HDFC Bank Business Loan Emi Calculator

Why Should You Take A Business Loan From HDFC

• Quick disbursal: HDFC Bank disburses its business loans quickly within 48 hours. So, you need not worry about the lack of finance for your business-related expenditures.
• Huge Loan Amounts: The cap on HDFC Business loans is as high as 50 Lakhs.
• Minimal Documentation: You just need minimal paperwork to get HDFC business loans. Without any collateral, guarantor, or security, you can get HDFC bank business loans to meet your every business need.
• Competitive Interest Rates: HDFC Bank business loan interest rates are quite reasonable. So, you can take out a business loan without worrying about repayments. Of course, interest rates that the bank charges will vary from customer to customer according to creditworthiness, tenure and the purpose for which the business loan is required.
• Flexible Tenures: With an HDFC Bank business loan, you can choose the tenure of the loan. For example, if you want to take out a loan to meet some short-term business needs, you can take a loan for a year. If you want to take it for some reason like business expansion, you can choose a longer loan tenure, say 4 years.

Comparison of HDFC Bank Business Loan EMI With Other Lenders

How To Calculate The HDFC Bank Business Loan EMI

There are three parameters required for HDFC Business loan EMI calculations - principal sum, loan tenure, and rate of interest.

Here is the formula for computing the EMI amount

E = [P x R x (1+R) ^N] / [(1+R) ^ (N-1)]

E = EMI, P = Principal amount, R = interest rate, N = Loan tenure.

Let us consider an example:

P = 25 Lakhs, interest rate = 16.50%, n = 4 years.

E = [25,00000 x 16.50/100 x (1 +16.50/100) ^ 4} / [(1 + 16.50/100) ^ (4-1)]

The monthly EMI will be Rs. 71,493

The above formula is very cumbersome, so you can use an HDFC business loan EMI calculator to compute the business loan EMI. You can get the result instantly upon entering the values for the required parameters.

Step-by-step Guide To Use The HDFC Business Loan EMI Calculator

• There are sliders for each of the three parameters - loan amount, loan tenure, and interest rate
• Move the sliders and place them according to the values of the parameters
• Your monthly EMI will be displayed. A graph shows the loan amount paid in lakhs as years elapse.

Factors Impacting The HDFC Business Loan EMI Calculator

There are mainly three parameters that impact the increase and decrease in the loan amount. They are the loan amount, interest rate, and repayment period.

Principal Amount: The principal is the amount of money borrowed by an individual. If the principal amount increases, then the EMI also increases. If the principal amount decreases, the EMI also decreases.

Rate of Interest: The rate of interest is yet another important factor influencing the HDFC business loan EMI calculator. If the rate of interest is more, the EMI is more and if the rate of interest is less, the EMI is less.

Tenure: Before taking a loan, it is mandatory for the individual to define the repayment period. If your repayment period is long, then the EMIs are lower but the total interest outgo will be higher. But, if tenure is less, the EMIs will be higher whereas the total interest outgo over the period of the loan will be lower.

Benefits of Using The HDFC Business Loan EMI Calculator

• Accurate Calculations: Manual calculations are prone to errors, but business loan EMI calculators always give accurate results. Knowing the EMI accurately will help you to repay your business loan on time without defaulting as you can plan your finances accordingly.
• Quick and time-saving: Manual calculations are time-consuming and cumbersome. Calculators yield instant results based on a few inputs. Thus, using it is speedy and saves time.
• Easily accessible: The HDFC business loan EMI calculator is online and can be accessed easily on all devices - Desktop, laptop, tablet, and mobile. So, you can do the computation anytime, anywhere.
• Visual Representation: Most calculators have a pictorial representation to display the EMI and also the total amount payable, principal amount, and the interest payable. It is a proven fact that visual representations are more effective than text.
• Helps in Financial Planning: As it helps in calculating the EMI, it helps in easy repayment of your business loan. You can also plan your other expenditures accordingly.
• Easy To Use: You just have to enter a few details such as loan amount, loan tenure, and interest rate. The result is displayed instantly. Thus a business loan EMI calculator is very easy to use. You can avoid tedious manual calculations.

Conclusion