Check the EMI for your MSME Loan by providing the Loan Amount, Interest Rates, (per annum), and loan tenure (in months) details.
Your Amortization Schedule (Yearly/Monthly)
An MSME loan is financial support that helps with the growth and development of Micro, Small, and Medium Enterprises. These loans are typically availed by businesses seeking capital for expansion, working capital, or to meet operational expenses.
To assist potential borrowers in financial planning, MSME loan calculators provide estimates of Equated Monthly Installments (EMIs), total interest payable, and overall loan affordability. By inputting loan amount, interest rate, and repayment tenure, users can calculate their potential repayment obligations.
MSME Loan EMI for Different Loan Amounts
Now, assuming the interest rate to be 9% and a loan period of 2 years, let’s check the MSME / SME loan EMI for different loan amounts.
| Loan Amount | MSME Loan EMI | Total Payable Amount |
|---|---|---|
| ₹50,000 | ₹2,284 | ₹54,821 |
| ₹1 Lakh | ₹4,568 | ₹1,09,643 |
| ₹2 Lakhs | ₹9,136 | ₹2,19,286 |
| ₹3 Lakhs | ₹13,705 | ₹3,28,930 |
| ₹4 Lakhs | ₹18,274 | ₹4,38,573 |
| ₹5 Lakhs | ₹22,842 | ₹5,48,216 |
| ₹6 Lakhs | ₹27,410 | ₹6,57,860 |
| ₹7 Lakhs | ₹31,979 | ₹7,67,503 |
| ₹8 Lakhs | ₹36,548 | ₹8,77,147 |
| ₹9 Lakhs | ₹41,116 | ₹9,86,790 |
| ₹10 Lakhs | ₹45,685 | ₹10,96,433 |
| ₹20 Lakhs | ₹91,369 | ₹21,92,867 |
| ₹30 Lakhs | ₹1,37,054 | ₹32,89,301 |
| ₹40 Lakhs | ₹1,82,739 | ₹43,85,735 |
| ₹50 Lakhs | ₹2,28,424 | ₹54,82,169 |
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Steps to Use MSME Loan EMI Calculator
An MSME loan EMI calculator is an online tool that helps you estimate your monthly repayments (EMIs) based on the loan amount, interest rate, and repayment tenure.
This is how the MSME loan EMI calculator works:
- Step 1: Visit the business loan EMI calculator page.
- Step 2: Enter these details:
- Loan amount: The total sum you need to borrow.
- Interest rate: The annual interest rate of your MSME loan.
- Loan tenure: The repayment period for your MSME loan.
- Step 3: The calculator instantly calculates & displays your estimated Equated Monthly Installment (EMI) along with interest & total payable amount.
MSME loan EMI calculator is useful for:
- Budgeting: Accurately forecasting monthly expenses.
- Loan Comparison: Evaluating different loan options based on EMIs.
- Financial Planning: Making informed decisions about loan affordability.
Calculation of MSME Loan EMI
The Equated Monthly Installment (EMI) is calculated using the following formula:
| EMI = [P x R x (1+R)^N] / [(1+R)^N – 1] |
|---|
Where:
- P is the principal loan amount.
- R is the interest rate per month.
- N is the number of monthly installments.
Example Calculation:
Let’s consider an MSME loan of ₹2 lakhs at a 9% interest rate and 1-year tenure.
Given,
Loan Amount (P) = ₹2,00,000
Annual Interest Rate = 9%
Loan Tenure = 1 year
To calculate:
Monthly Interest Rate (R) = 9% / 12 / 100 = 0.0075
Number of Monthly Installments (N) = 1 year * 12 = 12
Now, applying the formula:
= [200000 x 0.0075 x (1+0.0075)^12] / [(1+0.0075)^12 – 1]
= [200000 * 0.0075 * 1.093807] / [1.093807 – 1]
= [1640.71] / [0.093807]
= ₹17,484.29
Therefore, the EMI for a ₹2,00,000 loan at 9% interest for 1 year is approximately ₹17,484.29.
Loan Amortization Table for a MSME / SME Loans
The table provided below showcases the loan amortization of ₹2 lakhs MSME loan at a 9% p.a interest rate and 1-year tenure.
| Month | EMEMI (₹) | Interest Paid (₹) | Principal Paid (₹) | Outstanding Balance (₹) |
|---|---|---|---|---|
| January | 17,484.29 | 1,500.00 | 15,984.29 | 1,84,015.71 |
| February | 17,484.29 | 1,380.12 | 16,104.17 | 1,67,911.54 |
| March | 17,484.29 | 1,259.34 | 16,224.95 | 1,51,686.59 |
| April | 17,484.29 | 1,137.65 | 16,346.64 | 1,35,339.95 |
| May | 17,484.29 | 1,014.95 | 16,469.34 | 1,18,870.61 |
| June | 17,484.29 | 891.23 | 16,593.06 | 1,02,277.55 |
| July | 17,484.29 | 766.53 | 16,717.76 | 85,559.79 |
| August | 17,484.29 | 640.85 | 16,843.44 | 68,716.35 |
| September | 17,484.29 | 514.17 | 16,970.12 | 51,746.23 |
| October | 17,484.29 | 386.47 | 17,097.82 | 34,648.41 |
| November | 17,484.29 | 257.76 | 17,226.53 | 17,421.88 |
| December | 17,484.29 | 128.06 | 17,356.23 | 0.65 |
Note: The provided EMI is an approximation. Actual EMI may have slight variations based on calculator precision and rounding practices.
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Features of MSME Loan
MSME (Micro, Small, and Medium Enterprises) loans are crucial for small business owners and entrepreneurs seeking financial support. The table presented below shows the features of MSME loans.
| Feature | Description |
|---|---|
| Purpose | Funding for business expansion, working capital, purchasing equipment, raw materials, etc. |
| Loan Amount | Varies depending on lender and business size, typically ranging from a few lakhs to crores. |
| Interest Rates | Competitive interest rates compared to other loan types. |
| Repayment Tenure | Flexible repayment options, ranging from short-term to long-term. |
| Collateral | Many lenders offer collateral-free options, especially for smaller loan amounts. |
| Processing Time | Relatively quick approval and disbursement compared to other loan types. |
| Documentation | Minimal documentation required, simplifying the application process. |
| Government Support | Many lenders offer online application and tracking for convenience. |
| Flexibility | Options for term loans, working capital loans, overdrafts, and more to suit business needs. |
Note: Specific features may vary depending on the lender and the type of MSME loan.
Benefits of MSME Loan Calculator
An EMI calculator specifically designed for MSME and SME loans helps potential borrowers estimate their monthly repayments based on loan amount, interest rate, and tenure. It can be a valuable tool for business owners for the following reasons.
- Accurate EMI Estimation: Provides a precise calculation of the monthly installment, helping you plan your cash flow effectively.
- Financial Planning: Enables you to create a realistic budget by understanding the exact amount to be repaid each month.
- Loan Comparison: This helps you to compare different loan offers from various lenders based on interest rates and repayment terms.
- Tenure Optimization: Helps determine the optimal loan tenure that aligns with your business’s financial capacity.
- Affordability Assessment: Assess whether the loan is financially feasible for your business based on your monthly income and expenses.
- Time-Saving: Eliminates the need for manual calculations, saving time and effort.
- Informed Decision Making: Provides essential data to make informed decisions regarding loan selection and repayment strategy.
The calculator will then display the EMI amount, total interest payable, and the total payable amount, helping you make good decisions on your business’s future.
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List of Lenders Offering MSME Loans
The table presented below showcases some of the lenders who offer MSME loans.
You can also check other related Business Calculators below
Know more about different types of business loans offered as per the government schemes by various banks & other private lenders. Check more on this from the links in the table below:
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