November 27, 2022

Plan Repayment of Online Business Loans with a Business Loan EMI Calculator

Liquid Funds are necessary for a business’s expansion and growth. Whether a small business or a large enterprise, sufficient liquidity is an essential requirement for successful business operations. A company might need financial assistance for various reasons at different stages, like meeting working capital needs, purchasing new machinery, or scaling up the business. At any stage, a business owner can raise funds through an online Business Loan to meet their financial needs.

When an NBFC issues a loan to an entrepreneur, the borrower must repay it through EMIs within the agreed upon tenure. Missing the EMI payments impacts credibility and affects your financial stability. Therefore, calculating and planning EMIs is crucial. This is where a Business Loan EMI calculator can help. It helps foresee monthly expenses and plan budgets accurately by providing an actual estimate of the monthly EMIs. Borrowers can use this tool to plan the repayment according to their budget for different loan amounts and tenure.

Why do You Need a Business Loan EMI Calculator?

A loan that a business owner takes for business-related purposes is called a Business Loan. According to the funding requirements, it can be a short or long-term loan. The interest rate also varies based on the loan amount, credit score, loan tenure, and NBFC guidelines. Once borrowed, the borrower must repay the loan in Equated Monthly Instalments, known as EMIs, during the loan term. This makes it challenging for a layperson to derive a number they must pay each month. An EMI calculator is an online tool that makes these calculations much easier and faster than the pen-paper approach.

Important Terms Related to Business Loans

Here are some terms related to your loan.

1. Principal Amount: The principal amount is the loan amount a business owner is willing to borrow or the amount the NBFC is ready to sanction. It is a crucial factor in determining the monthly EMI amount, as a higher principal amount will lead to an increase in the required or offered EMI Plan.
2. Interest Rate: Loan companies determine an applicant’s interest rate based on multiple factors including, but not limited to, age, income, employment, financial obligations, and credit score. The higher the interest rate, the bigger the EMI amount.
3. Repayment Tenure: The EMI amount fluctuates significantly as the user changes the repayment tenure. If the user decreases the term, the EMI amount increases, and vice versa.

How Does a Business Loan EMI Calculator Work?

EMIs are loan payments in equal installments, which are a combination of principal and interest amounts. A loan EMI calculator uses three main variables to calculate the EMIs: loan amount, tenure, and interest rate. The mathematical formula to calculate EMIs is written below.

EMI = P × r × (1 + r)n/((1 + r)n – 1)

where P represents the loan amount, r is the interest rate, and n refers to the number of months in the loan tenure.

Many reputable NBFCs host a quick EMI calculator on their website to streamline this calculation process. This tool is simple to use and does not need any professional skills to operate. Users can select the loan amount, interest rates and loan tenure and explore their future EMIs.

loan amount, interest rate and loan tenure

EMI – calculator

Given below are the steps to use a Business Loan EMI calculator:

Visit the lending institution’s website and click Business Loan EMI Calculator.
Enter the loan amount, tenure and the interest rate you desire.
The calculator will display estimated EMIs in real time based on the entered information.

Once you adjust the sliders as per your requirement, the calculator will show you the EMIs. You can apply for the Business Loan based on the most suitable plan.

Since users can use this tool any number of times, it acts as an efficient mode to understand what’s required in the future and helps the decision-making process.

Benefits of Using a Business Loan EMI Calculator

An SME loan EMI calculator is an ideal tool to figure out a comfortable EMI to be paid monthly. It benefits the user in many ways. Read on.

Error-free Calculations

There are high chances of errors while calculating the EMIs manually. An EMI calculator works best to avoid these manual calculations. Calculating the EMIs on paper and rectifying the mistakes leads to time wastage, which the user could have invested elsewhere. An online calculator uses technology to calculate the EMIs in seconds with no chance of error.

Better Financial Planning

The primary benefit of using a Business Loan EMI calculator is that it helps estimate the monthly budget and better plan finances accordingly. When users know how much they need to spend each month, they can make a repayment plan accordingly.

User-Friendly Interface

The primary purpose of an EMI calculator is to help non-specialists calculate an EMI amount they must pay during the loan term before loan application. Using the tool simply involves moving the sliders across the loan amount and EMI amount until the user finds an ideal combination of interest rates and tenure.

Saves Time

Each business owner’s time is valuable. They can save it significantly by applying for an online Business Loan and using an EMI calculator to calculate the EMIs in seconds. With information like EMIs and interest rates, users can apply for a loan without stepping out of their house. Simply log on to the NBFC’s website and go for it.

Cost-Efficient

No intermediary is involved in calculating the EMI payments. Since the users can do it themselves, there is no cost or fees involved. You can visit Clix Capital’s website for the Free Business EMI Calculator.  

Conclusion

With an EMI calculator, users can ensure how much loan they can borrow and what repayment term they must select to pay the EMIs conveniently. Calculating the EMIs in advance helps secure a Business Loan with proper planning. So check out the EMI calculator and apply for an online Business Loan in just a few clicks.

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