Business Loan EMI Calculator
What is a business loan EMI?
EMI or Equated Monthly Installment refers to the monthly repayments you make to the loan issuer. An EMI usually consists of two parts: the principal amount borrowed and the accrued interest. The accrued interest is calculated on the interest rate that is prescribed at the time of loan disbursal. The business loan EMI is calculater based on your loan amount, the interest rate quoted at the time of disbursal, and the total tenure of the loan.
These are 4 basic elements to determine the EMI of any loan amount.
r = Rate of interest at which you will be borrowing the loan.
n = tenure of the loan over which you will be repaying the loan.
The formula to calculate the EMI of the amount of any business loan:
E = P x r x (1+r) n / (1+r) n-1
Few points to remember about EMI
When you miss one EMI payment, all the other EMI payments are adjusted to accommodate the missed payment. All other future EMI payments will increase, and an overdue payment fee is also be charged.
To know how much you will pay every month in terms of the principal amount and the accrued interest amount, an EMI calculation is needed. Calculate your EMIs by EMI calculator It will help you understand what you will be potentially paying, and you will be able to plan your payments accordingly.
Mostly banks and financial institutions allow you to repay your monthly EMIs online through direct debit or electronic clearing service (ECS). Otherwise, you can also choose to pay your EMI by cheque and deposit it at the nearest branch.