Model repayments before you commit working capital to a loan.
Whether you're financing equipment, working capital, or expansion, a business loan's EMI needs to fit comfortably within your monthly cash flow — not just your projected revenue. This calculator uses the same reducing-balance formula lenders use for term loans, letting you test how different loan amounts, rates, and tenures affect your monthly obligation before you apply.
Business loan rates and tenures vary far more than consumer loans because pricing depends heavily on your business vintage, turnover, collateral offered, and whether the loan is secured or unsecured. Use the sliders to model a few realistic scenarios — a lender will rarely give you a single quote to compare against, so having your own baseline matters.
Secured business loans (backed by property, machinery, or inventory as collateral) generally carry lower interest rates and longer tenures than unsecured loans, which rely purely on your business's cash flow and credit history. Government-backed schemes for MSMEs (such as those under CGTMSE) can also reduce the collateral requirement and sometimes the effective rate.
Because business loan interest is usually tax-deductible as a business expense, the effective after-tax cost of borrowing is often lower than the headline rate suggests — but always confirm the specific treatment with your accountant, since this calculator only models the loan mechanics, not tax outcomes.
For example, a ₹10,00,000 business loan at 13.5% annual interest over 7 years comes to an EMI of about ₹18,465 a month, with total interest of roughly ₹5,51,051 — a total repayment of about ₹15,51,051.
$18,465
$551,051
$1,551,051
Principal · 64%
$1,000,000
Total Interest · 36%
$551,051
| Year | Principal Paid | Interest Paid | Balance Remaining |
|---|---|---|---|
| 1 | $92,142 | $129,437 | $907,858 |
| 2 | $105,380 | $116,198 | $802,478 |
| 3 | $120,521 | $101,058 | $681,957 |
| 4 | $137,836 | $83,742 | $544,121 |
| 5 | $157,640 | $63,939 | $386,481 |
| 6 | $180,289 | $41,290 | $206,192 |
| 7 | $206,192 | $15,387 | $0 |
What documents do lenders need for a business loan EMI quote?
Most lenders want at least 2-3 years of financial statements, GST returns, bank statements, and proof of business vintage before quoting a rate. This calculator lets you estimate your EMI before you gather that paperwork so you know roughly what to expect.
What is a typical business loan interest rate in India?
Rates commonly range from 10% to 20% per annum for term loans, depending on whether the loan is secured, the lender type (bank vs. NBFC), your business's credit profile, and turnover.
Can I prepay a business loan early to save interest?
Yes, and it's usually worthwhile since interest accrues only on the outstanding balance. Some lenders charge a prepayment or foreclosure fee on business loans, so factor that in — our prepayment calculator shows the net interest saved after accounting for extra payments.
Does a longer tenure help business loan cash flow?
Yes, a longer tenure lowers the EMI and eases monthly cash flow pressure, which can matter more than the extra interest cost for a growing business — but it increases total interest paid, so model both scenarios with the sliders above before deciding.
How is business loan eligibility decided?
Lenders typically look at business turnover, profitability, existing debt obligations, credit score, and collateral (if any) rather than just personal income. Larger, more established businesses with clean repayment history generally qualify for higher amounts and lower rates.