EMI Calculator Tool
Enter your loan amount (principal), annual interest rate, and tenure in months to calculate monthly EMI. Example: ₹5,00,000 loan at 12% annual interest for 60 months (5 years) = ₹10,720 monthly EMI. The calculator shows total amount paid (₹6,43,200) and total interest cost (₹1,43,200). Business loans for fashion/textile businesses typically range 11-14% interest, while MSME loans may be 8-10%. Adjust tenure carefully - longer terms mean lower EMI but more total interest.
EMI Formula Explained
EMI = [P x r x (1+r)^n] / [(1+r)^n - 1], where P is principal, r is monthly interest rate, and n is number of months. Monthly rate = annual rate / 12 / 100. For ₹5,00,000 at 12% for 60 months: monthly rate = 0.01, EMI = [500000 x 0.01 x 1.01^60] / [1.01^60 - 1] = ₹10,720. The formula ensures each EMI covers some principal and some interest. Early months pay more interest; later months pay more principal. Understanding this helps negotiate better loan terms.
Amortization Schedule
Your amortization schedule shows how each EMI breaks down: principal portion and interest portion. In month 1 of our example, ₹10,720 consists of ₹4,987 principal + ₹5,733 interest. By month 60, it is ₹10,598 principal + ₹122 interest. Total principal repaid always equals loan amount; total interest equals stated cost. This schedule is crucial for forecasting cash flow and understanding when you will have paid down significant principal. Download it to track loan payoff progress.
Business Loan EMI for Sellers
Small business sellers can access ₹1-₹50 lakh loans from banks and fintech at 8-14% annual interest. HDFC Bank MSME loans: 11-13%, 24-60 month tenure. Bajaj Finserv business loans: 12-15%. RBL Bank textile industry loans: 9-11% (cheaper due to sector focus). Calculate EMI before applying: a ₹10,00,000 loan at 12% for 48 months = ₹24,133 monthly. Ensure your monthly revenue supports this EMI plus GST, inventory, and salary. Most lenders want 6+ months bank statements proving consistent income.
Bajaj Finserv / HDFC Comparison
HDFC Business Loan: ₹1-₹50 lakh, 11-13% interest, 24-60 months. Requires business registration, 2 years operation, ₹5 lakh annual revenue. Bajaj Finserv: ₹1-₹25 lakh, 12-15% interest, 12-60 months. Faster approval (24 hours vs 5-7 days), accepts newer businesses (6 months+). Example: ₹5,00,000 at HDFC 12% for 60 months = ₹10,720/month. Same at Bajaj 13% = ₹10,955/month - ₹235 difference! Use this calculator to compare exact costs before applying.
FAQ
Can I prepay EMI? Yes, most lenders allow prepayment without penalty. This saves interest - prepaying year 3 of a 5-year loan can save ₹80,000+. Is EMI fixed? Yes, in fixed-rate loans (most in India). Floating rate loans change if repo rate changes. What is the maximum tenure? Most lenders offer 60-84 months max. Longer tenure = lower EMI but higher total interest. Should I take the longest tenure? No - shorter tenure is better. 48 months saves significantly on interest vs 60 months, and you own the asset sooner.