An MSME loan EMI calculator is a simple tool that effectively helps plan your monthly loan repayment obligations. All you have to do is enter the loan amount, the estimated rate of interest and the repayment tenor arrives at a near-accurate number.
Compare
| Month | Starting Balance | EMI | Interest rate | Principal contribution | Interest contribution | Ending Balance |
|---|
EMI term
-
Total amount payable₹ 5,000 ₹ 5,000
-
Interest rate₹ 8.99% ₹ 8.01%
-
Total interest₹ 8.99% ₹ 8.01%
-
Total interest₹ 5,000
EMI term
-
Total amount payable₹ 5,000 ₹ 5,000
-
Interest rate₹ 8.99% ₹ 8.01%
-
Total interest₹ 8.99% ₹ 8.01%
-
Total interest₹ 5,000
How to Use MSME Loan Calculator?
The MSME loan EMI calculator is exceptionally convenient to use. Follow these quick and simple steps to use the EMI calculator
Enter the total loan amount.
Next, select a suitable loan tenor as per your preference.
Enter the loan interest rate.
Click on the ‘Submit Button’ to generate the estimated value.
How is MSME Loan EMI Calculated?
The MSME business loan EMI calculator runs on the following formula:
EMI = P x r x (1+r)n/ (1+r) n-1
where;
P is the loan amount
R is the rate of interest
and N is the loan tenor
The EMI calculator lets you explore different scenarios to make the best decision.
Let’s say Arjun wants an MSME loan of ₹1 lakh. He enters this loan amount in the MSME EMI calculator and selects a loan tenor of 12 months with an assumed interest rate of 18%. The payable EMI on this MSME borrowing would come around to be ₹9,168. Arjun can continue to change the entered values to understand the most suitable combination of loan amount, interest rate, and tenor as per his budget and requirements.
How to Calculate Interest on MSME Loan?
The lender charges the interest to service the MSME business loan. It is calculated as a percentage of the principal amount. The interest components are further referred to as nominal interest and the APR. The nominal interest rate is the annual interest rate. On the other hand, APR is the total yearly cost that includes the processing fee, administrative fee, and more. The effective interest rate is calculated using the given formula (1+r) n-1, here, r is the applicable periodic interest rate.
Benefits of MSME Loan Calculator
An online MSME loan calculator provides the following advantages:
It helps you determine the approximate monthly outflow towards repayment.
It is beneficial in determining the loan amount that suits your business requirements.
It offers you the flexibility to choose the amount and tenure that will not add financial burden to your business.
It allows you to determine the EMI beforehand to budget your monthly outflows.
An online EMI calculator plays a crucial role in giving you a clear understanding of your future financial obligations when you avail a loan. Use the MSME EMI Loan Calculator on Bajaj Markets to make informed business decisions.
