ICICI Bank Business Loan Emi Calculator

Why Should You Take A Business Loan From ICICI Bank

• Easy collateral-free loans
• Hassle-free, application and disbursal process
• A wide range of business loans for SMEs
• Specially designed business loans for business upgradation and expansion
• ICICI Bank offers business loans for various reasons - upgrade inventory, infrastructure development, meet working capital needs, buy equipment, expand operations or enhance any area of business
• If you are eligible, you can avail products under business installment loans [BIL] and repay in equal installments at fixed intervals.
• If you are eligible, you can avail Business loan installment products and repay in equal installments at fixed intervals.
• You can also take advantage of options such as prepayment or pre-closure on the business installment loans after 12 EMIs. You have to pay the required pre closure charges

Comparison of ICICI Business Loan With Other Business Loan Lenders

Parameters To Consider While Computing ICICI Business Loan EMI

There are multiple factors that a person must consider before choosing a business loan. Amongst them, the business loan EMI is a very important aspect. While computing the business loan EMI, the following 3 factors have to be considered mainly.

• Business Loan Interest Rate: Interest rates impact business loan EMIs in a major way. The higher the interest rate, the higher is your business loan EMI and the lower the interest rate, the lower is your business loan EMI. If your credit profile and the financial standing of your business are good, you will get a favorable interest rate for your business loan. Most lenders will assess your credit profile based on your CIBIL™ score.
• Loan Amount: The loan amount has a big impact on your business loan EMI. Higher loan amounts require higher EMI payments while lower loan amounts will require only lower EMI payments.
• Repayment Tenure: The loan term can be changed to help the applicant in case he has any financial crunch and is not able to repay the loan over the said term. If your loan term is larger, the EMIs will be spread over a longer period and will be smaller. However, the interest payable over the tenure will be higher. If your loan tenure is smaller, the EMIs will naturally be bigger due to the smaller number of interest. But, the outgo of interest for the loan period will be lower.

How To Compute The ICICI Bank Business Loan EMI

You can use the ICICI Bank business loan EMI calculator to compute the business loan EMI. All you have to do is enter the loan amount, loan tenure, and the interest rate. The business loan EMI gets displayed instantly. Also, you will get a thorough amortization schedule and EMI cost.

You can also use the mathematical formula presented below to compute the interest and EMI due

EMI = P × r × (1 + r)n/((1 + r)n - 1)

• The EMI represents the equated monthly installment
• P is the principal business loan amount
• R denotes the interest rate applicable on the secured business loan.
• N is the repayment duration.

Let us consider an example:

P = Rs. 4 Lakhs

N = 3 years

R = 11%

The monthly loan EMI is Rs. 13,095

This formula is difficult and time-consuming to use. That is why we have a simple online tool like the ICICI business loan EMI calculator to compute the EMI. You will get an instant result. The calculator also displays the interest payable = 71,437 and the total amount payable = 4,71,437.

Why Should You Use An ICICI Business Loan EMI Calculator

• Save Time: Using the formula is very time-consuming and increases effort. So, you can use an online business tool like the ICICI business loan EMI calculator to save time.
• Get Accurate Results: When you use the formula for calculations, you are prone to make errors as it is done manually. On the other hand, using a simple online business tool like the ICICI business loan EMI calculator yields accurate results.
• Evaluate your Affordability: When you know the business loan EMI beforehand, you will be able to ascertain whether you can repay your loan in time. So, use the ICICI business loan EMI calculator to ascertain your affordability.
• Better Financial Planning: The most significant benefit of using an EMI calculator is that you can plan your finances better for the future. You can have a clear estimate of your monthly budgets and how much you need to spend each month for EMI. Use the ICICI business loan EMI calculator to do better financial planning.
• Compare Different Lenders: After computing your monthly EMIs for various lenders, you can compare between the various business loan EMIs. Choose the most affordable business loan from the options available.

Amortization Table

The amortization table is a schedule showing how the borrowed amount is repaid over the loan tenure. The EMI remains constant over the duration of the loan but the principal and the interest change over the period of the loan. You can find out the outstanding loan amount at any point of time from the amortization schedule.

For instance, Take a loan amount of 4 Lakhs in 3 years at 11%. The amortization schedule will be

The ICICI business loan EMI calculator also yields the amortization schedule. One can know the balance loan amount at any point of time.

Conclusion

The ICICI business loan EMI calculator is a simple and easily available tool. Using this, you can get the EMI instantly.