Check your Monthly EMI for Business Loan & Repayment Schedule
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EMI Amount = *
As a business owner, it is crucial that you borrow funds at cost-effective interest rate. To plan repayment efficiently, be sure to use the Business Loan EMI calculator.
An equated monthly instalment (EMI) is a pre-determined monthly payment made by a borrower to a lender on a pre-determined date each month. EMIs comprise interest and principal, and the loan is paid off in full over a period of years, called tenure.
Borrowers benefit from a fixed EMI amount since they know exactly how much money they'll have to pay each month toward their loan, making financial planning easier.
A Business EMI calculator helps you in keeping track of monthly instalments in the form of EMIs that you need to pay to your lender.
Poonawalla Fincorp offers a free EMI calculator for Business Loans in India to help you plan your loan without any hassle. You can calculate your Business Loan EMI, know the total interest outgo, and access the amortization schedule.
How to Use 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 the ‘Tenure’ section
Step 5: View results under the ‘EMI Amount’ section’
How to Calculate Business Loan EMI?
There are three ways to calculate Business Loan EMIs.
- Online calculator: The simplest, quickest, and easiest way to compute monthly instalments is by using a Business Loan Interest Rate calculator, also known as a Business Loan EMI calculator. Here, all you need to do is enter the values for three main components namely Loan Amount, Interest Rate and Tenure, and the result is auto-generated within seconds.
- Microsoft Excel:
This method is fairly simple. 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 every month (Rate of interest / 12)
○ ‘NPER’: This stands for loan tenure in months
○ ‘PV’: This denotes the loan amount or principal value
Upon entering the above-mentioned 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)]
where,
‘P’ denotes the principal amount
‘N’ denotes the tenure in months
‘R’ denotes the interest rate applicable every month
How Much Will be the EMI for a ₹10 Lakh Loan?
If you apply for a ₹10 Lakh Loan at a 15% interest rate for a period of 4 years, your loan EMI amount will be approximately ₹27,831*. You can use the Business Loan EMI calculator to determine the interest rate and tenure that best works as per your financial condition.
How to Reduce your Business Loan EMI
There are four 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 repayments for the loan will be reduced. You can also check how much the EMI will reduce with the Business Loan EMI calculator by adjusting the loan amount field.
- 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 longer time, which will help you in paying less EMI every month. But do remember that this option will make you pay more interest on the Business Loan.
- Secure a lower interest rate - If you manage to secure a lower interest rate, you can pay a lower EMI amount as the interest rate is a determining factor in calculating your loan EMI. Having an excellent credit score can help you to achieve the same.
- 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 loan tenure, the remaining loan amount will reduce and lead to lower EMI.
Factors that Affect Business Loan EMIs
Three key factors affect Business Loan EMIs. Here is a breakdown of each for your understanding:
- Loan amount: This is the sanction you receive on your Business Loan, 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 from Poonawalla Fincorp, it starts from a very attractive low interest rate compared to other lenders. For the same loan amount and tenure, loans sanctioned at a higher rate will have higher EMIs as compared to loans with lower rates.
- 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-tenure Business Loan is a better fit.
Frequently Asked Questions
How is Business Loan interest decided?
Business Loan interest decision is based on the market conditions, the lender’s credit policy, 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.
Is there a way to access the Business Loan online repayment schedule offline?
You can simply enter the accurate values into the Business Loan interest rate calculator and click on ‘Download Repayment Schedule’. A PDF file will get automatically downloaded with all the details.
Why should I use the Business Loan EMI calculator?
The Business Loan EMI 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 amortization schedule?
To access the amortization 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 EMI calculator and then click on ‘Check Repayment Schedule’.
What is an MSME Loan calculator?
The MSME Loan calculator is a calculator which is used by Micro, Small and Medium enterprises for calculating the EMI they need to pay after borrowing a loan from a creditor. The Business Loan EMI calculator and MSME EMI calculator are one and the same in terms of usage.
