SBI Business Loan Emi Calculator

Why Should You Take A Business Loan From SBI

• SBI offers low-interest rates on business loans: State Bank of India offers low interest rates on its business loans. The interest rate is based on the Marginal cost of funds-based Lending Rate (MCLR).
• Collateral-free Loans: SBI offers collateral-free business loans with EMIs of up to Rs. 1 crore.
• Easy Application Process: The application process is simple and hassle-free. You can get through the whole process quickly and easily.
• Flexible Repayment Tenure:SBI offers its borrowers a flexible loan repayment tenure that ranges from one year for working capital to 15 years for monetary loans.
• Business Loans for Women: SBI has business loans specially designed for women. SBI offers the Stree Shakti Package for women-owned businesses or businesses where 50% of the company shares are owned by women industrialists. Women entrepreneurs can get a concession of 0.05% interest rate for loans between Rs. 2 Lakhs to Rs. 50 Lakhs.

Comparison of SBI Business Loan With Other Business Loan Lenders

Factors That Affect Business Loan EMI Computation

• Principal Amount: The amount borrowed is a very important factor impacting the SBI business loan EMI calculation. If the loan amount borrowed is high, then the EMIs will increase. Else, if the loan amount borrowed is lower, then EMIs will be lower.
• Interest Rates: The rate of interest is also an important factor that impacts the business loan EMI calculation. If the rate of interest is high, the EMI is also high, and lower the interest rate, the EMI will be lower. Before you take a personal loan, compare the interest rates offered by various lenders and choose the most suitable one.
• Loan Tenure: Choose the tenure of the loan. If the loan tenure is bigger, then the business loan EMIs will be smaller, but the outgo of interest rate will be higher. If the loan tenure is smaller, then the business loan EMIs will be higher but the interest outgo will be lower.

How Is The SBI Business Loan EMI Computed

Here is the formula to compute business loan EMI

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 = 50 Lakhs, R = 10%, N = 5 years

Therefore,

E = [50,00000 x 10/100 x (1 + 10/100)^5]/ [(1 + 10/100)^(5 -1)]

The EMI calculated = 106235

The total interest = 1374113

Using the above formula is a cumbersome task and that is why the online SBI business loan EMI calculator has been developed. All you have to do is to enter the loan amount, loan tenure, and interest rate, and the result will be displayed instantly.

Steps To Use The SBI Business Loan EMI Calculator

Step 1: Move the sliders for the parameters – Principal, loan tenure, and rate of interest and place them at the required values.

Step 2: The calculator displays the EMI instantly.

Step 3: The total interest payable is also displayed.

Benefits of Using SBI Business Loan EMI Calculator

• Accurate Calculations: Manual calculations are prone to errors, but using a business loan EMI calculator will help you come up with correct figures.
• Simple and easy to use: All you need to do is enter three parameters – loan amount, loan tenure, and interest rate. The business loan EMI will be displayed. Not only that, the total amount payable, total interest payable, amortization table etc. are shown.
• Easily Accessible: You can access this calculator anytime and anywhere - from your mobile, desktop, tablet, etc.
• Calculate EMIs for Loans of Different Amounts and Tenures: The SBI business loan EMI calculator allows you to compute the EMIs for various combinations of amounts and tenures. Before you try out various combinations, it is essential to know the interest rate.
• You will get an Amortization schedule: You can split the total EMIs into principal and interest repayment at particular points during the loan period with the help of the SBI Business Loan EMI Calculator. With each payment, the borrower can get a thorough understanding of the outstanding loan balance and the amount of interest they are paying.
• Compute the Outstanding Amount: Using the SBI business loan EMI calculator, you can find out the tenure of the loan at any given point of time by knowing the outstanding amount. So, you can now strategize on how to shorten the tenure of the loan through prepayment, foreclosure, or a balance transfer to a lender who offers lower interest rates.
• Compare EMIs: The SBI business loan EMI calculator helps you compare the SBI business loan EMI with the business loan EMIs of several other banks for various tenures, loan amounts, and interest rates. This will help you take the business loan which is most suitable for you.

SBI Business Loan Amortisation Calculator

Amortization is the process of dividing a loan with a fixed rate into equal installments. The computation of the principal and interest amount to be paid monthly in the form of EMIs is broken down into an amortization schedule. Let us now understand the amortization table with a quick example:

Let the loan amount be 10 Lakhs, interest rate be 16.99%, and tenure in months be 60.

The monthly EMI will be Rs. 24,847

The total interest amount is Rs. 4,90,832

The total amount (Principal + interest) is Rs. 14,90,832

The tenure in months is 60

The amortization schedule is

Conclusion

The SBI business loan EMI calculator is highly useful to compute the business loan EMI. After computing the business loan EMI, you can easily choose a loan with the loan amount and tenure suitable to you. You can also compare between various lenders based on the EMI for different durations and loan amounts.