A Business Loan EMI Calculator helps you calculate the monthly installment (EMI) for your business loan. Business loans are crucial for entrepreneurs and companies to fund their operations, expansion, equipment purchase, or working capital requirements. Our calculator provides accurate EMI calculations for various business loan schemes available in India.
How Business Loan EMI is Calculated
Business loan EMI is calculated using the standard EMI formula:
EMI = [P × R × (1+R)^N] / [(1+R)^N-1]
Where: P = Principal, R = Monthly Interest Rate, N = Tenure in Months
Types of Business Loans
- Term Loan: Fixed amount for a specific period with regular EMI payments
- Working Capital Loan: Short-term financing for day-to-day operations
- Equipment Financing: Loans specifically for purchasing business equipment
- Invoice Discounting: Credit against pending invoices from customers
- Supply Chain Financing: Financing for supplier payments and inventory
- Cash Credit/Overdraft: Flexible credit limit for business expenses
Business Loan Interest Rates by Banks
| Bank/NBFC |
Interest Rate |
Max Amount |
Processing Fee |
| SBI | 9.95% - 15.00% | ₹200 Cr | 0.35% + GST |
| HDFC Bank | 10.50% - 21.00% | ₹75 Cr | Up to 2% |
| ICICI Bank | 10.75% - 19.00% | ₹50 Cr | Up to 3% |
| Axis Bank | 11.25% - 24.00% | ₹15 Cr | Up to 2% |
| Kotak Mahindra | 12.00% - 24.00% | ₹10 Cr | Up to 3% |
| Bajaj Finserv | 13.00% - 30.00% | ₹80 Lakh | Up to 4% |
Business Loan Eligibility Criteria
- Business Vintage: Minimum 2-3 years of business operations
- Annual Turnover: Minimum ₹40 lakhs to ₹1 crore depending on lender
- Credit Score: CIBIL score of 650+ for business and promoters
- Profit Margin: Consistent profitability for last 2-3 years
- Debt-to-Income Ratio: Should not exceed 40-50%
- Business Registration: Valid business license and registrations
Documents Required for Business Loan
Business Documents:
- Certificate of Incorporation
- Partnership Deed / MOA & AOA
- Business License & Registrations
- GST Registration Certificate
- ITR for last 3 years
- Financial Statements (P&L, Balance Sheet)
- Bank Statements (12-24 months)
Personal Documents:
- KYC of Directors/Partners
- PAN Card & Aadhaar Card
- Address Proof
- Personal ITR for 2-3 years
- Personal Bank Statements
- Property Documents (if any collateral)
- Board Resolution (for companies)
Factors Affecting Business Loan Interest Rates
- Credit Score: Higher credit score leads to lower interest rates
- Business Vintage: Older businesses get better rates
- Financial Performance: Profitable businesses qualify for lower rates
- Loan Amount: Higher loan amounts may get marginal rate benefits
- Collateral: Secured loans have lower interest rates than unsecured
- Industry Type: Some industries are considered higher risk
- Relationship with Bank: Existing customers may get preferential rates
Tips for Business Loan EMI Planning
- Compare offers from multiple banks and NBFCs
- Maintain a good credit score for better rates
- Choose the right loan tenure to balance EMI and total interest
- Consider seasonal business cycles while planning EMI payments
- Keep some buffer for working capital after EMI payments
- Explore government schemes for subsidized business loans
- Consider prepayment options to reduce total interest cost
- Maintain proper financial records for loan applications
Government Business Loan Schemes
- MUDRA Loan: Up to ₹10 lakhs for micro enterprises
- PMEGP: Manufacturing units up to ₹25 lakhs, service units up to ₹10 lakhs
- Stand-Up India: ₹10 lakh to ₹1 crore for SC/ST/Women entrepreneurs
- SIDBI Loans: Various schemes for MSMEs
- CGTMSE Guarantee: Collateral-free loans up to ₹2 crores
Frequently Asked Questions
What is the maximum amount for business loans?
Business loan amounts can range from ₹1 lakh to ₹200 crores depending on the lender, business profile, and loan type.
Can I get a business loan without collateral?
Yes, many banks and NBFCs offer unsecured business loans up to ₹1-2 crores based on business performance and credit profile.
How long does business loan approval take?
Approval time varies from 7-30 days depending on the lender, loan amount, and documentation completeness.
Can I prepay my business loan?
Yes, most lenders allow prepayment with minimal or no penalty charges, especially for floating rate loans.