Business Loan EMI Calculator
A business term loan EMI is calculated the same way as any other loan, but the decision around it is different: the question is not only whether you can pay the instalment, but whether the borrowing generates more than it costs. The calculator below gives you the instalment and the total interest.
Monthly EMI
₹50,716
₹20 Lakh at 9.99% for 4 years
Interest is 22% of the amount borrowed over this tenure.
Year-by-year repayment schedule
How each year splits between interest and principal. Early years are mostly interest, which is why prepaying early saves so much more than prepaying late.
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | ₹4,28,033 | ₹1,80,553 | ₹15,71,967 |
| 2 | ₹4,72,807 | ₹1,35,780 | ₹10,99,160 |
| 3 | ₹5,22,264 | ₹86,322 | ₹5,76,895 |
| 4 | ₹5,76,895 | ₹31,692 | ₹0 |
This calculator returns arithmetic on the figures you enter. It is not an offer, does not check your eligibility, and cannot predict the rate a lender will sanction. Loans Got Easy is an authorised Direct Selling Agent - we do not sanction, approve or disburse loans.
Match the tenure to what the money buys
Borrowing for machinery that will run for ten years and repaying over three puts avoidable strain on cash flow. Borrowing for a two-month inventory cycle over five years means paying interest long after the stock has sold. A term loan should broadly amortise over the useful life of what it funds. Working capital needs are usually better served by an overdraft or cash credit line, where you pay interest only on what you draw.
How lenders assess a business loan
For an unsecured business loan, lenders typically want two to three years of ITRs, GST returns showing consistent turnover, and bank statements demonstrating that the account is not routinely running to zero. Many work to a debt service coverage ratio, wanting operating profit at roughly 1.25 to 1.5 times the proposed annual repayment. Turnover matters less than the stability and bankability of it.
Secured costs materially less
An unsecured business loan commonly prices in the mid-teens. The same borrower pledging property against a loan against property will usually see a rate several percentage points lower, because the lender's risk is collateralised. On a 20 lakh loan over 5 years, a four-point rate difference is roughly 2.5 lakh in interest. Where property is available and the timeline permits the extra processing, the secured route is generally the cheaper one.
Government schemes can change the arithmetic
CGTMSE-backed loans allow collateral-free lending to eligible MSMEs by substituting a credit guarantee for security. Mudra loans cover smaller ticket sizes for micro enterprises. These carry their own eligibility conditions and documentation, and the lender still makes its own credit decision. Where a business qualifies, the effective cost of borrowing can be meaningfully lower than a standard unsecured term loan.
Rates sourced from partner lender published rate schedules, last verified August 2026. Figures produced by this calculator are indicative and depend entirely on the inputs you provide. The rate you are offered is set by the lender based on your credit profile, income, employer, loan amount and tenure.
Frequently Asked Questions
At 14% p.a. over 5 years the EMI is approximately 46,536, with total interest of about 7.9 lakh. At 16% the EMI rises to about 48,636. Business loan rates vary widely by whether the loan is secured, the vintage and turnover of the business, and the promoter's credit profile.
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Rates last verified August 2026. Loans Got Easy is a loan advisory and Direct Selling Agent. We do not sanction, approve or disburse loans - the lender does, based on its own credit assessment.