, you may have to pay foreclosure charges for the same.
t is very easy to use a business loan EMI calculator. You just have to follow these steps-
- Enter your principal loan amount
- Enter your rate of interest
- Enter your repayment tenure
The moneyview commercial loan calculator will display your monthly EMI amount as well as the total interest amount to be paid.
A commercial loan or a business loan EMI is calculated just like any other loan EMI. The formula is-
E = [P x R x (1+R)^N] /[(1+R)^N-1]
Where P is the principal loan amount, R is the monthly rate of interest, and N is the tenure in number of months.
For example, if you have taken a loan of Rs.25 Lakh at 18% rate of interest for 3 years(36 months),
your EMI = [25,00,000 x 0.015 x (1+0.015)^36] /[(1+0.015)^36-1] = Rs.90,381
A business comes with a lot of unavoidable challenges, and you need to be best prepared to handle them. Having an idea of the EMI lets you plan your finances in advance, thus reducing the chances of defaulting.
The amount you can get as a personal loan depends on multiple factors, and not just your income. The main factors are -
Your credit score - Higher the credit score, higher is the loan amount you are eligible for
Age and experience - As an entrepreneur, both your experience and age would play a role in getting a loan. The stage your business is in will also be important
Type of business - If your business is low risk, you might be able to get a bigger loan amount easily
Debt-to-income ratio - If you have multiple loans running at the same time then the loan amount you get will be less
Depending on the above factors, your loan eligibility will be determined.
he EMI for a Rs.50 Lakh business loan will depend on your rate of interest as well as your repayment tenure. Let’s say, you have taken a loan of Rs 50 Lakh at 18% rate of interest for 3 years(36 months), then your EMI according to the formula will be-
EMI = [P x R x (1+R)^N] /[(1+R)^N-1]
Where P is the principal loan amount, R is the monthly rate of interest, and N is the tenure in number of months.
= [50,00,000 x 0.015 x (1+0.015)^36] /[(1+0.015)^36-1]
= Rs.1,80,762
So, your EMI on a Rs.50 Lakh loan at 18% ROI and 36 month tenure will be Rs.1,80,762.
The maximum loan amount that you can get as a business loan will depend on multiple factors. Some of them are-
- Your credit score
- Your experience
- Your age
- Your income-to-debt ratio
Yes, you can pay extra EMI to decrease the burden of your commercial loan, if allowed by the lender. It is often referred to as prepayment and is a great way to bring down the principal amount. This way you will be able to repay your loan much before your tenure ends.