Business Loan EMI Calculator

A business loan EMI calculator helps you predetermine the amount payable at the end of every month. It will help you opt for a loan amount that matches the plans of your business and plan your cash resources accordingly.

The interest rate on business loan is between 14% to 18% p.a

You can get an MSME loan of up to Rs. 80 lakh by fulfilling the following eligibility criteria:
 

• You must be between 21 to 80 years

• You must have a CIBIL Score of 650or higher
   

You must have a business running for at least 3 years.

Bajaj Finance Limited offers collateral-free business loans of up to Rs. 80 lakh for eligible applicants. This is one of the highest unsecured business loan limits among Indian NBFCs.

Under the flat rate method, interest is calculated on the original loan amount for the entire tenure (rare for formal lending). Under the reducing-balance method (used by Bajaj Finance Limited and all RBI-regulated NBFCs), interest is calculated only on the outstanding principal — which decreases each month as you repay. The reducing-balance method results in lower total interest. For example, Rs. 10 lakh at 15% flat over 3 years costs Rs. 4,50,000 in interest; the same loan at 15% reducing-balance costs approximately Rs. 2,59,000 in interest — a saving of nearly Rs. 1.9 lakh. Always confirm which method a lender uses before comparing rates.

Yes. Prepaying a portion (or all) of your outstanding business loan principal reduces future interest since interest is computed on the declining balance. Bajaj Finance Limited allows part-prepayment after 6 EMIs, subject to applicable charges. For example, if you have Rs. 15 lakh outstanding at 18% p.a. with 36 months remaining, a lump-sum prepayment of Rs. 5 lakh reduces your future interest burden by approximately Rs. 1.5 lakh. Use the EMI calculator to model different prepayment scenarios by reducing the loan amount and recalculating.

Yes. Interest paid on a business loan is deductible as a business expense under Section 37(1) of the Income Tax Act, 1961, provided the loan is used exclusively for business purposes. The deduction is available on an accrual basis (for companies and LLPs maintaining mercantile accounts). For example, if you pay Rs. 4 lakh in loan interest in FY 2025–26 and your business is in the 25% tax slab, your net tax saving is Rs. 1 lakh. Processing fees and ancillary charges are also deductible as business expenses. Consult a Chartered Accountant for advice specific to your business structure.

Your monthly EMI is a fixed cash outflow that must be planned into your working capital cycle. A common benchmark is that your total loan EMIs (across all loans) should not exceed 30%–40% of your monthly net business income. For a business with monthly revenues of Rs. 10 lakh and net income of Rs. 2.5 lakh, an EMI above Rs. 75,000– Rs. 1 lakh may strain day-to-day operations. Use the EMI calculator to model different loan amounts and tenures until the monthly payment is comfortably within this threshold. For businesses with seasonal revenue patterns, a longer tenure with lower EMIs may be preferable to preserve liquidity during lean months.

Yes. Using the Bajaj Finserv Business Loan EMI Calculator is completely free and does not require you to enter your personal details or PAN number — so it has no impact on your Credit score. Your Credit score is only checked when you formally apply for the loan (this is called a "hard inquiry"). Using the calculator is a planning exercise only; it does not trigger any credit inquiry.