Obtaining a Business Loan requires careful consideration of the required monthly repayments. Calculating the EMI manually can be time-consuming and error-prone. This is where an online Business Loan EMI calculator can be helpful. These calculators make complicated calculations quick and accurate. They take into account several important factors that determine the EMI amount. Business Loan EMI calculators ensure borrowers understand the monthly repayment from the start. This helps business owners create a repayment plan for their cash flow and budget.
What is a Business Loan EMI Calculator?
An EMI calculator is a useful online tool that helps determine how much you would pay monthly for a Business Loan. By entering key details into the calculator, it quickly calculates the equated monthly instalments (EMIs) you will pay. With the calculator, applicants can choose a Business Loan tenure that suits their repayment capacity. It allows business owners to compare loan plans offered by different lenders.
How to Use a Business Loan EMI Calculator?
Using an online Business Loan EMI calculator is a straightforward process.
- Visit a reliable lending institution’s website and locate the Business Loan EMI Calculator.
- Use the slider in the calculator to choose the loan amount you wish to take or type in directly.
- Use the slider in the calculator to adjust the interest rate applicable to your Business Loan.
- Use the slider in the calculator to select the repayment period or loan tenure.
- You will readily see the estimated EMI amount on the screen.
What are the Benefits of Using a Business Loan EMI Calculator?
A calculator offers several advantages, making it an indispensable tool for those seeking a loan for business in metro cities like Chennai, Mumbai, Kolkata or Delhi.
- Immediate results: An EMI calculator instantly calculates your EMI amount, interest payable and total repayment amount. This saves considerable time compared to manual calculations.
- Easy accessibility: Business Loan EMI calculators are accessible online, allowing you to easily determine various loan options’ affordability.
- Greater accuracy: Manual calculations often contain errors, while EMI calculators provide accurate results consistently thanks to their automated processes.
- Options comparison: The calculator lets you easily compare EMIs for different loan amounts and tenures. This helps you identify your business’s most suitable loan terms.
- Improved financial planning: By determining loan repayments in advance, you can create a repayment plan that fits within your company’s budget.
Eligibility Criteria for Entrepreneurs Seeking Loans for their Businesses
Here are the main eligibility requirements if you want to apply for a loan for your business in Chennai or any other city in India.
- Age requirement: Most lenders require Business Loan applicants between 25 and 65 years old.
- Business experience: Lenders typically prefer applicants with 3-5 years of relevant experience in running their businesses.
- Good credit score: The applicant should have a credit score of 700+ to be eligible for an unsecured Business Loan.
- Good turnover: When applying for an online business loan, ensure your business has a substantial sales turnover. The turnover demonstrates the business’s viability.
- Submission of financial statements: Lenders will ask for the business’s Income Tax Returns (ITR) for the past three financial years. Besides, GST returns for the financial year, the latest audited financials and the last six months’ bank statement.
Key Determinants of Business Loan EMI Calculation
- The loan amount: A higher loan amount means a higher EMI. Eligible applicants can get a Business Loan of up to Rs 40 lakh without collateral.
- The interest rate: A higher interest rate leads to a greater interest component increasing the loan cost.
- The loan tenure: You will repay the loan for up to 60 months. However, a longer tenure reduces the EMI but increases the total interest paid.
- The EMI: Each EMI consists of a portion of the principal loan amount and the applicable interest rate. The number of EMIs will depend on your loan tenure.
- The total loan cost: The loan costs will depend on the loan amount, tenure, interest rate and other costs like processing fees, prepayment/foreclose charges, etc.
In conclusion, an online Business Loan calculator is a valuable resource for any entrepreneur seeking a loan for business in Chennai or any other city in India. It allows you to calculate the instalment amount required to repay each month throughout the loan tenure. You can even compare loan combinations and choose the one that best suits your business’s interests.