Business Loan EMI Calculator

Calculate monthly EMI for MSME business term loans, working capital, and equipment financing.

Loan Amount

$100K$50M

Annual Interest Rate

8%28%

Loan Tenure

1 Mo120 Mo

Monthly EMI

$44,489

Total Interest Payable

$669,334

Total Amount Payable

$2,669,334

Principal (75%)Interest (25%)

Principal vs Interest

Yearly Breakdown

Amortization Schedule

Year	EMI	Principal	Interest	Balance
Year 1	$533,868	$310,582	$223,286	$1,689,418
Year 2	$533,868	$349,970	$183,898	$1,339,448
Year 3	$533,868	$394,358	$139,510	$945,090
Year 4	$533,868	$444,371	$89,497	$500,719
Year 5	$533,858	$500,719	$33,139	$0

About Business Loans

Business loans provide capital for business expansion, equipment purchase, working capital, inventory financing, or startup funding. Both secured (against property/machinery/FD) and unsecured variants are available. Interest rates range from 10–18% for unsecured loans and 9–13% for secured. Eligibility requires minimum 2–3 years of business vintage, consistent turnover, a good personal CIBIL score (720+), and the CIBIL MSME Rank (CMR). Government schemes like MUDRA, CGTMSE, and SIDBI offer collateral-free credit guarantees for MSMEs.

EMI Formula

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

Where P = Principal, r = Monthly Interest Rate, n = Number of Months

Secured vs unsecured business loan?

Secured loans (against property, machinery, or inventory) offer 2–4% lower interest rates and higher loan amounts (up to ₹10 Cr+). Unsecured loans (up to ₹50–75 lakh) are approved faster (3–5 days) but carry higher rates. If you have collateral available, always prefer secured loans for long-term borrowings.

What is the CIBIL MSME Rank (CMR)?

CMR is a business credit score (1–10, lower is better) that banks use alongside your personal CIBIL score. CMR 1–3 gets the best rates. Build your CMR by taking small loans, paying on time, keeping business credit utilization low, and maintaining clean GST and IT filing records.

MUDRA loans for new businesses?

MUDRA (Micro Units Development & Refinance Agency) offers collateral-free loans: Shishu (up to ₹50,000), Kishore (₹50,000–₹5L), Tarun (₹5L–₹10L). Apply through any scheduled commercial bank or MFI. Interest rates are 8–12% p.a. No collateral required. Ideal for micro-businesses, street vendors, and small manufacturers.

Frequently Asked Questions

What is the minimum turnover required for a business loan?

Requirements vary by lender. Most scheduled banks require annual turnover of ₹20–40 lakh for term loans. NBFCs like Bajaj Finance, Lendingkart, and FlexiLoans may accept lower turnovers (₹5–10 lakh) for short-tenure working capital loans with higher interest rates.

What documents are needed for a business loan?

KYC of proprietor/partners/directors, business registration (UDYAM/GST/Shop Act), audited financials (2–3 years), bank statements (12 months), ITR with computation (2–3 years), property documents (if secured), and any existing loan sanction letters.

What is the maximum unsecured business loan amount?

Unsecured business loans typically go up to ₹50–75 lakh from banks and ₹1–2 crore from select NBFCs. The amount is based on your business turnover (typically 20–30% of annual turnover), CIBIL score, and repayment track record.

Can a business with 1 year vintage get a loan?

Most banks require 2–3 years. However, some NBFCs (Lendingkart, NeoGrowth, Kinara Capital) and fintech lenders offer loans to businesses with 1–2 year vintage using alternate data (GST returns, bank transactions, POS data). Rates will be higher (18–24%).

Is interest on business loan tax deductible?

Yes. Interest paid on business loans is fully deductible as a business expense under Section 37(1) of the Income Tax Act, reducing your taxable business income. Principal repayment is not deductible. Maintain proper documentation and bank receipts for claiming the deduction.