A Complete Guide to Business Loans and Usage of the Emi Calculator
A Business Loan is a credit facility provided by banks and other financial institutes to satisfy the financial needs of businesses and self-employed clients. Individuals, the Ministry of Micro, Small & Medium Enterprises, business owners, entrepreneurs, professionals, and several other corporate entities can use it.
Secured and Unsecured Loans are the primary categories under which Business Loans fall. Secured Loans are those in which you deposit security or collateral with the lender to get the Business Loan. Meanwhile, Unsecured Loans do not require any security or collateral from the bank. A Business Loan calculator computes the equated monthly installments you need to pay towards the Loan.
Banks offer secured and unsecured Business Loans, such as Term Loans, Working Capital Loans, Cash Credit, Overdrafts, Letters of Credit, bill/invoice discounts, Equipment Financing, etc. The minimal Loan amount processed by Small Finance Banks, Regional Rural Banks, or Micro Finance Institutions is as little as Rs. 10,000. Leading commercial and public sector banks offer collateral-free Business Loans for up to Rs. 2 crores.
MSMEs and startups can also get small Business Loans at low-interest rates. Banks provide Business Loans with interest rates up to 16% per year and can lower depending on your profile, eligibility, and business needs. Before you apply for Business Loan, you can use the EMI calculator to decide the repayment amount. You can access the online calculator by entering the necessary Loan information, such as the amount, payback term, and interest rates.
The Loan EMI gets calculated automatically based on your submitted information. When approving the Loan, the lender specifies the exact EMI. There are numerous benefits of using the calculator:
● Reveals the approximate EMI cost that you need to repay.
● Assists with time savings and effective Loan Planning.
● It uses an amortization schedule to show a thorough overview of the Loan.
● Possibility of selecting different plans and EMI installment terms following your needs.
How to Apply?
Step 1: Complete the form's mandatory information and accept the terms.
Step 2: Input details about your company and your basic personal information.
Step 3: A bank representative contacts you after you submit all the information to continue with the Loan application process.
Step 4: The Loan money gets approved to your Bank Account within a specified number of working days after the lender accepts your application.
Thanks to the Business Loan calculator, it is not difficult to apply for such Loans. You only need to select an appropriate tenure and Loan amount. Before applying, it is always advisable to calculate your EMIs to inform you of the monthly payments to make.