Business Loan Calculator to Simplify Repayment
When thinking of applying for a business loan, the biggest concern is EMIs, which vary largely from one vendor to another when you compare them. To simplify the process of calculating EMIs for its customers, Tata Capital offers business loan calculator that¿s fast and convenient to use as compared to manual calculations, which can be complicated and not always accurate. Here is a look at what business loan EMI calculators are and how they work to provide you accurate data.
What Is A Business Loan Calculator?
Business loan calculator is a software that assists borrowers to calculate their monthly installments (EMI) for the repayment of their business loan.
How Does It Work?
A business loan EMI calculator works based on three factors:
- Loan Amount - Loan amount is one of the most important factors that determine the EMIs. Also called principal amount, it is the total sum of money borrowed by you.
- Tenure - Loan tenure is the number of years for which the loan has been taken and it's a crucial factor you should consider while taking business loans. The longer tenure you choose, the higher will be interest paid and lower will be the EMIs.
- Rate of interest - Every financial institution offers different business loan interest rates based on the profile of the borrower. Prior to applying for a loan, you should consider different rates from various lenders.
The commercial loan calculator uses a mathematical formula E = P x r x (1+r)^n/((1+r)^n ¿ 1), where
- E is EMI,
- P is the principal loan amount,
- r is the rate of interest calculated on a monthly basis
- and n is the tenure of the loan
Using a business loan EMI calculator
The business loan calculator is convenient to use. You just have to enter the details including the loan amount, loan tenure and rate of interest to figure out the EMIs you are required to pay. And if the estimated EMI is a little more than you can afford, you can recalculate to suit it your budget. All you have to do is enter different details such as a longer loan tenure or less principal amount. You can do multiple calculations with precision and keep recalculating to get an EMI that you are satisfied with.
Whether you have a large business or small, business loan calculator can help you determine the repayment option of your loan.
Have more questions about business loans? Read our FAQ here