Business Loan EMI Calculator

There are several factors that influence your loan’s monthly instalments as mentioned below. Understanding these helps you make informed borrowing decisions:

1. Loan amount: The principal amount you borrow is the base on which your EMI is calculated. A higher loan amount directly increases your EMI.


2. Interest rate: The rate of interest determines the cost of borrowing. A higher rate increases the EMI and total interest payable. Use a business loan interest calculator to understand the impact.


3. Loan tenure: The repayment period also plays a crucial role. Longer tenures reduce the EMI amount but increase the total interest paid.


4. Credit score and profile: A good credit score may qualify you for lower interest rates, indirectly reducing your EMI burden.


5. Repayment frequency: EMIs are typically monthly, but in some structures, you may choose a customised frequency based on business cash flow.

When using a business loan EMI calculator in India, tweaking these parameters can helps assess multiple scenarios and select the best repayment strategy.

How to use IDFC FIRST Bank’s business loan EMI calculator?

Using IDFC FIRST Bank’s business loan EMI calculator is a simple and effective way to plan your business finances. Follow these steps:

1. Enter the loan amount

   Use the slider or type the amount directly into the field (e.g., ₹10,00,000).



2. Choose the interest rate

   Slide to adjust or enter your expected business loan interest rate.



3. Select the loan tenure

   Choose a term between 12 to 48 months either via the slider or by manually entering the figure.



4. View your EMI

   The EMI amount will auto-calculate and display instantly.



5. Check the amortisation schedule

   Analyse the detailed month-wise breakdown of principal and interest payments.

Whether your objective is business expansion or acquiring working capital, this EMI calculator for a business loan helps you make confident decisions backed by accurate calculations.

How is Business Loan EMI Calculated?

The EMIs on your business loans are calculated based on your principal loan amount, interest rate, and loan tenure. With a business loan EMI calculator tool, you get a real-time estimate of your monthly EMIs. Here is the standard formula used for calculation:

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

where:

• P = Principal loan amount


• R = Monthly interest rate (annual rate ÷ 12 ÷ 100)


• N = Loan tenure in months

Suppose you borrow ₹10 lakhs for your business from IDFC FIRST Bank at 14% p.a. for 4 years. Using the business loan calculator EMI, your EMI would be approximately ₹27,326/month.