A business, whether it is budding or established, requires a constant influx of funds. While there are many ways to finance your organisational expenses, business finance from a reputed lender can quickly fulfil your growing enterprise’s varying financial needs. Besides, since these loans are collateral-free, there is no requirement of putting down a personal or professional asset as a deposit.
However, before applying for business loan, you must check your loan eligibilityand estimate the loan amount, interest rate, and monthly instalments. Using an online EMI calculator is an accurate way of smartly managing your repayments. Read further to understand how an EMI calculator can help you plan your expenses.
What is a Business Finance or Loan EMI Calculator?
A business loan EMI calculator is an online tool that helps you calculate the amount you will have to repay during the loan tenure. Nowadays, EMI calculators are readily available online, and you only need to input your loan amount, tenure, and interest rate.
If you check your EMI amount beforehand, the calculator will calculate your monthly instalments payable and how much business loan interest rateyou will pay over the loan tenure. Knowing your monthly repayment amount before applying is a smart move that has multiple benefits on your monthly budget, future finances, and more.
Additional Read: Beginner’s Guide on How to Calculate EMI for Business Loan
Advantages of Using an EMI Calculator
- Save Time and Effort
An online EMI calculator is the easiest way to calculate your monthly instalments, saving you a lot of time and effort. Enter the variables and get the results without having to do any mathematical calculations yourself.
Additional Read: Best Ways to Repay Your Business Loan Faster
- Get Accurate Results
Computing the EMI amount by hand can easily lead to miscalculation, and errors have no place while you plan your business finances. Meanwhile, an EMI calculator is seldom incorrect and provides you with accurate results on the go.
- Compare Different Lenders
Another crucial advantage of calculating your monthly instalments beforehand is comparing the EMI amounts by different lenders. This will help you opt for the right lender and make an informed decision before borrowing a business loan.
- Better Financial Planning
The most significant benefit of using an EMI calculator is that you can plan your finances better for the future. You can have a clear estimate of your monthly budgets and how much you need to spend on the loan instalments each month.
- Assess Your Affordability
With an EMI calculator, you can ensure how much business finance amount is within your repayment capacity. You can then borrow an ideal loan amount and opt for loan tenure suitable for your business cash flow.
Over to You
Calculating your EMI in advance is an excellent place to begin the process of securing business finance. Moreover, if you are looking for a trusted finance partner, your quest for funds to grow your business ends at Tata Capital. Fulfil our easy business loan eligibility criteria and apply for a loan in just a click. Visit our website today!