Everything You Need To Know About Business Loan EMI Calculator

If you are wondering about how much you need to pay every month on the business loan that you plan to take, here’s some good news for you. Your job has been made easy by the business loan EMI calculators that are available online. These are powerful tools that can give you a clear picture of your monthly instalment payments for your business loan.

Why Business Loan EMI Calculator?

The primary idea of a business loan EMI calculator is to help borrowers like you, to get an easy break-up of the monthly payment on the loan amount to plan your finances. These calculators perform complex calculations using minimum details from you and are easily accessible online.

Factors Affecting Home Loan EMI

The Business Loan EMI Calculator takes into account the following parameters when calculating the EMI:

• Loan Amount: This is the indicative amount you want to borrow from the lender.
• Interest Rate: This is the indicative interest being charged on your loan, expressed as a percentage.
• Loan Tenure: This refers to the time period of the loan in  which the loan needs to be repaid in full and is expressed in months.
• EMI: This is the abbreviation for Equated Monthly Installment – the monthly sum paid to the lender for the loan.
• Total Interest Payable: This is the entire interest amount that you will pay for the loan.
• Total Amount Payable: All the amount, including principal and interest that you will pay during the loan tenure.

Limitations of Business Loan EMI Calculator

As easy as they are to use, business loan EMI calculators also have some inherent limitations. We have listed out a few of the drawbacks of the tool for you.

1. Does not take into account other charges: The tool calculates your monthly EMI based on the principal amount, interest rate, and loan tenure. So you may have to pay additional charges such as processing fees, foreclosure charges, or prepayment charges on the loan.
2. Does not consider inflation: You cannot expect business loan EMI calculators to take inflation into account on loan repayments. As the cost of living goes up, the real value of the EMI money goes down. So, your loan repayment schedule may be affected by this.
3. Assumes a fixed interest rate: Most business loan EMI calculators compute using fixed interest rates for the loan tenure. So, if you have a business loan with floating interest rates, the calculated amount on the tool could vary.

Conclusion

You may find the business loan EMI calculator tool handy in planning the financial aspects of your business loan. It is a simple, and easy-to-use tool that is available for instant use on many websites.

But please remember that the tool is not the final word on loan repayment. Please use it with discretion to get a rough idea of your monthly business loan EMI payments. It is better to consult the lender directly or seek the help of a financial advisor to assess your loan repayments.

Frequently Asked Questions