How Does an EMI Calculator Help When Applying for a Small Business Loan?
To run a business successfully, you need a continuous influx of money. Many Medium, Small and Micro Enterprises (MSMEs) are looking to take small business loans to be able to run their business without any disruptions, however, taking a loan and making its repayment has always been a challenge in India considering the stringent business loan interest rates and asset submission requirement.
While there are several ways to finance your organisation, taking business finance from a reputed and renowned lender can aid businesses to fulfill their growing business financial needs. Having said that, while it has become easy for organisations to take loans collateral-free, many business owners are unable to repay the EMI (Equated Monthly Installments) due to a lack of knowledge of future expenses and repayment plans.
Here’s what you need to know about the Business Loan EMI Calculator!
Business Loan EMI Calculator
With a Business Loan EMI Calculator, you can calculate your monthly loan repayments during the entire loan tenure. Most business loan calculators are readily available online. They help you estimate your repayment value and decide whether you are fit to take a hefty loan at the moment.
Hence, if you are planning to take a financial loan for your business, please ensure to calculate your future expense plan and how you are going to use the finance. Once that is calculated, deciding the exact amount of funds required for the loan and whether you can repay it or not will be easy to decide.
How Does a Business Loan Calculator Work?
To know how the EMI calculator works, you need to know the exact principal amount you are looking to avail. Once that is done, depending on your future financial plan, you need to mention the tenure and the rate of interest on which you will get the loan.
Coming down to the EMI calculator, you need to fill in the following information in the calculator for it to give you an exact EMI repayment value during the tenure.
* Principle amount of the loan
* Business loan interest rate
How does it calculate the EMI?
The calculator uses the formula — E = P x R x (1+R) ^ N/ [(1+R) ^N -1]
In this formula,
E = EMI
P = Principle amount
R = Rate of Interest
N = Tenure
What are the Pros of Using a Business Loan EMI Calculator?
EMI calculator is just a way to calculate your monthly repayment value while also ensuring you have the knowledge of your future financial plan for your business and whether you will be able to make the repayments on time.
Let’s have a look at the pros of using a business loan calculator, prior to taking a loan.
1. Accurate Result
Calculating the monthly EMI repayment amount manually can easily lead to miscalculations. Hence, the digital EMI calculator proves to be an effective way to calculate EMI. It is simple to use, and cannot give you an incorrect answer ensuring your calculations are accurate and do not go wrong in the long run.
2. Save Time & Effort
When you are applying for a loan you always want to know what you are getting into. And you cannot do that until and unless you have well-calculated your decision. EMI calculator, being available digitally, offers you an effortless procedure to calculate your total monthly repayment amount seamlessly while saving time and effort.
3. Analyse your Affordability
When you calculate your total EMI, you get an understanding of whether you can repay the entire loan amount on a monthly basis or not.
4. Compare Multiple Lenders
It is always better to know that you have taken your decision post contemplating the pros and cons and not just in a haste. Hence, when you visit the site of your lenders, understand their document requirements, and the rate at which they are offering loans while also keeping in mind the eligibility criteria. Once all the basic information is collected, you can calculate your monthly EMI for different lenders and see which one suits you and your needs the best.
5. A Move Towards Better Financial Planning
Having a monthly EMI calculator by your side aids you in planning your financial budget while ensuring that you are able to have command over your financial plan before taking a loan.
Mswipe facilitates a business loan EMI calculator providing you with multiple features and benefits to rely upon. You can compare our business loan interest rates, and eligibility criteria while calculating your monthly EMI.