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Total Interest Payable
Total Payment (Principal + Interest)
Like all loans, business loans involve interest and Equated Monthly Installments (EMIs). A business loan EMI calculator helps instantly calculate the EMI for different combinations of loan amounts, interest rates, and loan terms. Moreover, every EMI has an interest and a principal component. With a business loan calculator, EMI information is supplemented by other information such as total interest and principal payable and total payment to be made. A business EMI calculator has a user-friendly interface that makes sure anyone can understand the result.
The EMI calculator for a business loan in Excel uses the following formula - PMT (Rate, NPER, PV, FV, TYPE)
However, using a business loan EMI calculator in Excel requires some knowledge of the software. For those looking at a business loan calculator in India, the small business loan calculator EMI Calculator is the best choice.
Suppose someone is taking a loan of ₹10 lacs at an interest rate of 15% for 36 months. You can calculate the business loan EMI in 3 simple steps -
|Loan EMI |
|Total Interest Payable |
|Total Payment (Principal + Interest)|
The EMI of a business loan depends on three factors -
The loan amount and interest rate are directly related to the business loan EMI payable. The higher the loan amount and the interest rate, the greater the EMI will be. The loan tenure has an inverse relationship with EMI. The higher the loan tenure, the lower the monthly EMI is.
A business loan EMI calculator is programmed to calculate the EMI amount based on the user's variables. It is a business loan interest rate calculator feature that calculates the interest payable based on the principal amount, rate, and tenure. The business loan interest calculator’s results distribute the principal payment over the loan tenure. It comes up with a monthly amount payable that includes both the principal and the interest.
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:
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:
|Interest rates||Starting from 15%|
|Processing fees||Less than 2%|
|Loan tenure||Up to 60 months|
|Disbursement||Up to 1 Crore|
You are required to fulfill the following criteria to avail of a business loan -
|At the time of availing of the loan||Not less than 23 years|
|At the time of maturity||Not more than 65 years|
You are required to provide the following documents at the time of availing of a business loan -
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.