Business loans are specially designed financial products, customised to help companies avail funding when they require monetary assistance. Organisations can avail this credit to fulfil any short or long-term requirements of the business.
They can use it to fund their purchase of machinery, land, and building, or increase their working capital. Financial institutions around the country offer business loans at favourable terms to assist companies in availing funding with ease.
Since availing credit is not a hassle anymore, and is only a few clicks away, borrowers can calculate their business loan EMIs and apply accordingly as per their loan amount that fits the repayment capacity. They can take the assistance of specially designed tools like the business loan EMI calculator for this purpose.
Tips to simplify EMI calculations
Calculating EMIs in advance is always a smart move for any borrower. It provides them with a detailed understanding of the debt they are getting into, and they can plan accordingly. Here are some tips to quickly calculate EMIs to avoid future hassle.
- Use online EMI calculators for hassle-free computation
EMI calculators available online can assist borrowers in calculating their monthly obligation without any hassle. These calculators use the simple formula of [P x R x (1+R)^N]/[(1+R)^N-1] for this purpose. Using them reduces the chance of mistakes, and borrowers can assess their monthly repayment amount instantly.
- Know the interest rates applicable
Being aware of the interest rates can also help individuals to simplify their EMI calculations. In case a borrower opts for a floating interest rate, then he/she needs to keep an eye on it to understand if the equated monthly instalments are increasing or decreasing. It will help that individual to adjust his/her finances accordingly.
- Use other handy tools
It is another way to simplify EMI calculation when availing a business loan. Similar to the business loan EMI calculator, using tools like MS-Excel can also help calculate the instalment instantly.
If individuals can integrate the formulas properly, they will always arrive at a closely accurate result. However, it is not as easy to use as a business loan EMI calculator. Borrowers must, therefore, keep an eye on available EMI calculators and choose the best one for computation purposes.
- Consult the company representatives
Financial institutions often provide a dedicated relationship manager who caters to the borrowers as and when needed. In case of any difficulties regarding EMIs, individuals can speak to gain a better understanding of their repayment liability. They will break down the whole payment process and solve any issues that a customer may have.
Typically, if there is a change in the interest rate, borrowers can contact them to get the most reliable information regarding their business loan EMIs and use such information for accurate calculations.
- Check manually
Last but not least, a manual calculation is always an option when a borrower is estimating his/her business loan EMI. However, the manual calculation has its downfalls, and individuals can often make mistakes to end up calculating the wrong amount.
Individuals looking for a business loan can quickly avail one from the likes of NBFCs of the country such as Bajaj Finserv. The company offers a host of benefits with its business loan. Borrowers can avail a credit of up to Rs.20 lakh at an affordable interest rate, flexible tenure, minimal documentation, and without any collateral. They can also use the EMI calculator available on the lender’s website to check their monthly payment liability.
Furthermore, the company also provides pre-approved offers that make the loan application process smooth and less time-consuming. This offer is available on multiple financial products like business loans, personal loans, etc. Borrowers can check their pre-approved offer by providing their essential contact details.
Calculating EMIs beforehand is always vital before applying for a business loan, or any credit for that matter. It helps borrowers to gather an estimation of their monthly obligation towards repayment, and plan their finances accordingly. To make this process more convenient, they can always use a business loan EMI calculator.
