Business Loan Calculator
Calculate EMI for business loans, MSME loans, term loans, and working capital loans.
Loan Details
Loan Summary
Year-wise Breakdown
| Year | Opening | Principal | Interest | Closing |
|---|---|---|---|---|
| Year 1 | ₹25.00 L | ₹3.88 L | ₹2.79 L | ₹21.12 L |
| Year 2 | ₹21.12 L | ₹4.37 L | ₹2.30 L | ₹16.74 L |
| Year 3 | ₹16.74 L | ₹4.93 L | ₹1.74 L | ₹11.81 L |
| Year 4 | ₹11.81 L | ₹5.55 L | ₹1.12 L | ₹6.26 L |
| Year 5 | ₹6.26 L | ₹6.26 L | ₹41,427 | ₹10 |
Frequently Asked Questions
What is the interest rate on business loans?
Business loan interest rates range from 10% to 24% depending on the lender, loan type, and your profile. PSU banks (SBI, BoB) offer 10-14%, private banks 14-18%, and NBFCs 15-24%. Secured loans with collateral get lower rates. CIBIL score above 750 helps get better rates.
What is the maximum business loan I can get?
Maximum loan depends on your business turnover and profitability. Generally: Up to 3-4x of annual turnover for working capital, up to 5x for term loans. PSU banks offer up to ₹5 Crore for MSMEs. NBFCs and private lenders may offer higher amounts with collateral.
What is MUDRA loan and who is eligible?
MUDRA (Micro Units Development & Refinance Agency) loan is a government scheme offering collateral-free loans up to ₹10 Lakh for micro/small businesses. Three categories: Shishu (up to ₹50K), Kishore (₹50K-5L), Tarun (₹5L-10L). Any non-corporate small business can apply.
What is the difference between term loan and working capital loan?
Term Loan: Fixed amount disbursed once, fixed EMI repayment, used for expansion/equipment, tenure 1-7 years. Working Capital Loan: Revolving credit like overdraft/CC, interest only on utilized amount, for daily operations, usually renewed annually.
Can I get business loan without collateral?
Yes, unsecured business loans are available: MUDRA loans up to ₹10 Lakh, CGTMSE-covered loans up to ₹2 Crore (guarantee scheme), fintech/NBFC loans based on cash flow. However, interest rates are higher (16-24%) and tenure shorter for unsecured loans.
What documents are needed for business loan?
Essential documents: Business registration (GST, Udyam, Partnership deed), KYC of proprietor/partners, Last 2-3 years ITR and audit reports, Bank statements (12 months), GST returns, Property documents (for collateral). Additional: Project report for new ventures.
What is CGTMSE scheme for business loans?
CGTMSE (Credit Guarantee Fund Trust for MSEs) is a government scheme that provides guarantee to banks for collateral-free loans to MSMEs. Coverage: Up to ₹2 Crore. Bank lends without collateral as CGTMSE guarantees 75-85% of the loan. Small fee (0.5-1.5%) added to loan.
How is business loan eligibility calculated?
Key factors: Business vintage (minimum 2-3 years), Annual turnover (minimum ₹40 Lakh-₹1 Crore), Profitability (PAT positive), CIBIL score (700+), Banking transactions (healthy cash flow), Existing debt obligations. Loan amount typically 20-40% of annual turnover.
What is processing fee for business loans?
Processing fee ranges from 1-3% of loan amount. PSU banks charge 0.5-1.5%, private banks 1.5-2.5%, NBFCs 2-3%. Negotiate for lower fees, especially for large loans. Some lenders waive processing fee during promotional periods.
Can I prepay business loan early?
Yes, but check prepayment charges. Floating rate loans: Usually no prepayment penalty (RBI rule). Fixed rate loans: May have 2-5% penalty on prepaid amount. Some lenders allow partial prepayment without charges. Prepaying saves significant interest over loan tenure.
What is LAP (Loan Against Property) for business?
LAP is a secured loan where you pledge property (residential/commercial) as collateral. Benefits: Higher loan amount (50-70% of property value), lower interest rates (9-14%), longer tenure (up to 15 years). Risk: Property can be seized if you default on payments.
How to choose between bank and NBFC for business loan?
Bank pros: Lower interest rates (10-15%), higher loan amounts, longer tenure. Bank cons: Slower processing (2-4 weeks), strict eligibility. NBFC pros: Faster approval (2-7 days), flexible eligibility. NBFC cons: Higher rates (15-24%), shorter tenure, lower amounts.