How to use the calculator
- Loan amount — slide or type how much funding you need.
- Interest rate — enter a yearly rate close to what lenders may offer your business; the result is an estimate.
- Tenure — choose the number of months.
You'll see the monthly EMI, the total interest and the total amount you would repay.
Plan the EMI around your cash flow
- Compare the EMI with your monthly surplus — what the business has left after costs and existing EMIs — not with your turnover.
- Seasonal business? Make sure you can pay the EMI in your slowest months too.
- Match the tenure to the use — short for working capital, longer for machinery or expansion. See working capital vs term loan.
- Remember the fees — processing fee and other charges are in the lender's Key Fact Statement.
The formula behind it
P is the loan amount, r the monthly rate (yearly rate ÷ 12 ÷ 100), and n the tenure in months. For example, ₹10,00,000 at an illustrative 16% a year for 36 months gives an EMI of about ₹35,157. Read how EMI is calculated.
The figures are estimates. The lender's offer shows the final amount, rate, tenure and fees.