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A business loan repayment plan demands careful planning, and paying your business loan EMIs on time requires efficient financial management so that your monthly budget does not dwindle. By using the Business Loan EMI Calculator available on Bajaj Markets, you can determine your monthly EMI obligations so that your finances are in place.

Calculate Your Business Loan EMI

** The above charges are excluding taxes
* Placeholder for disclaimers on Interest and Charges page
 **These are indicative and subject to change at the discretion of lender/ without prior notice.

** The above charges are excluding taxes
* Placeholder for disclaimers on Interest and Charges page
 **These are indicative and subject to change at the discretion of lender/ without prior notice.

How is Business Loan EMI Calculated?

The Business Loan calculator on Bajaj Markets is a simple online tool to estimate the EMI you would need to pay each month. There are three inputs that you need to enter to find out the EMI. They are:

  • Loan Amount:  It is the loan amount that you want to apply for.

  • Rate of Interest:  This is the amount that a lender charges on the principal loan amount. It is expressed in percentage terms.

  • Loan Tenure:  This is the period over which you need to repay the loan.

How Does a Business Loan EMI Calculator Work?

The formula used to calculate Business Loan EMI is:

E = P * r * (1+r)^n / ((1+r)^n-1)

 

where 'E' is EMI,

'P' is the principal loan amount

'r' is the rate of interest calculated every month

'n' is the tenure or duration of the loan 

How is Interest Calculated on a Business Loan? 

The interest rate is the amount levied by the lender on the offered loan amount. It is expressed in the form of a percentage of the principal amount. There are two kinds of interest rates that are typically quoted to borrowers. One is the nominal interest rate, and the other is the Annual Percentage Rate (APR). 

The nominal interest rate is the total annual interest rate levied by the lender. On the other hand, APR is the total loan cost that comprises the processing fee, interest fee, administrative fee, and more. The effective interest rate is calculated using the following formula:

(1+r^n)-1, where r is the periodic rate of interest.

Benefits of Using Business Loan EMI Calculator 

There are innumerable benefits of using a business loan calculator. Some of the notable pros include: 

  • Time-Saving: This calculator helps save on time that you would otherwise spend on tedious calculations and provides you with quick results. 

  • Easy to Use: EMI calculators are simple to use. Once you enter all the required details, such as the interest rate, loan tenure, and loan amount, the tool will compute the results for you.

  • Error-Free Results: The use of the calculator eliminates the possibility of human calculation errors. 

  • Aids in Comparison: The calculator helps you conduct a comparison between different offerings as well as different loan parameters.

  • Ensures Smart Budgeting: The use of the calculator ensures that you can do better financial planning as you are well-informed about your repayment obligations. 

Factors That Affect Business Loan EMI

The business loan EMI is impacted by three major factors that include: 

  • Loan Amount: The loan amount that you apply for comprises the base of your EMI. The EMI increases when your loan amount increases and vice versa. 

  • Interest Rate: The interest rate is an essential component of a business loan. A higher interest rate will lead to a higher EMI cost, which is why you must strive to get a good deal on the business loan interest rate

  • Loan Tenure: The loan tenure is the period through which you service the loan. A longer tenure will result in a lower EMI cost, and however, it will also impact the interest component and increase the same.

FAQs on Business Loan Calculator

  • ✔️What happens if I miss one EMI payment?

    Missing an EMI payment can lead to a late payment fee. Moreover, missing a loan or credit card due date also has an adverse impact on your credit score.

  • ✔️Why is it important to calculate EMI before taking out a business loan?

    Calculating the EMI beforehand can help you determine the amount you would need to pay each month so that you can manage your finances accordingly. 

  • ✔️Will my EMI change in the future or remain the same?

    For loans availed on fixed interest, the EMI remains the same.

  • ✔️Can the interest in EMI be reduced?

    No, once the loan is disbursed, the interest component cannot be changed. You would need to undertake a business loan balance transfer to get better interest rates and reduce your interest liability. Another way, which is recommended, is to maintain an excellent credit score and negotiate the interest rates with the lender at the time of loan application.

  • ✔️What is the mode of repayment of the monthly EMI?

    EMIs can be paid online through NACH debit mandate, ECS, or cheque.