Business Loan EMI Calculator

It is imperative to determine the amount of EMI (Equated Monthly Instalment) before availing a business loan. Knowing it helps in ascertaining the principal amount of the loan that should be availed so that the EMI is affordable and does not impact the monthly financial needs of the business. The business owner can estimate his EMI online using our business loan EMI calculator.

Factors that Affect Business Loan EMI

There are a few factors that affect the monthly payment towards loan account:

1. Loan Amount: the principal amount is the sum that is borrowed from the lender. It is a significant component of the EMI. Higher the principal, higher will be the EMI amount.

2. Interest Rate: the interest rate is the rate at which the lender offers the business loan. It is an important determining factor of EMI as higher the rate, higher the EMI and vice versa.

3. Loan Tenure: it is the time period for which the loan is availed. It has a significant impact on EMI. Longer the loan tenure, lower the EMI. However, longer tenure also means that the interest incurred would also be high.

All these three factors are entered in the EMI calculator to check the EMI.

Business Loan EMI Formula

EMI is a fixed amount that needs to be paid towards the business loan account. Essentially, it is composed of two main components, namely the principal amount and the loan interest rate levied on it. The formula for calculating EMI is:
EMI = [P x I x (1+I) ^ n] / [(1+I) ^n-1]
Where,
P = Principal amount
I = Rate of interest
N = Tenure

It is recommended to use a business loan EMI calculator as it gives accurate and quick estimates.

Business Loan Calculator Benefits

The loan EMI calculator helps to know the cost of the loan in terms of EMI. Once the calculation is done, if the EMI is more than what one can afford, he can adjust the same either by increasing the loan tenure or reducing the loan amount. Besides, calculating the EMI is a cumbersome process where an online EMI calculator comes handy. It makes the EMI calculation more efficient and time-saving process.
The following are the benefits of using an online loan calculator:

1. Time-Saving: using EMI calculator saves time from doing burdensome calculations. Just enter the necessary loan details like loan amount, rate of interest, and loan tenure to calculate the EMI.

2. Accurate Results: calculating EMI manually may lead to wrong calculations. Hence, EMI calculator is recommended.

3. Plan Finances: calculating EMIs helps in planning the monthly spending before availing an SME loan.

Business Loan Prepayment

Business loan prepayment means paying a part or the entire loan amount before the due date. There are many times when business owners have enough funds to repay the loan before the tenure ends, and they wish to free themselves from the debt. In this case, they can foreclose the loan account. Notably, this saves the interest cost as well.

While many loan lenders have a prepayment penalty, ZipLoan offers 0 prepayment charges after six months (excluding pre-EMI). In simple words, with ZipLoan business loan, the business owner can choose to foreclose his business account at absolutely no cost after the payment of 6 EMIs.

Business Loan Calculator FAQs

1. What is a business loan EMI calculator?

   A business loan EMI calculator helps in calculating EMI effortlessly. Here, the borrower just needs to fill the principal amount, interest rate, and loan tenure, and he will get the EMI.

2. How is business loan EMI calculated?

   A business loan EMI can be calculated online through an EMI calculator. Just enter the loan amount, interest rate, and tenure to know the EMI.

3. What will be my monthly EMI?

   The monthly EMI will depend on the loan amount availed, its interest rate, and the tenure. Suppose you have availed a loan of Rs. 1,00,000 at 15% for 12 months. The EMI will amount Rs. 9,026 approximately.

4. How ZipLoan EMI calculator helps in calculating EMI?

   ZipLoan EMI calculator is very easy to use. You just need to enter the loan amount, small business loan interest rate, and tenure to get the results.

5. Why is it important to calculate EMI?

   Calculating EMI through the ZipLoan EMI calculator helps in maintaining stability in future payments. When a loan is availed, you promise to repay it every month on a fixed date. So, before considering to avail the loan, it is vital to consider the stability of the revenue, income, and monthly expenses.

6. How can I apply for a business loan from ZipLoan?

   To apply for a business loan with ZipLoan, fill our online loan application with your personal and business details. Our executive will call you to assist you in the process further.

7. How much does it take to get a loan from ZipLoan?

   ZipLoan disburses the business loan in just three days* if you submit all the required business loan documents on time.

8. Do I need to provide any security or collateral for availing a business loan?

   Yes. It is required to provide a security to avail a business loan.