Business Loan EMI Calculator

A business loan amortisation table is essentially a schedule detailing at what date you need to pay your EMI. It also splits each month's obligation and informs you how much you need to pay toward principal repayment and interest payment in that month.

When you look at the interest section of the amortisation table, you will notice that the business loan lender expects you to pay more towards the interest component. However, as the loan progresses, you begin to pay more towards the principal outstanding rather than the interest.

You can reduce your monthly obligation towards a business loan by opting for a longer repayment tenure. Since the lender allows you to choose a payback period of up to 36 months, you can opt for a maximum period. But remember, extending the tenure raises the total interest payable on the loan.

Any missed EMI for a loan will be added to the next month's EMI. However, keep in mind that missed EMIs result in late payment charges. It is also detrimental to your credit score. To avoid such situations, it is best to automate your payments to pay EMIs on time.

Financial institutions typically charge a fixed interest rate on a business loan, so the EMI remains constant throughout the loan term. However, if your lender offers this loan at a floating rate or you choose to reschedule the repayment terms, the EMI will change.