Numbers are what drive a business. Naturally, business loans are all about number calculation. Every businessman wants to know how much business loan he can afford. A business loan calculator tells you what is the indicative EMI you will pay for a loan at a given interest rate and loan tenure. Read on to know how to use a business loan EMI calculator.
Before starting, you will need to come to open Tata capital’s business loan EMI calculator. You can go to it form the link – https://www.tatacapital.com/business-loans/business-loan-emi-calculator.htm
It is a simple calculator that help understand your financial needs and tells you how much you will pay for taking a loan for business.
Loan Amount – This is a number. In the calculator, the loan amount is total sum of money you plan to borrow. The calculator’s default option is Rs 10000. Click on the number, delete the default number. Then, key in any number you want above Rs 10000. The maximum number you can put in the loan amount column is Rs 20000000. Alternatively, you can use the slider given and move it either to the left to reduce the number. Move it to the right to increase the number.
Interest rate – This is also a number. This is the rate of interest Tata Capital has communicated to you. You can put in any number. The default option is 5%. Do note that the percentage sign is not required to be put in. The biggest number you can put in the interest column is 25%. If you cannot use the keyboard, utilize the slider given. Either move it either on the left to reduce the number, or move it to the right to increase the number.
Loan tenure – This is the last column in the Tata Capital business loan EMI calculator. This number is the final input, without which EMI cannot be shown. By default, you see 12 months in this column. You can use the slider to reduce or increase the loan tenure. The loan tenure is exhibited in ‘months’, and not in ‘years’.
Once you have put the right numbers in the three columns, press ‘calculate’ button. In case, some wrong number has been put in, press the ‘reset’ button.
As soon as you press the ‘calculate’ button, the calculator will work its magic to show the EMI (in rupees) you will need to pay. For example, a Rs 10 lakh loan at 15% interest for 60 months tenure will mean an EMI of Rs 24027.83. The calculator also shows two other number besides the EMI. One, the total interest to be paid and the total amount payable (principal plus interest).
If the EMI is higher or lower than your budget, use higher or lower figures to arrive at the perfect EMI you can afford to pay for the loan. As a thumb-rule, a lower tenure will result in a higher EMI compared to one where the tenure which is longer. The EMI may be lower when the tenure is longer, but the interest payable will be higher.
Tata Capital’s hassle-free business loans are exactly what your enterprise needs. Use the calculator to get complete transparent details of your EMI and plan your finances to sustain loan repayments throughout the tenure.