Lendingkart Business Loan EMI Calculator

EMI Calculation Formula

Managing your finances wisely is essential, especially when you're considering taking out a business loan. Imagine you want to borrow ₹5 lakhs at an annual interest rate of 12% to meet your business needs. How do you determine the monthly repayment amount that fits your budget? This is where the Equated Monthly Installment (EMI) calculation comes into play. By using a simple formula, you can compute your EMI accurately.

EMI = [P x R x (1+R)^N]/[(1+R)^N - 1]

Where:

EMI = Equated Monthly Installment

P = Principal Loan Amount

r = Monthly Interest Rate

n = Loan Tenure

Now, let's calculate the Equated Monthly Installment (EMI) for a loan of ₹5 lakhs with an annual interest rate of 12% and a tenure of 36 months (3 years).

Let's input these values into the formula:

EMI = [5,00,000 × 0.01 × (1 + 0.01)^36] / [(1 + 0.01)^36 - 1]

EMI = 16,607

So, for a ₹5 lakh loan at a 12% annual interest rate with a 36-month tenure, the Equated Monthly Installment (EMI) would be approximately ₹16,607.

Lendingkart EMI Calculation With Different Loan Amounts

Explore the EMIs for loan amounts ranging between 1 Lakh to 20 Lakhs, at a 12% annual interest rate. This table provides you with the monthly repayment figures for both 12-month and 24-month loan tenures, allowing you to plan your finances effectively.

How to Use Lendingkart Business Loan EMI Calculator?

Discover how to make the most of the Lendingkart Business Loan EMI Calculator. With our step-by-step guide, you can estimate and manage your loan repayments effectively.

• Begin by visiting the EMI Calculator webpage.
• Input the amount of the loan you're considering.
• Specify the relevant interest rate applicable to your loan.
• Choose the desired loan tenure in terms of months.
• Review the calculated Equated Monthly Installment (EMI), which is presented with a graphical representation for clarity.

Advantages of Using Buddy Loan EMI Calculator

Discover the advantages of precise Equated Monthly Installment (EMI) calculations using Buddy Loan EMI Calculator. This tool helps to make informed decisions and effectively manage the finances throughout the loan journey. Here’s why you can use Buddy Loan EMI Calculator:

• Accurate Planning: the EMI calculator is great for planning because it tells you exactly how much you'll have to pay for your loan every month.
• Find the Right Loan: you can explore the EMIs for different loan amounts to see which loan is best for your budget.
• Smart Choices: it helps you make smart decisions about your business loans, so you can reach your financial goals seamlessly.
• Easy Access: you can use it online, making it super convenient to plan your loans from home.

Factors Affecting Lendingkart Business Loan EMI

EMIs for a business loan depend on various factors like loan amount, interest rate, and tenure. These key elements, such as loan amount, interest rate, and tenure, play a significant role in determining the monthly repayment amount and overall cost of the loan. Here are the factors that affect Lendingkart Business Loan EMI:

• Loan Amount: the principal loan amount you borrow significantly impacts your EMI. A higher loan amount results in larger EMIs, while a lower amount leads to smaller monthly payments.
• Interest Rate: the annual interest rate applied to your loan plays a pivotal role. A higher interest rate increases the EMI, while a lower rate reduces it. Therefore, it's essential to secure the most favourable interest rate.
• Loan Tenure: your loan duration has an ever-lasting impact on your EMIs. Longer tenures reduce the monthly EMI but increase the overall interest paid. Conversely, shorter tenures increase monthly payments but reduce the interest paid.
• Credit Score: your credit score impacts the interest rate offered by lenders. A higher credit score can potentially secure a lower interest rate, thus reducing the EMI.
• Down Payment: making a larger down payment at the outset of the loan can decrease the loan amount and, subsequently, the EMI.

As you now have an idea of the EMI calculation and other relevant details, we hope that you can plan and manage your business loan with lendingkart in a better way!