EMI on a ₹20 lakh business loan
The table shows the monthly EMI on ₹20 lakh at a few illustrative interest rates and tenures, worked out with the standard reducing-balance formula.
| Tenure | EMI at 14% | EMI at 18% | EMI at 22% |
|---|---|---|---|
| 12 months | ₹1,79,574 | ₹1,83,360 | ₹1,87,189 |
| 24 months | ₹96,026 | ₹99,848 | ₹1,03,756 |
| 36 months | ₹68,355 | ₹72,305 | ₹76,381 |
| 48 months | ₹54,653 | ₹58,750 | ₹63,012 |
| 60 months | ₹46,537 | ₹50,787 | ₹55,238 |
At 18%, choosing 60 months instead of 12 lowers the EMI but raises the total interest from about ₹2,00,320 to about ₹10,47,211. The rates here are examples only; your rate depends on the lender and your profile. Try other numbers in the calculator below or read how EMI is calculated.
Who borrows ₹20 lakh
₹20 lakh is often a machinery purchase, a larger inventory for a trader or distributor, or a unit's first expansion.
What to watch at ₹20 lakh
Mudra's Tarun Plus category goes up to ₹20 lakh, but only for borrowers who took and repaid a Tarun loan (added in Budget 2024-25). For machinery, a loan tied to the equipment may be cheaper than an unsecured one — see machinery loan. Lenders will read your bank statements for steady credits and existing EMIs.
₹20 lakh compared with nearby amounts
At an illustrative 18% for 36 months:
| Amount | EMI | Total interest |
|---|---|---|
| ₹10 lakh | ₹36,152 | ₹3,01,486 |
| ₹20 lakh (this page) | ₹72,305 | ₹6,02,972 |
| ₹30 lakh | ₹1,08,457 | ₹9,04,459 |
Eligibility
Lenders look at business vintage, turnover, banking history, GST and ITR filings, existing debt and the owner's credit record. The EMI of about ₹72,305 (18%, 36 months) should fit comfortably within the business's monthly surplus, including in slow months. See business loan eligibility.
Documents and how to apply
You'll usually need PAN and KYC of the owner and business, business proof (Udyam, GST, licence or incorporation documents), ITR or financials and 6 to 12 months of bank statements — see the documents checklist. With Oxon Fintech you fill in one short application, share bank statements digitally through Account Aggregator with your consent, and see the offers from our lending partners that fit your profile. Read the lender's Key Fact Statement before you accept; the lender pays the money into your bank account.