Business Loan Calculator
Calculate the monthly EMI, total interest, and total repayment for a business loan based on the loan amount, interest rate, and tenure you enter.
- Free to use
- Accurate results
- No registration required
- Works on all devices
Your result
₹23,268.25
Monthly EMI
AI explanation
Formula
EMI = P × r × (1 + r)^n / ((1 + r)^n − 1)Worked example
₹10,00,000 business loan at 14% for 5 years
| Field | Value |
|---|---|
| Business loan amount | 1000000 |
| Interest rate (per annum) | 14 |
| Loan tenure (months) | 60 |
| Monthly EMI | 23268.25 |
| Total interest payable | 396095 |
| Total payment (principal + interest) | 1396095 |
Assumptions
- Uses the standard reducing-balance (amortizing) EMI formula.
- Assumes a fixed interest rate for the full tenure (does not model MCLR/repo-linked floating rate resets some business loans use).
- Does not include processing fees, collateral valuation charges, or other lender-specific costs.
Frequently asked questions
What documents affect the interest rate offered on a business loan?
Lenders typically assess business vintage, turnover, ITR/GST filings, credit score, and whether the loan is secured or unsecured — each of these can move the rate offered.
Is collateral required for a business loan?
It depends on the lender and loan amount. Government schemes like MUDRA and CGTMSE-backed loans can be collateral-free up to certain limits; larger business loans often require collateral or a personal guarantee.
Can I part-prepay a business loan?
Most lenders allow prepayment, though some apply a prepayment penalty on business loans (unlike floating-rate retail loans, which the RBI has restricted from prepayment charges). Check your loan agreement.
Related calculators
Related articles
Sources
- Reserve Bank of India — Fair Practices Code for Lenders — Reserve Bank of India. Effective 01-05-2015, reviewed 12-09-2026.
This calculator provides an estimate based on the standard reducing-balance formula and does not include processing fees, collateral charges, or other lender-specific costs. Actual EMI offered by a bank or NBFC may differ.
Report a calculation issue