While taking a business loan, the borrower must know the repayment terms. A business loan EMI calculator is vital in helping borrowers make wise financial decisions. Knowing beforehand the monthly installments (EMI) helps manage cash flow accordingly, synchronize loan repayments with business income, and avoid financial stress effectively.
What is a Business Loan EMI Calculator?
A business loan EMI calculator is an online tool to determine the monthly loan repayment amount. By entering key details such as loan amount, interest rate, and tenure, the EMI Calculator for Business Loan instantly provides the EMI amount, helping you plan your finances better.
How to Calculate Business Loan EMI?
The business loan EMI calculator calculates EMIs based on a standard formula:
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
Where:
P = Principal loan amount
r = rate of interest per month (to get, divide the annual interest rate by 12)
n = Loan tenure in months
This formula gives precise, immediate answers, eliminating the need for manual calculations.
Example:
Suppose you borrowed ₹50,00,000 as a business loan at 12% interest rate per annum for 5 years (60 months). The EMI formula would be:
P = ₹50,00,000
r = 12% / 12 = 1% = 0.01
n = 60 months
On calculation, your monthly EMI would be approximately ₹111,222. An online business loan EMI calculator allows you to easily play around with different loan amounts, interest rates, and tenures to arrive at the best EMI that fits your financial capacity.
Benefits of Using the Business Loan EMI Calculator
- User-Friendly and Accessible: Ruloans provides a free, easy-to-use online business loan EMI calculator so you don’t have to compute manually.
- EMI On Different Loan Amounts, Tenures, And Interest Rates: Customize the loan amount, tenure, and interest rate and see how it affects your EMI.
- Prepayments of Plans: A well-drafted EMI structure will let the borrower know if he can reduce the loan burden through prepayment.
- Clear Loan Decisions: Helps select loans that best fit the repayment capacity and objectives of the business.
- No technical knowledge required: The tool is designed for everybody, and you don’t have to be a finance professional.
How to Use a Business Loan EMI Calculator?
The Online business loan EMI calculator at Ruloans is simple and takes many steps. Follow the below steps to get your EMI calculated:
- Visit Ruloans: Go to the official Ruloans website and search for the business loan EMI calculator available on their portal.
- Input the Loan Amount: Specify the loan amount you wish to obtain for business purposes.
- Specify the rate: This requires you to specify the lenders’ interest rate.
- Choose your loan tenure: Choose an appropriate repayment tenure (in months or years) per your financial planning.
- See Your EMI Results: The calculator will instantly show your monthly EMI and the total interest payable.
- Adjust Loan Parameters (Optional): If the EMI does not fit your budget, you can change the loan amount, tenure, or interest rate to see other options.
With these steps, you can make informed decisions on the business loan with sound judgment.
What is the method to calculate business loan interest rates in India?
Lenders in India charge interest on the amount of business loans that are expressed as a percentage of the principal. The following are two primary interest rates: The nominal interest rate is the rate charged annually on the loan. The Annual Percentage Rate (APR) represents the total annual cost of a loan, including interest, processing fees, and other charges. An effective interest rate is determined mathematically by calculating:
(1 + r^n) – 1
Where r denotes the periodic rate of interest.
Why One Should Use an Online Business Loan EMI Calculator Before Applying for a Business Loan?
- Improved Financial Planning: A business loan is a form of long-term financial commitment. Knowing your EMI in advance allows you to plan accordingly and effectively manage your cash.
- Transparency Regarding Loan Charges: The business loan EMI calculator depicts the total interest payable and the total amount to be repaid, thereby giving an idea of the whole cost involved in the loan.
- Increased Confidence Regarding Loans: A clearer picture of your EMIs diminishes uncertainty and enables a more confident approach to loan repayment.
- Customized Loan Solutions: The loan amount, interest rate, and tenure can be customized to formulate a repayment schedule that aligns perfectly with the requirements and financial capacity of the business.
A loan eligibility calculator determines whether one would be eligible to receive a business loan based on financial conditions, thereby ensuring that one applies for amounts and tenures that are well within the eligibility limits.
Final Words!
A business loan EMI calculator is a practical tool that helps manage loan repayments. Emi calculators are essential for potential borrowers to assess their ability to repay loans. Ruloans, India’s largest loan distributor, provides a full range of financial products, including business, personal, home, educational, and insurance loans. Being a Business Loan DSA Agent with Ruloans would earn you very lucrative commissions while enjoying the benefits of our vast network of 275+ financial partners. The Ruconnect App will make getting a loan more manageable and provide you with EMI calculators for quick tracking and instant payouts so that your journey as a loan distribution partner will be smooth and rewarding.
