Car Loan EMI Calculator
Calculate your Business Loan Monthly Installment easily with the online Business Loan EMI Calculator in India
| EMI | Rs. 1658 |
|---|---|
| Total Interest | Rs. 10658 |
| Total Payment(Principal + Interest) | Rs. 10658 |
| Principal Amount | 40% |
| Interest Amount | 60% |
Taking the right financial investment decision for your company has never been easier than before the existence of a business loan EMI calculator.
A business loan EMI is an instalment amount you need to pay for a business loan until the full repayment is made before the end of the tenure.
A business loan The EMI calculator works on the same formula that people use for the manual calculation of EMI.
E = P x R x (1 + R) n/(1 + R) n– 1
The EMI is represented by E.
P is the principal amount.
R means the interest rate, and
n stands for tenure.
The interest rate is the amount charged by the lender to the borrower for the total loan amount. It is decided as per your credit score, income, repayment potential, and the bank statement of your running business. Moreover, it can be of two types: nominal and APR.
A nominal interest rate is charged annually, whereas the APR(Annual percentage rate) is the annual cost of the loan, comprising interest, processing fees, administrative fees, and so on.
To determine the interest rate charged, you can use the formula (1+rn)-1, where r is the periodic rate of interest.
Business is full of uncertainties. At a point in time, the cash flow may go down if your clients or customers are not making timely payments. Consequently, you can fall into the debt trap if no emergency fund is available to repay the EMI. On the other hand, knowing the repayment capability can help you with monthly expense management and repay the loan without any hassle.
Manual calculation of your monthly EMI is complicated because you will need to do a lot of calculations. This business loan EMI calculator eliminates this need by calculating the EMI automatically. It offers you convenience in using it anytime and anywhere you want.
Time is the most important asset for your business. The less time you put into getting results, the better you can focus on growing it. The business loan EMI calculator can process results as soon as you submit the values. It saves you plenty of time, which you can use for some important tasks in your business.
Business loan EMI calculators can also deliver quick results in a visual format. They make it easier to see the breakdown of your overall monthly payable EMI.
Most businesses involve a certain amount of risk because you never know whether the return will come or not. So, you always have to plan your finances to avoid running out of money at the end of the month. You can make smart and informed decisions only when the monthly EMI is known to you. The Business Loan EMI Calculator aids in doing so. Otherwise, not being able to repay the business loan on time can have a drastic effect on your business.
For a normal person, calculating your monthly EMI with the formula can be a headache. You may not get accurate results at the end, so it's right to use a business loan EMI calculator.
It's the main factor and serves as the foundation for calculating all your monthly loan instalment amounts. As you increase or decrease the amount, the EMI also rises or reduces proportionally.
The rate of interest is another significant factor that can affect your business loan EMI. If the interest rate is high, the EMI will also be higher and vice versa. It's fruitful to choose a financial institution offering you a lower rate of interest.
Tenure plays an eminent role in determining the monthly EMI on your loan. Having a loan tenure can benefit you as there will be more time for loan repayment. But at the same time, interest rates will be higher. Hence, you can use the business loan EMI calculator multiple times to choose the best loan tenure for you.
Financial institutions rely on several factors to figure out the creditworthiness of a borrower. The factors are:
Missing one EMI payment can result in a late payment fee charge, and the rest of the EMI payments are modified according to the missed payment.
The criteria for sanctioning loans to you differ from bank to bank. The best you can do is consult the bank and get all the required information to know your eligibility.
Yes, the EMI can change, but it depends on the bank and the interest rate it is offering. There are two types of interest rates: floating and fixed interest rates. Business owners who want to change EMI later can choose a floating interest rate because a fixed interest rate is not changeable.
The due EMI loan will be on the date the loan was first disbursed by the bank to you and the same will follow till the end of the tenure.
The majority of banks, but not all, offer simple EMI payment options via direct debit or electronic clearing services. You can also use cheques and deposits by visiting the nearest branch of the bank to pay the EMI.
Yes, you can do so by increasing your loan tenure period or paying some major part of your loan amount at the initial time.
Part prepayment is the partial or full payment of the loan amount before the end of the loan tenure. This is possible only when you have some surplus cash flow.