Total Interest Payable
Rs.1,750
Total Payment (Principle + Interest)
Rs.1,01,750
Your EMI will be per month
Rs.1,01,750
How does a business loan EMI calculator work?
A business loan EMI calculator helps you know the monthly instalments you have to pay, thereby helping you plan your repayment with ease.
Enter the below on the EMI calculator:
- Principal (loan amount)
- Tenor
- Rate of interest
E = P x r x (1 + r) ^ n / [(1 + r) ^ n - 1]
Here,
- E is the EMI.
- P is the principal or loan amount.
- r is the rate of interest (calculated monthly.
- n is the tenor (calculated monthly).
You have a business loan of Rs. 20 lakh at 12% rate of interest for 4 years. As per the above formula, your EMI will be:
E = 20,00,000 x 12%/12 x (1 + 12%/12) ^ 4 / [(1 + 12%/12) ^ 4 – 1]
E = 52,668
Hence, your EMIs will be Rs. 52,668.
How to calculate your EMI using an unsecured business loans calculator?
A Business Loan EMI Calculator is simple to use. All you need to do is enter the loan amount, tenor (in months) and the rate of interest, and you’re done.
What is a business loan EMI?
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.
What is an EMI calculator for a business loan?
A small business loan calculator helps you calculate your monthly EMIs on your 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.
What is the interest rate of a business loan?
Bajaj Finserv offers low Business Loan interest rates, which make your EMIs affordable and help you repay the loan comfortably with lesser chances of defaulting.
The following is the interest and other charges on business loans:
| Type of charges | Rate |
|---|---|
| Rate of interest | 18% per annum onwards |
| Processing fees | Up to 3% on the principal |
| Penal interest | 2% per month |
| Bounce charges | Up to Rs. 3,000 (Inclusive of taxes) |
| Document processing fees | Rs. 1,449 with applicable taxes |
| Outstation collection charges | Rs. 65 with applicable taxes |
How to use a Business Loan EMI calculator?
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