What Are the Advantages of A Business Loan EMI Calculator?

By Megha Jain, Content Writer  |  Thursday, 23 May 2024, 03:06:23 PM IST

What Are the Advantages of A Business Loan EMI Calculator?

Are you a business entrepreneur looking for business loans? Do you know that taking an estimation prior to making a loan application is a mandate? The first and foremost aspect involves getting hold of an EMI calculator before an entrepreneur makes a loan application. But what do you actually do with an EMI loan calculator? Precisely, as told by experts, you can check the amounts of loan disbursements that one needs to make within a specific tenure. A major advantage of EMI calculators remains that they can give entrepreneurs a clear idea so as to help them meet their financial obligations. As a matter of fact, industry experts explain that an EMI calculator can really help entrepre- neurs plan a smooth life while completing the necessary formalities for doing business.

What Is A Business Loan EMI Calculator?

Do you know what exactly is a business loan calculator and how does it help entrepreneurs? As explained by professionals from the banking industry, these are nothing but online tools that could help young entrepreneurs calculate their financial liabilities. Therefore, if you are an entrepreneur and would like to apply for a collateral-free business loan, make sure that you make a close estimate of your expenditures on the loan front.

In order to use a simple EMI calculator, you should take a stock of the following:

  • The total amount of loan that you need to take to fulfill business liabilities
  • The contemporary interest rate applicable within the given context

Using a business loan calculator, an entrepreneur needs to follow the given formula:

E = P * r * (1+r) ^n / ((1+r) ^n-1)

  • E remains to be the easy monthly installments (EMIs)
  • P remains to be the principal loan amount.
  • R relates to the rate of interest calculated on a monthly basis.
  • N is the significant tenure for taking a business loan

How To Calculate The Loan Cost?

It is interesting to note that the EMI calculator has a table that depicts clearly the loan schedule to be followed by the respective entrepreneur. It can contain the following details as given below:

  • The rate of interest currently applicable
  • Part of the EMI that goes into the principal amount
  • Breakdown of interest and principal for giving a better understanding to the entrepreneur about his monthly financial engagements

The information given above can help the entrepreneur gain a better understanding of the entire process of business loan repayment.

Advantages of using a Business Loan EMI Calculator

There are several benefits of a so called busines loan EMI calculator. Let’s take a quick look at some of the major aspects that remains to be seriously advantageous!

  • Ease-of-Use

An EMI calculator can provide you with peace of mind with its’ ease of use. Some of the best aspects of such online tools remain

  • Ease of calculating interest rate
  • Ease of understanding the amount to be repaid
  • The contemporary interest rate is included while calculating
  • The amount of loan to be paid within a specific tenure can be easily calculated 

Accurate results can be expected as there are few chances of errors, while financial consultants agree that there is a tabular format available, which is quite comprehensible.

The best part of these online tools remains unlimited use based on business requirements. At the same time, you can try out separate principal amounts in order to follow the outcomes as and when required. In addition to the above, financial consultants agree that such online tools could be time-saving ones, while business loan calculators provide a steady guideline for entrepreneurs in case they would like to apply for business loans. Information retrieved from EMI calculators can help entrepreneurs plan monthly cash inflow against the business outflow.

Conclusion

In the contemporary context, it is to be noted that the lending landscape has been transformed largely when we speak about some of the most competitive global markets. India has been no exception, and with the emergence of a digital ecosystem, applying for business loans remains to be a kid’s game. Besides banks and other financial institutions, non-banking finance corporations (NBFCs) have come up in the given segment, and India has witnessed a sharp increase in business loan applications in the recent past. Do you know that the NBFCs had disbursed almost 12 times more principal amounts to be used as business loans by the entrepreneurs? In fact, during the contemporary days, NBFCs had largely emerged as financial institutions ensuring so called ‘manageable repayment terms’ for the entrepreneurs. Encouraging flexible procedures for taking a business loan, NBFCs offer special schemes for Indian entrepreneurs! So, if you are looking for flexible payment rates or optimal financing options, make no delay in visiting a nearby financial service operator, preferably a reputed NBFC.

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