Business Loan EMI Calculator: How to Calculate EMI Online In a Minute
12 Aug 2019
A business loan can prove extremely useful for budding entrepreneurs and small businesses. The loaned amount can be used to improve the business set-up, buy raw materials, and improve the overall business infrastructure. However, most business loans are secured loans and demand a collateral against them. Similarly, the amount availed as a business loan is much higher as compared to other types of loans.
These days, a number of loan providers offer attractive interest rates on their business loans. As a result, a borrower is often spoilt for choice for deciding on a business loan provider. However, an important parameter to consider while making the choice is the business loan interest rate. This is because, this interest rate is going to decide what EMI you pay for your loan repayment. However, a major relief is that most business loan providers offer the facility of online EMI calculator to estimate the repayment amount. These business loan calculators are available for free and provide instant calculations on your loan amount.
More about Business Loan EMI
An Equated Monthly Installment (EMI) is the monthly installment you pay for repaying the borrowed amount. This repayment amount has to be paid with whatever rate of interest is decided on the principle loan amount at the time of availing the loan. Thus, in order to reduce the financial pressure at the time of repayment of the loan, the repayment amount is divided into fixed monthly sums as EMI.
The calculation for your EMI amount depends on the business loan interest rates, total amount availed, loan tenure, etc. Moreover, if a borrower decides to make prepayments on the business loan, the EMI amount fluctuates further.
It is important that one has a clear understanding of the total business loan EMI amount to properly decide on the monthly budget. Moreover, running a business often involves a lot of risks. An entrepreneur cannot guarantee that the same amount of profits could be raked in each month. Hence, it is advised to strategize for the EMI repayment at the time of availing the loan amount itself. The online EMI calculators can help make these financial strategies for businesses.
How Does A Business Loan EMI Calculator Work?
Online business loan EMI calculators require you to provide the following inputs-
Step 1: Enter the total loan amount
Step 2: Enter the rate of interest on your business loan
Step 3: Enter the total loan tenure of your business loan
Once you submit these details, the loan calculator instantly calculates the EMI amount on your business loan. For instance, Mrs. Singh entered the following details about her business loan in the Bajaj Finserv Business Loan EMI Calculator about her business loan-
Total business loan amount
Total loan tenure
Rate of interest
The Bajaj Finserv Business Loan EMI Calculator made the following calculations based on the above inputs:
Total Interest Payable
Total Repayment to be made (principal + interest)
Monthly EMI amount
The key formula used to calculate the EMI is-
E = P x R x (1+R) ^N / ((1+R) ^N-1)
E = monthly EMI
P = Principal Loan Amount
R = Rate of Interest
N = Total loan tenure
Benefits of an EMI Calculator Online
Anyone with a good smartphone or internet connectivity can access these online EMI calculators. This helps make sound financial decisions, anytime, anywhere!
Online calculators eliminate the chances of human errors in making the calculations. This ensures higher accuracy in the numbers.
Unlike manual calculations that might take a while to calculate your EMI amount, online business loan calculator provide instant results, thus saving your time.
Aids In Better Financial Planning
You can calculate your business loan EMI night or day with an online calculator. This allows enough scope for business heads to make better financial decisions, with proper consultation with the board members or financial consultants.
Factors That Can Affect Your EMI Amounts
While the online business loan EMI calculators help determine the EMI amount, there are still certain factors that can influence your EMIs. These include the following-
Change In Interest Rate
In the case of fixed business loan interest rates, the EMI amount calculated through online calculators is the same. However, in case of floating interest rates, there is a good chance that the EMI amount will vary as per any change in the interest rates.
Prepayment On Your Business Loan
Most loan providers offer you a chance to make prepayment on your business loans. Prepayment offers a chance to make EMI payments before their stipulated date. Thus, in case your business makes any unexpected profits or you come across any extra funds by profiting through the stock markets, you can direct those funds into prepaying your business loans. Doing thus can significantly bring down your EMI amount.
Change in Loan Tenure
At times if you face any financial crunch in repaying your EMI, you can always ask your loan providers to extend the tenure of your business loan. Any extension or reduction in your loan tenure can affect your business loan EMI considerably.
A business loan can not only help companies come out of any cash crunch that they are facing but also offer potential expansion opportunities. If you are looking for instant business loans with flexible repayment options, apply for the Bajaj Finserv Business Loan today! Business loans offered at Finserv Markets can be availed at zero collateral and exclusive value-added services. Apart from that, a borrower can also enjoy other exciting features such as unlimited withdrawals, interest-only EMI, and minimal documentation on their Bajaj Finserv Business Loan. For more details about your business loan eligibility as well the loan EMI options, visit us at Finserv Markets today!
Finserv Markets, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!