Know About the Benefits of Business Loan EMI Calculator

Any business irrespective of its size and nature, requires funds constantly. Getting a loan, such as a working capital loan, is one of the many ways of financing your business. However, before you apply for a business loan, it is important to know about your loan eligibility, and find out details such as loan amount, interest rate, and monthly EMIs. A business loan EMI calculator can help you calculate the monthly instalments you need to pay on your business loan. Read on below to know more about them.

What Does A Business Finance or Loan EMI Calculator Means?

A business loan EMI calculator helps you calculate the monthly instalments on your small business loan. Since you can find out the EMI you need to pay every month in advance, you can choose a loan amount that meets your requirements and matches the financial plans of your business. 

How do Business Loan EMI Calculators Work?

You can find out the EMI payable by using the following terms and formula:

  • Loan Amount (principal) = P = 20,00,000
  • Tenor = n = 4 years
  • Interest Rate = r = 12% (calculated monthly) 
  • E = EMI

Formula: E = P * r * ( 1+r ) ^ n/ [ (91+r ) ^ n-1 ]

So for a business loan of Rs.20 lakh @12% interest for 4 years. The EMI based on the above formula would be:

E = 20,00,000 * 12%/12 * (1 +12%/12) ^ 4/[(1 + 12%/12)] ^ 4 – 1] 

EMI = 52,668

So, all you need to do is use this calculator to find out your monthly EMIs on unsecured business loans.

Benefits of Business Loan EMI Calculator

  • Saves Time  & Effort: Using an EMI calculator allows you to calculate your  monthly EMIs by just entering the variables and using a calculator to calculate them. You can even use online calculators that are available for the same, thus saving you a lot of time and effort.
  • Compare & Find Out the Best Lender: One of the biggest advantages of using this calculator is that you can find out the EMI you need to pay in advance. This way you can compare different lenders, and choose the one that offers you the best terms as per the financial needs of your business
  • Get Accurate Numbers: Using an EMI calculator available online, you can easily find out the exact amount of monthly instalment you need to pay on your business loan on the go. 
  • Know Your Affordability: Using an EMI calculator, you can know the exact amount of business loan you can take with your financial capacity. This allows you to choose the right amount of business loan and repayment tenor that suits the cash flow of your business. 
  • Allows Better Financial Planning: Since you would know the exact monthly instalment you will need to pay on your business loan in advance, you will have  a clear idea of your monthly expenses and therefore you can plan your finances better. 

In conclusion, using the calculator provided above, you can easily choose the right duration and amount of business loan you need. Since you will have a clear idea about the monthly instalments, you can allocate funds the right way in your business without having to worry about cash flow or the shortage of funds. 

Leading financial institutions like Bajaj Finserv offers collateral-free business loans with minimal paperwork and quick approval in just 24 hours. This NBFC provides pre-approved deals on its products such as home loans, business loans, personal loans to fasten the loan availing process.

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