You can repay your Business Loan in various ways. One of the easiest methods is to pay your loan through an Equated Monthly Instalment (EMI), where your loan gets divided into equal fixed sums that are paid on a monthly basis until your loan has been fully repaid. An EMI consists of the loan’s principal amount and the interest accrued on it.
This repayment method makes it easy for small businesses that operate on tight cash and want to fund expensive purchases like equipment, plant and machinery, etc. but don’t have enough liquidity to pay up-front for such costs.
Repaying via easy EMIs with Bajaj Finserv, is an ideal way of paying back your business loan as it gives you the exact amount you have to pay at the end of every month for a given period.
A Small Business Loan calculator is an EMI calculator which helps you calculate your monthly payments on business loan.
This calculator helps you to predetermine the amount need to pay at the end of every month, helping you to opt for a loan amount that matches the short-term plans of your business and thus, facilitating your cash resources planning.
An EMI calculator for Business Loan works on the following parameters to compute your EMI –
The formula used 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 on a monthly basis
‘n’ is the tenor or duration of the loan
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