Part-prepayment is a process through which a borrower can make a lump sum payment towards the loan during the tenor of the investment. Prepayment can be done in full or in parts. Assuming you receive a big sum as Diwali bonus, you can use the funds to make a prepayment on your business loan. A prepayment reduces the principal outstanding loan amount to bring down your interest liability. Some lenders typically require you to wait at least one year before making a prepayment.
A prepayment on your business loan will help reduce your business loan EMI for the rest of the tenor. Alternatively, you could also choose to pay the same EMI for a shorter loan tenor.
The part-prepayment calculator enables you to view the positive impact of making early repayments on your business loan before initiating the same.
The business loan lender may or may not levy prepayment charges. You can check the business loan agreement that carries information about the same.
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FAQs
A part prepayment on a business loan is the payment of three or more EMIs in advance, i.e. before the due date. This facility enables borrowers to close their business loans before the completion of the loan tenor and reduce their overall interest obligation.
The business part prepayment calculator helps you understand the revised loan terms after making a part prepayment. All you have to do is enter the loan amount, tenor, and the interest rate. Once you enter these values, the calculator part prepayment calculator will compute the revised EMI obligation.
To use the Business Loan part prepayment calculator, follow the given steps:
Step 1: Visit the Business Loan part prepayment calculator webpage.
Step 2: Enter the loan amount, lump-sum prepayment amount, interest rate, and loan tenure.
Step 3: Submit your request.
Step 4: View the revised loan EMI.
A part prepayment calculator allows you to compute the revised loan conditions after making a part prepayment. For the uninitiated, a moratorium is a period offered to borrowers during which they do not have to pay the EMI. This moratorium is typically one to three months. The EMI is adjusted once the moratorium period is complete. The moratorium calculator helps you understand the added cost on the applicable EMI/loan payment in case you apply for a moratorium.
Leading financial service providers offer the part prepayment calculator. Simply visit the part prepayment calculator webpage and enter the requisite details. The part prepayment calculator will compute your revised EMI obligation and help you plan your budget accordingly.
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