Business Loan EMI Calculator

Calculate your business loan EMI instantly. Our free MSME and commercial loan EMI calculator helps you plan your business financing with accurate monthly payment calculations.

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Enter Loan Details
₹10.00 L
₹1 Lakh₹10 Crore
12%
8%24%
5 Years
1 Year15 Years
Loan Breakdown
Total₹13,34,667
Principal Amount
₹10,00,000
Total Interest
₹3,34,667

Monthly EMI

₹22,244

Total Interest

₹3,34,667

Total Amount

₹13,34,667

Loan Summary
Principal
₹10,00,000
Interest Rate
12% p.a.
Tenure
5 years (60 months)
Interest to Principal
33.5%

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What is Business Loan EMI?

Business Loan EMI (Equated Monthly Installment) is the fixed monthly payment that a borrower makes to the lender to repay a business loan. This payment includes both the principal amount and the interest charged on the loan. Business loans are specifically designed to help entrepreneurs, startups, MSMEs (Micro, Small, and Medium Enterprises), and established businesses meet their financial requirements for various purposes such as working capital, business expansion, equipment purchase, inventory management, and other operational needs.

Understanding your business loan EMI is crucial for effective financial planning. It helps you determine whether the loan amount and repayment terms align with your business's cash flow and profitability. A well-calculated EMI ensures that your business can comfortably manage the monthly repayments without straining its operational finances.

How Business Loan EMI is Calculated

The EMI for a business loan is calculated using a standard mathematical formula:

EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]

Where:

  • P = Principal loan amount (the total amount borrowed)
  • R = Monthly interest rate (annual rate divided by 12 and then by 100)
  • N = Loan tenure in months (number of years multiplied by 12)

Example Business Loan EMI Calculation

For a business loan of ₹10,00,000 at 12% for 5 years:

  • Monthly EMI: ₹22,244
  • Total Interest Payable: ₹3,34,640
  • Total Amount Payable: ₹13,34,640

Factors Affecting Business Loan EMI

  • Loan Amount: Higher loan = Higher EMI. Borrow only what your business needs
  • Interest Rate: Rates range from 10% to 24% based on lender and profile
  • Loan Tenure: Longer tenure = Lower EMI but more total interest
  • Business Credit Score: Score above 750 qualifies for lower rates
  • Business Vintage: Established businesses get better terms
  • Type of Loan: Secured loans have lower rates than unsecured

Benefits of Using Business Loan EMI Calculator

  • Instant and accurate calculations
  • Better financial planning for your business
  • Compare different loan offers easily
  • Find optimal loan tenure
  • Prepare before loan application

Types of Business Loans in India

  • Term Loans: Traditional loans with fixed repayment schedules (₹50,000 to ₹50 crores)
  • Working Capital Loans: Short-term loans for operational expenses
  • MSME/SME Loans: Government-backed loans with lower interest rates
  • Equipment Finance: Loans for purchasing machinery and equipment
  • Business Line of Credit: Flexible financing with pay-as-you-use interest
  • Invoice Financing: Loans against pending invoices (80-90% of invoice value)

Frequently Asked Questions

The EMI for a ₹10 lakh business loan depends on the interest rate and tenure. For example, at 12% interest rate for 5 years, the EMI would be approximately ₹22,244. At 15% interest for 3 years, the EMI would be around ₹34,665. Use our calculator above to get accurate EMI figures for your specific loan parameters.

MSME loan interest rates in India typically range from 8% to 16% per annum, depending on the lender and loan type. Government-backed schemes like MUDRA loans offer rates starting from 8-9%. Public sector banks generally offer rates between 10-14%, while NBFCs may charge 12-18%. Factors like business vintage, turnover, credit score, and collateral affect the final rate offered.

Yes, you can get unsecured business loans without collateral in India. Many banks and NBFCs offer collateral-free loans up to ₹50 lakhs to ₹2 crores for eligible businesses. Government schemes like MUDRA provide loans up to ₹10 lakhs without collateral. However, unsecured loans typically have higher interest rates and may require a personal guarantee or strong business financials.

The maximum tenure for business loans in India varies by lender and loan type. Term loans typically offer tenures of 1 to 7 years, with some lenders extending up to 10-15 years for secured loans. Working capital loans usually have shorter tenures of 12 to 36 months. Equipment finance loans may extend up to 5-7 years. The ideal tenure depends on your repayment capacity and business cash flow.

Common documents required for business loan include: Business registration documents (GST registration, Shop Act license, MSME registration), KYC documents (PAN card, Aadhaar, address proof), Financial documents (ITR for last 2-3 years, bank statements for 6-12 months, audited financial statements), Business proof (business vintage proof, office/factory ownership or rental agreement), and additional documents like project report for new businesses or collateral documents for secured loans.
Disclaimer

This calculator is provided for informational purposes only. The results are estimates and should not be considered as financial advice. Actual values may vary based on various factors. Please consult a certified financial advisor before making any financial decisions.

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