Find your EMI amount & repayment schedule
As a business owner, it is crucial that you borrow funds at cost-effective terms. Deciding loan terms ensure that cash flow management and profit generation continue unabated. To plan repayment efficiently, be sure to use the business EMI calculator.
An equated monthly instalment (EMI) is a pre-determined monthly payment made by a borrower to a creditor on a pre-determined date each month. Each month, EMIs are applied to both interest and principal, and the loan is paid off in full over a period of years. EMI borrowers are typically only authorised to make one fixed payment per month. Borrowers benefit from an EMI since they know exactly how much money they'll have to pay each month toward their loan, making personal financial planning easier. Lenders gain from loan interest because it provides a steady and predictable income source. Business EMI calculator helps you in keeping a track of monthly instalments in the form of EMIs that you need to pay to the creditor.
Poonawalla Fincorp offers a free EMI calculator for Business Loans in India to help you plan the loan without any hassles. With it, you can calculate Business Loan EMI, know the total interest outgo, and access the amortisation schedule for deeper insight into repayment.
How To Use The Business Loan EMI Calculator?
Step 1: Visit the calculator webpage - https://poonawallafincorp.com/business-loan-emi-calculator.php
Step 2: Input the loan amount you require
Step 3: Fill in the interest rate offered to you by Poonawalla Fincorp
Step 4: Enter the loan duration under section ‘Tenure’
Step 5: View the results under the section ‘EMI Amount’
How To Calculate Business Loan EMI
There are 3 ways to calculate Business Loan EMIs, each with varying complexity and effort required.
- Online calculator: The simplest, quickest, and easiest way to compute monthly instalments to use a Business Loan interest rate calculator also known as Business Loan EMI calculator. Here, all you need to do is enter the values for the 3 main components, and the result is auto-generated within seconds.
- Microsoft Excel:
This method is fairly simple but has room for errors. Here, using the Excel program, input the ‘PMT’ formula. Once selected, enter loan data into the following variables accurately.
○ ‘Rate’: This is the rate of interest on a monthly basis (Rate of interest / 12)
○ ‘NPER’: This stands for loan tenure in months
○ ‘PV’: This denotes the loan amount or principal value
Upon entering these details, be sure to leave the values for ‘FV’ and ‘Type’ as 0 and 1, respectively. - Manual calculation: This is the most difficult way to calculate Business Loan EMI values as it requires manual calculation using the following formula.
EMI = [P x R x (1+R) ^ N] / [(1+R) ^ (N-1)]
Here,
‘P’ denotes the principal amount
‘N’ denotes the tenure in months
‘R’ denotes the interest rate applicable on a monthly basis
How To Reduce Your Business Loan EMI
There are 4 ways to reduce the EMI amount.
- Reduce the loan amount you wish to borrow - By reducing the loan amount that you wish to borrow, you can lower the EMI as the monthly payments will be reduced. You can also check how much the EMI will go down by checking the Business LoanEMI calculator.
- Opt for a longer tenure on the Business Loan - By opting for a longer tenure on a Business Loan, your EMI will be divided over a long time and this will in turn help you in paying less EMI every month. You can also check how much the EMI will go down by checking the Business LoanEMI calculator.
- Secure a lower interest rate - If you manage to secure a lower interest rate, then in turn you will have to pay a lower EMI as the interest rate is the determining factor in calculating the EMI. You can also check how much the EMI will go down by checking the Business Loan calculator EMI.
- Prepay the Business Loan at least once during the tenure - If you manage to prepay some of the Business Loan at least once during the tenure then your leftover loan amount will be reduced and since EMI is calculated based on the loan amount left to be prepaid, EMI will go down. You can also check how much the EMI will go down by checking the Business Loan calculator EMI.
Factors That Affect Business Loan EMIs
There are 3 key factors that affect Business Loan EMIs, and here is a breakdown of each for your understanding.
- Loan amount: This is the sanction you receive, and it directly affects the EMI amount. The EMIs on a small-ticket loan will be lower than the EMIs on a big-ticket loan with identical tenure and interest rates.
- Interest rate: This is the rate at which interest is calculated on the principal amount. For a Business Loan, it ranges between 15% and 28%. Loans sanctioned at a higher rate will have higher EMIs as compared to loans with lower rates with equal quantum and tenure.
- Tenure: This is the repayment window and is another critical factor that affects your Business Loan EMI value. In this case, opting for a lower tenure increases the EMI amount as you have a smaller window to repay debt. Alternatively, if you’re looking for affordable EMIs, a long tenureBusiness Loan is a better fit.
Frequently Asked Questions
How is Business Loan interest calculated?
Business Loan interest is calculated based on market conditions, the lender’s benchmarking system, and the applicant’s financial profile.
Can I use the Business Loan interest calculator for free?
Yes. You can use the Poonawalla Fincorp Business Loan EMI Calculator also known as a Business Loan interest rate calculator for free online, as many times as you need.
Is there a way to access the business Loan online repayment schedule offline?
Simply enter the accurate values into the Business Loan interest rate calculator also known as the Business LoanEMI calculator and click on ‘Download Repayment Schedule’. A PDF file will get automatically downloaded with all the information accessible offline.
Why should I use the Business Loan EMI calculator?
The Business Loan interest calculator is a tool that can come in handy when planning a loan. As a business owner, you can use it to identify suitable repayment plans based on your business goals.
How do I access the amortisation schedule?
To access the amortisation schedule, all you need to do is calculate your EMI amount based on the loan terms offered to you with the help of a Business Loan interest calculator and then click on ‘Check Repayment Schedule’.
What is an MSME Loan calculator?
MSME Loan calculator is another type of EMI calculator which is used by micro, small and medium enterprises for calculating the EMI that they need to pay when they borrow a loan from a creditor. There is no difference between a Business Loan EMI calculator and an MSME EMI calculator.
How does a Business Loan calculator India work?
A Business Loan calculator India is one of the useful tools that helps you know the EMIs you have to pay against your loan. Hence, it helps you to plan your loan repayment with ease.
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