Learn how to calculate EMI for a Rs10 lakh business loan with an EMI calculator to plan repayment efficiently.
When the business loan amount and tenure are fixed, the interest rate becomes the most important factor that affects your Equated Monthly Installment (EMI). Higher EMIs might make it challenging to stay on track to repay the loan. You can calculate Rs10 Lakh business loan EMI for 5 years for different interest rates to determine how much money you have to pay monthly and manage your finances accordingly.
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Compare Business Loan Interest Rates
The table below shows the interest rate, maximum loan amount, loan tenure, and other details offered by some financial institutions and platforms in India:
| Provider or Lender | Interest Rate | Loan Amount | Processing Fees |
| Bajaj Finance Limited | 14% to 26% per annum | Up to Rs80 Lakh | Up to 3.54% of the total amount |
| Axis Bank | 11% to 25% per annum | Rs50,000 to Rs75 Lakh | Up to 2% of the total amount + applicable taxes |
| Kotak Mahindra Bank | 9% to 25% per annum | Rs3 Lakh to Rs 1 crore | Up to 2% of the total amount + taxes as applicable |
| Tata Capital | 12% to 26% per annum | Rs40,000 to Rs90 Lakh | Up to 3% of the total amount + taxes as applicable |
Disclaimer: All interest rates listed above are subject to change at the lender’s discretion. Please review the respective lenders’ terms and conditions, along with the latest updates, before making a purchase.
Calculate EMI for a Rs10 Lakh Business Loan for 5 Years
You can calculate a Rs10 Lakh business loan EMI for 5 years using this formula:
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EMI=Pr(1+r)n(1+r)n- 1
Here,
- ‘P’ is the Principal Loan Amount
- ‘r’ is the monthly interest rate (interest rate per annum/12) converted to decimal
- ‘n’ is the loan tenure in months.
Let’s consider an example where you are taking ?10 Lakh business loan for 5 years at an interest rate of 18% per annum.
In this case, your monthly interest rate will be 18/12, which is 1.5% and 0.015 when converted to decimal.
Similarly, the tenure will be 5×12 = 60 months. Thus, the formula to calculate EMI in this scenario will be:
EMI = 10000000.015(1+0.015)60(1+0.015)60- 1
As per calculations, the EMI amount will be Rs25,393.43 per month. Here, the interest paid will be ?5,23,606, and the total amount paid will be Rs15,23,605.65.
While you can do this long calculation to find the EMI, you can also rely on EMI calculators available on the websites of loan providers.
Eligibility Criteria & Documents Required
Eligibility and documents required to get a business loan can differ among lenders. However, most of them have some standard requirements, such as:
- Age limit: Many business loan providers require the applicant to be between a specific age range. In addition to the applicant’s age, some banks require the business to have been operational for at least a few years.
- Firm type: Financial institutions can offer different loan schemes for different types of firms, such as partnerships, proprietorships, and Limited Liability Partnership (LLP) companies.
- Occupation: Your business loan eligibility depends on whether you are self-employed, a business owner, a proprietor, a Non-Government Organisation (NGO), or a charitable organisation.
- Profitability: Some banks may offer business loans only to companies that are already in profit.
Once you check the eligibility, you must prepare all the documents for the business loan to apply quickly. Here are some common documents lenders might ask you to submit:
- Business account’s bank statement
- Business registration proof
- Business PAN
- Applicant PAN
- Photograph
- Utility bills / Rent agreement
- Direct PAN and Adhaar Card
Key Takeaways
You can use the formula stated above or an EMI calculator tool to calculate the EMI of a Rs10 Lakh business loan with 5 years tenure. Calculating EMI before applying for the loan can help you understand if repaying will pose a significant financial challenge for your business. If you don’t calculate EMI beforehand and take a business loan that you cannot repay on time, it will impact your company’s MSME rank.
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