What is a business loan?
A business loan helps the owner to fund his or her urgent/planned financial expenses and aid in funding the business which is to be repaid later.
The business, whether in terms of a startup or big capital invested, is preceded by expenses initially and income later. Business loans help through the difficult phase of initial process- of getting equipment, machineries etc. to expand the business networks. A business loan helps in scaling up the business for more profits and better services.
What is a business loan EMI calculator?
An EMI calculator helps in quickly determining the monthly installments of your plan. The EMI calculation takes into account the tenure, interest rate and loan amounts of your loan which helps in ascertaining the monthly installments of the repayment with ease.
The EMI (Equated Monthly Installments) refers to the amount that the borrower has to repay every month to the lender. You have to continue paying this EMI amount as calculated throughout the tenure of the plan until the entire principal amount and the added interest is repaid.
How does a business loan EMI calculator work?
An online business loan EMI calculator[NG1] uses three major variables to calculate the EMI amount. These are: Interest rate, tenure and loan amount.
Before deciding to apply for a business loan, you can make use of the EMI calculator for business available online to determine the plan which would well suit you.
Business loan EMIs are calculated using a very easy formula.
E = P x r x (1+r)n / (1+r) n-1
Here,
E stands for EMI amount
P stand for Principal Amount
r for the rate of interest in which you borrow the loan
n for the period in which the loan would be repaid
Why do You Need a Business Loan EMI calculator?
Saves Time: A business loan EMI calculator helps you find the EMI amount to be paid just by entering the three variables and for you to decide on the right plan is just one click away. Long gone are the days when it takes hours to do the calculations- the online calculator helps you in a second to apply for a startup or big capital investment business loan.
Accurate Understanding: It enables you to identify the cost that includes – total payable interest, fees and other applicable charges. The calculator helps in knowing the cost, which is pivotal for the loan and business.
Helps making the right decision: Arriving at the right decision can sometimes become tedious. The online calculator reduces this tension of yours as it can be used to check for varying sanctions to finalize the plan which suits your budget. Besides providing information on the different loans, the calculator also aids in helping you find the different repayment plans and tenures.
Optimize maximum value: The calculator sometimes also gives access to the amortization schedule. It depicts the monthly breakdown of loans with a briefing on how much you have to pay as principal repayment and interest payments throughout the tenure. You can find the best time to devote windfall gains or excess cash toward prepayment of loan with this information.