Estimate your monthly business installments before you apply.
Your Estimated Monthly EMI
₹34,421
Download your full month-by-month repayment schedule
This calculator is for illustration only. Actual EMI, interest rate, and tenure depend on the lender's assessment of your business profile.
Year-by-year breakdown of your business loan repayment.
| Year | Principal (₹) | Interest (₹) | Total Payment (₹) | Balance (₹) | Loan Paid To Date |
|---|---|---|---|---|---|
| FY27 | 1,62,148 | 78,799 | 2,40,947 | 8,37,853 | 16.21% |
| FY28 | 3,11,744 | 1,01,308 | 4,13,052 | 5,26,111 | 47.39% |
| FY29 | 3,60,072 | 52,979 | 4,13,052 | 1,66,038 | 83.4% |
| FY30 | 1,66,038 | 6,067 | 1,72,105 | 0 | 100% |
Download your full month-by-month repayment schedule
EMI (Equated Monthly Instalment) is the fixed sum you pay to the lender each month until your business loan is cleared. It comprises the principal borrowed and the interest charged. Managing this EMI efficiently is crucial for maintaining your business's working capital and operational cash flow.
In the initial months of your repayment tenure, a larger portion of your EMI goes towards paying the interest. As you continue to pay, the interest component decreases, and the principal component increases.
For most term loans, this follows the reducing-balance method, meaning you only pay interest on the outstanding loan amount, not the original borrowed amount.
Lenders analyze your business vintage, annual turnover (revenue), and profit margins. Generally, to secure an unsecured loan of ₹20 lakhs, lenders expect a minimum annual business turnover of ₹40 lakhs to ₹1 Crore, alongside positive profitability for the last 2 years.
Not necessarily. While a lower EMI preserves cash flow for daily operations, it means you have chosen a longer tenure. A longer tenure results in significantly higher total interest paid to the bank, increasing the overall cost of capital for your business.
The table below highlights estimated EMIs for typical unsecured business loans at an average interest rate of 15% for a 3-year tenure.
| Loan Amount | Rate | Tenure | Monthly EMI | Total Interest | Total Repayment |
|---|---|---|---|---|---|
| ₹5 Lakh Loan EMI | 15% p.a. | 3 yr | ₹ 17,333 | ₹ 1,23,976 | ₹ 6,23,976 |
| ₹10 Lakh Loan EMI | 15% p.a. | 3 yr | ₹ 34,665 | ₹ 2,47,952 | ₹ 12,47,952 |
| ₹20 Lakh Loan EMI | 15% p.a. | 3 yr | ₹ 69,331 | ₹ 4,95,904 | ₹ 24,95,904 |
| ₹50 Lakh Loan EMI | 15% p.a. | 3 yr | ₹ 1,73,327 | ₹ 12,39,759 | ₹ 62,39,759 |
Last updated: 2026-08-14
Find answers to common questions about calculating business EMIs, interest rates, and loan foreclosure.
You need the principal loan amount you are borrowing, the applicable annual interest rate, and the repayment tenure in months or years.
For term loans with fixed interest rates, your EMI remains constant. However, for overdraft facilities or floating-rate loans, the EMI or interest payout will fluctuate based on utilization and market rates.
Yes, you can use this calculator to estimate EMIs for any term loan, including Machinery Loans and fixed Working Capital Term Loans. However, it does not apply to Overdraft (OD) or Cash Credit (CC) accounts where interest is charged only on the utilized amount.
Business loan interest rates typically range from 14% to 24% per annum for unsecured loans. Secured business loans (against property) can have lower rates starting from 9% to 11%.
A higher interest rate increases your monthly EMI obligations, reducing the free cash flow available for daily operations. It is crucial to negotiate lower rates or shorter tenures to protect business liquidity.
Yes, standard term loans and unsecured business loans from recognized NBFCs and banks are calculated on a reducing balance method, where interest is charged only on the outstanding principal.
Yes, you can foreclose a business loan. It is highly beneficial if your business suddenly generates surplus cash, as it reduces your debt burden and saves massive interest costs.
Yes, unlike home loans for individuals, banks and NBFCs generally levy a foreclosure or pre-payment penalty on business loans. This usually ranges from 2% to 5% of the outstanding principal amount.
We work exclusively with RBI-regulated banks & NBFCs to secure the best rates and terms for you.
