Understand The EMI Calculator & How To Use
Whether you apply for a business loan, home loan, or a commercial loan, you need to pay an Equated Monthly Instalment (EMI). To determine the monthly payments correctly, you utilise EMI calculators. When you decide to apply for a loan, you should research available types of loans to meet your different financial needs. Today, numerous financial institutions and lenders provide all different types of loans to fulfil various financial requirements of people. As you take advance cash from the lenders to buy inventory or solve business-related issues, it is clear that you need to repay the borrowed money. Furthermore, you need to pay some interest along with the principal loan amount to the lender. If you have taken a business loan, then an EMI calculator for a business loan can assist you in finding the accurate monthly instalments and organise the payments.
Avail a Loan for Business without Security
- Bank offers business loans with collateral that most small business owners usually fail to give. For such cases, lenders and NBFCs often provide an unsecured business loan in which no collateral or security is asked from the borrower.
- It is the best option for quick business loans, especially for small businesses. There are numerous lenders and financial institutions like ZipLoan offering online business loans without any security along with easy terms and conditions. No complicated procedures or documentation is listed for business funding with them. Also, you can repay the amount of loan over a period of 12-24 months.
The features of a business loan without security are as follows:
- No collateral needed
- Simple criteria for loan approval
- Competitive rate of interest
The formula for Business Loan EMI Calculator
It is daunting to calculate EMI manually as it is a long and time-consuming procedure. To determine EMI, you need to know the correct loan amount, interest charged on that amount, and the tenure for which you need to borrow the amount. The mathematical formula with which you can calculate business loan EMI is given below:
P*r* (1+r) ^n/ ([(1+r) ^n]-1)
In this given formula,
- P is the amount of loan that you are willing to borrow
- r represents the rate of interest that you need to pay every month
- n represents your tenure, the duration of your loan repayment in months
Though, it is highly suggested to calculate your loan EMI by using a business loan EMI calculator that provides you with instant and precise results. This way, you will not only avoid mistakes or errors but also let you see the different EMI possibilities for you to pick the most suitable one.
Factors influencing Business Loan Eligibility
A business loan can employ without security; it depends on the lender that provides a loan and then the amount of risk they are ready to take. Zip Loan is a prominent name that offers collateral-free business loans ranging between 1 lakh to 5 lakhs to existing businesses. Getting approval and money is possible within three days if you have all the essential documents and you meet the eligibility criteria.
Being eligible for a business loan, you need to consider several factors. Every lender that provides loans will look into different criteria before offering it. Some essential elements are mentioned below:
- You should be a minimum of 21 years old and a maximum of 55 years.
- Your business should be making profits for at least the last 2 years.
- The minimum annual banking credit should be of 5 lakhs.
Advantages of Business Loan Calculator
The online business loan calculator will assist you to calculate your monthly payments and the interest rate for financing your business projects. In addition, you will get the option to view a complete loan amortization schedule. Also, a business loan EMI calculator determines your EMI and also offers multiple advantages, which are given below:
- Saves Time: Utilising an EMI calculator leads to the quick calculation of EMI just in a few seconds. It saves your time in doing complicated calculations with ease. All you need to do is enter the necessary loan details such as interest rate, amount, loan tenure, and then you’ll be able to acquire the EMI for your business loan.
- Precise Results: At times, manual calculations lead to wrong calculations or errors and thus, incorrect results. To avoid such blunders, an EMI calculator is essential. It permits you to determine error-free EMI correctly in an instant.
- Organise your Finances: Determining EMI permits to assess if you would be able to pay a certain level of EMI. The amount of your EMI based on your income and savings as you can’t set an amount that you can’t pay quickly every month.
- Estimate Several Schedules: An EMI calculator enables you to view the amortisation schedules and EMIs for multiple combinations of interest rates and loan tenures. Hence, permitting you to select the EMIs that match your repayment or servicing abilities.
