Business Loan EMI Calculator

Whether a business is large or small, a business loan EMI calculator takes away the pain of manual calculations and provides all the necessary information related to EMIs instantly. Knowing the EMI amount helps borrowers in several ways, including:

• Planning their funds’ outgo,
• Comparing different loans and choosing the one that is best for their needs, and
• Deciding on the tenor by trying multiple combinations and choosing a tenor that suits your budget for monthly EMIs.

The interest rate is a key factor in calculating EMI. If you need a business loan, choose a provider that provides the lowest interest rate. The tenure also plays a role in reducing the EMI. If you expect the liquidity crunch to continue for a time, you can opt for a higher term of 60 months to reduce your monthly outgo.

Shriram City levies the following rates and charges upon successfully taking a business loan:

You are required to fulfill the following criteria to avail of a business loan -

• Minimum turnover of ₹20 lakhs
• The applicant must be in the same business for the past 3 years
• The applicant should be living in the same residential address for at least 1 year
• Valid business registration documents
• Declaration of existing credit obligations
• Age of the borrower

You are required to provide the following documents at the time of availing of a business loan -

• Identity proof
• Proof of residence
• Recent passport size color photographs
• Proof of income
• Declaration of existing credit obligations
• Original documents - Collateral Security pledge / hypothecation / Mortgage - Original documents required
• Post-dated cheques and Electronic clearing mandates (ECS)
• Any other documents depending on the borrower’s unique situation

In case of a missed EMI payment or an ECS bounce, the borrower has to pay bounce charges of up to ₹500.

The monthly EMI is fixed throughout the loan of the tenure. However, the tenure of the loan is subject to fluctuations in market interest rates.

Knowing the EMI amount before taking a business loan helps business owners plan their finances. Whether it is meeting their short-term liquidity needs or planning big-budget capital expenditures such as purchasing plants and machinery, calculating the EMI amount prepares business owners. Knowing the EMI eliminates surprises as business owners know the amount payable in advance.

We hope this helps you understand how to calculate business loan EMI; it has been made very easy with Shriram City. If you seem to face any difficulty, do reach out to us.