Entrepreneurship has become the prime focus in the 21st century and is rising at a higher pace. With a creative business idea and the right strategy, one can easily make it through and establish a successful business. However, what entrepreneurs find most difficult in the journey is the financing they need to grow their venture. No doubt, there are ample financing options available, but business loans are the best options available in the market. You can check the business loan interest rate and opt for them right away.
Business loans can help you grow your business venture and cover your financial requirements. You can use the loan amount to buy raw materials, invest in equipment, and even hire employees for your business. However, after taking a loan, there comes the real test, the EMI. You have to pay your instalments periodically. To manage it effectively, you might need a business loan EMI calculator. It will help you calculate your EMI using the business loan interest rate, loan amount and tenure and will also keep you updated about your loan.
But before discussing more business loan EMI calculators, let’s take a quick look at what are business loans and how they can be significant for your business.
What is a business loan?
A business loan is a financing facility extended by lending institutions to finance your business and cover your needs. You can use the loan to meet all your business-related requirements like purchasing raw materials, equipment, funding inventory, etc. As you have borrowed the amount from the lender, the lender charges you interest at a pre-determined business loan interest rate on the principal amount.
You have to repay your loan during the loan tenure in the form of an EMI. Business loans come with plenty of benefits that make them popular among borrowers. Business loans come with a nominal business loan interest rate so that you won’t strain your financial muscle while repaying the loan. With that, you also have the option to go for a high loan amount. The loan amount can be as high as INR 50 lakhs or even INR 2 crores in some cases.
Now that you have known what a business loan is, you must understand how to calculate the EMI using a business loan EMI calculator.
What is a business loan EMI calculator?
A business loan EMI calculator is an online tool that helps you to calculate your monthly instalments. You have to provide the basic details regarding your loan like your loan amount, business loan interest rate, and your loan tenure. The business loan EMI calculator can help you calculate the EMI amount within a second. You can change the numbers to determine the EMI amount that suits you.
In modern times where you have to be regularly updated with business details, you should use advanced tools for easy calculation. Gone are the days when businesses used a complex mathematical formula to calculate the EMI amount. So to avoid complexity, a business loan EMI calculator is already programmed with the desired formula and gives you the accurate result.
Benefits of using a business loan EMI calculator
There are several benefits of using a business loan EMI calculator for borrowers. Some of these benefits include:
- Easy to use:
Online business loan EMI calculators are easy to use and are specially designed for the user’s convenience. All you have to do is enter your loan details like the loan amount, the business loan interest rate provided to you by your bank, and the tenure of repayment. Being a user-friendly device, it saves you from all types of complexity while calculating.
- Saves time:
Compared to a mathematical formula, you can save a lot of time by using a business loan EMI calculator. Even a regular calculator can’t beat the speed of a business loan EMI calculator.
- Planning your finance:
Planning your business finance is the most important point to consider while availing of a business loan. For that, you need to perform a set of calculations and keep yourself updated on the entire debt situation. You can try different permutations and combinations for the loan amount, rate and tenure before availing of the loan. This will help you know your EMI for different options.
The results provided to you by the business loan EMI calculator are cent per cent accurate. The results obtained are precise and error-free as it is produced by artificial intelligence.
- Comparing different options:
Besides helping you in calculating the business loan EMI amount for the loan you have applied for, the calculator also helps you to compare different loan options available to you.
How to use a business loan EMI calculator?
Using a business loan EMI calculator is a cakewalk and even if you don’t get it the first time, here are the steps you should follow to use the same.
- In the first bar, enter the loan amount which you have taken or are willing to take from the lender.
- In the second bar of the business loan EMI calculator, you have to enter the interest rate charged by your lender.
- In the third bar, enter the period of repayment of the loan you have taken. This can either be entered in months or years.
- Now, you have to click on “calculate” and within a second, the business loan EMI amount will flash on your screen. Further, it will also show you the total interest that you will pay over the tenure of the loan.
Some business loan EMI calculators have a slider option, where you can slide the cursor and fix the EMI amount as per the requirement.
The Bottom Line:
Though a business loan can give you the financial leverage you need, you also need to keep an eye on your repayment schedule. For better management of the EMIs, you should prefer to use a business loan EMI calculator. This online handy device helps you calculate your instalment amount and gives you the result within a second.
Besides using it for calculating your EMIs for the loan you have already applied for, you can also use it to compare different loan options available to you and choose the best from them. If you want to know more about business loan EMI calculators or use the same, you can prefer to visit Piramal Finance. Further, if you want to grasp more such insightful information, visit Insights on the Piramal Finance website now!