How to use Apnapaisa Business Loan EMI Calculator?

A Business Loan can be availed to meet working capital needs without having to disturb your personal finances. That said, a miscalculated Business Loan resulting in a high EMI burden can adversely affect your business by piling on to your liabilities.

Apnapaisa Business Loan EMI Calculator helps you calculate your Business Loan EMI for different interest rates, principal amounts and loan tenures. As soon as you enter the variables of your business loan, Apnapaisa Business Loan EMI Calculator instantly fetches you the expected EMI. It’s available 24*7 and is completely free of cost.

You can use the slider to adjust the individual variables, or input your exact numbers directly, to find the right EMI amount you’re comfortable repaying every month, and that doesn’t put a strain on your business. A pie chart depicting the breakup of the total payment (total principal vs total interest payable) is also displayed.

Why should you calculate the Business Loan EMI before taking the loan?

The amounts borrowed as Business Loans are usually huge and come with high rates of interest. This is because of the risks involved in running a business.

Calculating the Business Loan EMI before taking the loan helps you know what you will be potentially paying every month, and thus help you plan out your payments accordingly. Moreover, it also helps you understand how much you will be paying every month towards repayment of the principal amount and how much towards interest payable.

How can I reduce the EMI amount of my Business Loan?

There are multiple ways in which you can reduce the EMI amount of your Business Loan.

  • Credit Score: A Credit Score is a number that depicts a borrower’s credit worthiness. The higher your Credit Score, the more favourable you are to Banks/NBFCs. A Credit Score above 700 is usually considered to be good. Having a good Credit Score plays a significant role in reducing the interest rate on a Business Loan. Thereby, reducing the EMI amount on your Business Loan.            

  • Longer Tenures: Another way to reduce your Business Loan EMI is by increasing its tenure. While this reduces your EMI, it also increases your overall interest payable.

  • Balance Transfer: Balance Transfer is considered by many as the best way to reduce your Business Loan EMI. It’s a method by which you can transfer your Business Loan to a different Bank/NBFC who’s providing a more favourable interest rate. Thereby, reducing the EMI amount on your Business Loan.

  • Prepayment: Prepayment is a partial or total repayment of your Business Loan before the end of its tenure. In case of partial prepayment, the total interest payable is now calculated only on the Principal amount that’s outstanding. As the Principal amount has been significantly reduced, so will the interest payable on it. Thus, resulting in a reduced EMI.