IIFL Finance Business Loan EMI Calculator

Here’s how to go about the process of finding out what your monthly loan instalment comes to:

Suppose you secure a business loan of ₹30 Lakhs at an interest rate of 16.50% p.a. for a 48-month tenure, you can use the following formula to calculate the IIFL Finance business loan EMI.

EMI = P × R × (1 + R)^N / [(1 + R)^N - 1]

Here:

• P = Loan amount borrowed

• R = Monthly rate of interest (annual rate divided by 12)

• N = Loan tenure in months

Thus,

• Loan Amount (P): ₹30,00,000

• Monthly Interest Rate (R): 16.50% / 12 

• Loan Tenure (N): 48

By entering these values into the calculator, the EMI comes to approximately ₹85,791 per month.

Manual calculation can be time-consuming and error-prone, so using the business loan EMI calculator ensures accurate and instant results. This tool simplifies complex calculations while giving you precise information.

The EMI calculator is simple and user-friendly. Follow the steps below to calculate your monthly instalments and gain clear insights into the EMI payable:

1. Head to the calculator on this page

2. Enter the principal amount of your IIFL Finance Business Loan

3. Input the interest rate applicable to the loan

4. Enter your chosen repayment tenure

Once you submit these details, the calculator instantly displays your estimated EMI, total interest payable, and overall repayment amount.

Understanding the factors that influence your EMIs is essential for effective repayment planning and for selecting a loan suited to your business requirements.

• Credit Score and Financial History

A strong credit profile and a record of timely repayments often result in lower interest rates, which leads to reduced EMIs. Conversely, a poor credit history may lead to higher borrowing costs.

• Loan Principal

The principal amount significantly impacts EMIs. Higher loan amounts provide greater capital for business expansion, but increase monthly instalments. Smaller loan amounts keep EMIs affordable but may limit funding. Find the ideal balance between the two based on repayment capacity. 

• Annual Interest Rate

Interest rates directly determine the cost of borrowing. Higher rates increase EMI amounts and overall interest outgo, whereas competitive rates help reduce monthly repayment obligations.

• Repayment Tenure

The loan tenure influences both EMIs and total interest. Longer tenures lower monthly instalments but increase the overall costs of borrowing. Shorter tenures, on the other hand, reduce the total interest but increase EMIs. 

• Part-Prepayments

Prepaying an amount over and above your EMIs helps reduce your outstanding principal, which either decreases your future EMIs or loan tenure. This also helps reduce the overall interest dues. However, make sure you review any applicable prepayment charges before proceeding. 

• Processing Fees and Additional Costs

Charges such as processing fees, late payment penalties, or administrative costs can add to the overall borrowing cost and must be factored into total loan expenses. All of these can add to the overall borrowing cost.

• Business Revenue and Cash Flow

Consistent revenue and stable cash flow demonstrate better repayment capacity and may help you secure favourable interest rates. This results in lower EMIs. Businesses with irregular income streams may face stricter terms and end up with higher instalments.