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Business Loan EMI Calculator

Managing a business requires strategic planning and precise financial management. With the business loan EMI calculator on Bajaj Markets, you can quickly estimate your monthly instalments, ensuring they fit in your cash flow.

Your Business Loan EMI

₹ 2,327

Total Interest Amount

₹ 39,610

Principal Amount

₹ 100,000

Total Payable Amount

₹ 139,610

Loan Amount

Interest Rate

- +

Tenure

- +

Check Offer

You can also make instant comparisons between loan offers from multiple Business Loan providers on Bajaj Markets.

How to Use Our Business Loan EMI Calculator?

Using the business loan EMI calculator on Bajaj Markets is straightforward and efficient. You will have to enter the following details:

Principal amount – This is the amount you wish to borrow. Business loans, available on Bajaj Markets, can range up to ₹50 Lakhs, depending on your eligibility and requirements.
Interest rate – This is the annual borrowing cost charged by the lender, typically levied on a per-year basis

Tenure – This is the time over which you plan to repay the loan, often ranging from 12 to 96 months

Once these details are filled, you will get the EMI amount instantly. The calculator will also provide details such as total interest payable and complete repayment cost. You can download the amortisation schedule for a more detailed view of how each instalment contributes towards the repayment of your loan.

Why Use the Business Loan EMI Calculator on Bajaj Markets?

Here are some reasons to use the calculator on Bajaj Markets when opting for a business loan:

Real-time Comparison of Offers

You can instantly compare EMI amounts and total repayment costs from a variety of lenders on Bajaj Markets. This allows you to select the best loan for your business needs.

Detailed Amortisation Schedule

Check how each EMI breaks down into principal and interest repayments. This gives you insights into planning for early repayments, pre-closures, or refinancing options.

Accurate EMI Calculations

The calculator uses a precise algorithm to calculate EMIs, removing the chances of manual errors and helping you plan with confidence

Save Time and Resources

The calculator gives you instant results, saving you valuable time to focus on business strategies, rather than calculating the EMIs manually.

Unlimited Free Calculations

You can check different combinations of loan terms to see which suits your business needs the best, all free of cost

User-friendly Interface

With a clean and intuitive design, the calculator is easy to use and ensures you understand the repayment details easily

Accessible Anytime, Anywhere

Whether you're using a desktop or a mobile device, you can access the calculator on the official Bajaj Markets website or app, at your convenience

How is the EMI Calculated?

The EMI for a business loan is calculated using the following formula:

EMI = P x R x (1+R)^N / [(1+R)^N - 1]

Where:

P is the principal loan amount
R is the interest rate

N is the loan tenure

Let’s break it down with an example:

Assume you’ve taken a loan of ₹10 Lakhs at an interest rate of 9.75% p.a. for a tenure of 24 months.

P = ₹10 Lakhs
R = 9.75% p.a.

N = 24 months

The annual interest rate needs to be converted to the monthly numeric value before using it in the given formula. In this case:

R = 9.75 / 12 / 100

Thus, R = 0.008125

Next, let’s enter the loan details in the formula:

EMI = {1000000 x 0.008125 x (1 + 0.008125) ^ 24 / [(1 + 0.008125) ^ 24 - 1]}

Now, let’s solve this:

EMI = {1000000 x 0.008125 x (1 + 0.008125) ^ 24 / [(1 + 0.008125) ^ 24 - 1]}

EMI = [1000000 x 0.008125 x 1.214354 / (1.214354 - 1)]

EMI = (1000000 x 0.008125 x 1.214354 / 0.214354)

EMI = ₹46,029.59

Such manual calculations can be quite tedious and time-consuming. Also, the possibility of errors and miscalculation is quite high. An EMI calculator can complete these complex computations much more efficiently and also provide other essential information. This includes the total interest charges, aggregate repayment cost, and a detailed amortisation schedule.

Considerations When Using the Business Loan EMI Calculator

The following tips can help you make the most of the calculator to improve your financial planning and management:

Double-check the Details

Ensure that you enter the correct loan amount, interest rate, and tenure to get the most accurate results

Compare Various Scenarios

Try different combinations of loan terms and compare the EMIs to find an offer that best matches your business’ financial situation

Include Other Costs

Remember to factor in other costs like processing fees, prepayment charges, and GST to get a complete view of your loan expenses. These are not considered by the EMI calculator and must be calculated separately.

Check the Impact of Different Tenures

Test different loan tenures to see how they affect your EMIs and the overall repayment cost. A longer tenure may lower the EMIs but increase the total interest payable and vice versa.

Evaluate Affordability

Use the EMI calculator to ensure that the monthly payments fit within your business’s cash flow. This prevents any potential financial strain on your operations.

Check the Amortisation Schedule

The amortisation schedule helps you understand how the loan principal reduces over time and how much you’ll pay in interest. This is crucial for planning prepayments or loan restructuring.

Regularly Re-calculate Your EMIs

Re-assess your EMIs as your business grows or if your financial situation changes. This will help you plan for refinancing or restructuring the loan to align with your evolving needs.

Glossary

Terms	Definition
Principal Amount	The total sum of money borrowed from the lender, on which interest is levied
Interest Rate	The cost charged by the lender for borrowing the money, which is typically represented as a percentage.
Loan Tenure	The duration over which the loan is repaid, starting from the loan disbursement date until full repayment
Equated Monthly Instalment (EMI)	A fixed monthly payment to the lender, consisting of principal and interest, that services the loan as the tenure progresses
Amortisation Schedule	A detailed table showing how each EMI is divided between principal repayment and interest cost over the tenure
Prepayment	When a borrower repays part of the loan principal before the scheduled due date, leading to a drop in the interest costs
Foreclosure	The process of fully repaying the outstanding loan balance before the end of the loan tenure
Total Repayment Cost	The full amount payable over the loan tenure, including principal, interest, and any additional fees
Business Turnover	The total revenue generated by a business over a specific period, typically measured annually
Business Plan	A formal document outlining a company’s goals, strategies, market analysis, financial projections, etc.
Cash Flow	The movement of money in and out of a business, used to track financial health and operational efficiency

Disclaimer

The calculation results are based on the values you enter in the calculator. Your EMI amount (including the actual interest amount charged) will depend on the prevailing rates. The results are neither certified nor guaranteed. The repayment schedule presented is for illustration purposes. Confirm the values with your lender prior to applying for the business loan.

Reference of all T&C necessarily refers to the terms of the Partners as regards to pre-approved offers and loan processing time amongst other conditions.

Frequently Asked Questions

Business Loan EMI Calculator

What is a business loan EMI?

A business loan EMI is the monthly payment made to service your loan. It includes a portion of the principal and the interest. Use the amortisation schedule to understand how the EMI components change over time.

Does choosing a longer tenure reduce EMIs for a business loan?

Yes. A longer tenure usually lowers the EMI amount but increases the total interest payable. To understand this better, here’s an example. Assume you took a business loan of ₹10 Lakhs, the interest rate for which is 9.75% p.a. Provided below is a difference in EMI amounts as the tenure increases:

Tenure	EMI Amount
12 months	₹87,799.66
24 months	₹46,029.59
36 months	₹32,149.94
48 months	₹25,242.69
60 months	₹21,124.24
72 months	₹18,400.02
84 months	₹16,472.30
96 months	₹15,042.20

*Note: The mentioned values are for illustrative purposes only. The actual values may differ depending on the lender’s policies and factors like credit score etc.

Always compare tenure options and consider the total cost of the loan before applying.

Can I reduce my business loan EMIs?

Improving your credit profile can help you secure lower interest rates. If you've already taken a loan, consider refinancing or transferring the balance of your loan to lower your EMIs.

Can my EMI change with a loan restructuring?

Yes. The EMI amount and repayment schedule may be revised when you restructure your loan or opt for a balance transfer, depending on the lender's terms.

Does the EMI calculator consider additional charges?

No. The EMI calculator only accounts for the loan amount, interest rate, and tenure. Additional costs such as processing fees or GST need to be calculated separately.

Does the EMI calculator consider business loan tax benefits?

No, the EMI calculator only calculates your monthly instalments based on the loan amount, interest rate, and repayment period. Tax benefits related to business loans, such as claiming interest payments as deductions, are calculated separately in your tax filings.