Business Loan · EMI Calculator
Business Loan EMI Calculator
Use this business loan calculator to instantly estimate your monthly instalment, total interest, and total payable amount for any loan amount, rate, and tenure.
A business loan EMI (Equated Monthly Instalment) is the fixed amount you pay each month to repay your loan’s principal and interest under the reducing balance method. For example, a ₹10,00,000 business loan at 18% p.a. over 24 months has an EMI of ₹49,924, with ₹1,98,178 total interest and ₹11,98,178 total repayment. Indifi’s business loans range from ₹1 Lakh to ₹50 Lakhs.
Indicative estimate using the reducing balance method. Final EMI is confirmed in your sanction letter.
How to Use the EMI Calculator
Three inputs, an instant result. No sign-up, no credit-score impact.
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Enter loan amount
Input the principal amount you wish to borrow, up to ₹50 lakh. Use the slider to adjust.
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Set interest rate
Use 18% p.a. (1.5%/month) as a starting estimate, or adjust to your lender's quoted rate.
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Choose tenure
Set the number of months to repay. Shorter tenure = lower total interest; longer tenure = lower monthly EMI.
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Read your results
See your monthly EMI, total interest payable, total repayment cost, and the principal vs interest split.
EMI Calculation Formula
The calculator uses the standard reducing-balance EMI formula that banks and NBFCs apply.
EMI = P × r × (1+r)n ÷ [(1+r)n – 1]
- P = Principal loan amount
- r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = Loan tenure in months
Worked example
- Loan of ₹10,00,000 at 18% p.a. for 24 months
- Monthly rate r = 18 ÷ 12 ÷ 100 = 0.015
- Total payable: ₹11,98,178
- Total interest: ₹1,98,178
EMI ≈ ₹49,924 / month
Business Loan EMI Table
Pre-calculated EMIs for common loan amounts and tenures. Switch between the interest rates below.
| Loan Amount | 12 months | 24 months | 36 months | 48 months |
|---|---|---|---|---|
| ₹1 Lakh | ₹9,168 | ₹4,992 | ₹3,615 | ₹2,937 |
| ₹3 Lakhs | ₹27,504 | ₹14,977 | ₹10,846 | ₹8,812 |
| ₹5 Lakhs | ₹45,840 | ₹24,962 | ₹18,076 | ₹14,687 |
| ₹10 Lakhs | ₹91,680 | ₹49,924 | ₹36,152 | ₹29,375 |
| ₹25 Lakhs | ₹2,29,200 | ₹1,24,810 | ₹90,381 | ₹73,437 |
| ₹50 Lakhs | ₹4,58,400 | ₹2,49,621 | ₹1,80,762 | ₹1,46,875 |
* EMIs calculated at 18% p.a. (reducing balance). Actual EMI depends on your lender's rate and loan profile.
What Affects the Result?
Understand each input so you can optimise your outcome before applying.
Loan Amount
A higher principal means a proportionally higher EMI. Borrow only what your business needs; avoid over-borrowing to keep repayments manageable and DSCR healthy.
Interest Rate
A 1% rate difference on ₹10 lakhs changes your monthly EMI by ₹500–800. Even small improvements in the rate make a significant difference over a 24–36-month tenure.
Tenure
Longer tenure lowers the monthly EMI but raises total interest significantly. A 12-month extension on ₹10L at 18% adds over ₹1 lakh in extra interest.
CIBIL Score
A CIBIL score of 700 or above typically unlocks 1–2% lower interest rates, directly reducing your monthly EMI and total interest cost over the tenure.
Business Vintage
Businesses with 2 or more years of operation qualify for better rates and higher loan amounts from most lenders, which can meaningfully lower your EMI burden.
GST Filing
Consistent, regular GST return filing is a key signal of financial discipline for lenders. It improves your creditworthiness and can influence the rate you are offered.
Eligibility & Documents for a Business Loan
Minimal paperwork. Indifi underwrites on bank and GST data, so you start with a few core documents.
Eligibility Criteria
- Minimum operational history of 1 year
- Promoter age 22 and above
Documents Required
| KYC Documents | Of the entity & promoters |
|---|---|
| Bank Statement | Last 6 months |
| ITR | Required for annual turnover above ₹5 Crores |
Frequently Asked Questions About Business Loan EMI
Everything on how EMI is calculated, tenure, pre-closure and more.
EMI stands for Equated Monthly Instalment. It is a fixed amount you pay every month to repay your loan. Each instalment covers a portion of the principal and the interest due. Under the reducing balance method, the interest component decreases each month as the outstanding principal reduces. Total loan and tenure determine the exact amount. A well-planned EMI helps businesses manage cash flow without disrupting daily operations. Using an EMI calculator before borrowing can help you choose a repayment amount that fits your budget.
EMI is calculated using the formula: EMI = P × r × (1+r)n ÷ [(1+r)n – 1]. In plain terms, it uses your loan amount, monthly interest rate, and tenure in months. For a ₹10L loan at 18% p.a. for 24 months, the EMI works out to ₹49,924/month. Use the calculator above for your specific inputs and get a live result instantly. Even small changes in interest rate or tenure can significantly affect your EMI and total repayment cost.
Three inputs directly determine your EMI: loan amount, interest rate, and tenure. A higher principal, a higher rate, or a shorter tenure each raises the monthly amount. Your CIBIL score, business vintage, and GST filing history are indirect factors; they influence the interest rate your lender offers, which then affects your final EMI. Businesses with stronger financial profiles may qualify for more favourable lending terms.
A longer tenure reduces your monthly EMI, but it increases the total interest you pay. On a ₹10 lakh loan at 18% p.a., choosing a 36-month tenure instead of a 24-month tenure lowers your monthly EMI by ₹13,772 but increases your total interest cost by ₹1,03,294 over the loan period. Choose the shortest tenure your monthly cash flow can comfortably support. It is important to evaluate the total repayment amount rather than focusing only on monthly affordability.
Yes. Pre-closing a loan eliminates future interest charges, which can reduce your total repayment cost. Indifi charges a foreclosure fee of up to 4% of the outstanding amount (OA), so factor this cost into your decision before pre-closing. Pre-closure may be beneficial if your business has surplus cash or improved cash flows. Always compare the interest savings with the foreclosure fee to determine whether pre-closing offers a net financial benefit.
The calculator gives an accurate estimate using the standard reducing balance formula. The actual EMI on your sanction letter may differ based on your lender's final interest rate, any processing fees deducted at disbursement, and your specific loan structure. Treat the result as a planning estimate. Your sanction letter confirms the exact EMI, subject to eligibility and approval.
Have other questions? Check our full FAQ section.
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