Business Loan Calculator | Small Business EMI & Rates

  • Adam
  • November 14, 2025

Free business loan calculator for startups & SMEs. Calculate EMI, eligibility & interest from 8-25% p.a. Compare rates, get amortization schedule instantly.

Business Loan Calculator – Small Business & Startup Loan EMI Calculator

Calculate your business loan EMI, repayment schedule, and total interest with this comprehensive business finance calculator. Whether you need a small business loan, startup funding, working capital, commercial vehicle financing, or equipment loan, this free business loan calculator helps you plan repayments with accurate monthly installment calculations based on loan amount (₹1 lakh to ₹50 crore), interest rates (8%-25% p.a.), and tenure (12-84 months). Perfect for entrepreneurs, SMEs, MSMEs, and established businesses seeking business bank loans or NBFC financing.

💼 Business Loan EMI Calculator

Calculate monthly payment for your business loan

₹50,000 to ₹50 Crore
Current rates: 8%-25%
12 to 84 months (7 years)
Select loan purpose

Business Loan EMI Results

Monthly EMI
₹33,214
Total Interest
₹1,95,704
Total Payment
₹11,95,704
Interest Rate
12% p.a.

Loan Summary

Component Amount %
Principal Loan Amount ₹10,00,000 83.6%
Total Interest Payable ₹1,95,704 16.4%
Interest Rate 12.00% p.a. -
Loan Tenure 36 months (3 years) -
Monthly EMI ₹33,214 -
Total Repayment ₹11,95,704 100%

✅ Business Loan Eligibility Calculator

Check maximum loan eligibility for your business

Gross monthly turnover
Operating costs + salaries
Current loan EMIs
Years in operation
Personal credit score
12 to 84 months

Your Business Loan Eligibility

Maximum Eligible Loan
₹20,00,000
Affordable EMI
₹60,000
Interest Rate Range
10-12%

Eligibility Analysis

Parameter Value
Monthly Revenue ₹5,00,000
Monthly Expenses ₹3,50,000
Net Monthly Income ₹1,50,000
Existing EMI ₹0
Available for EMI (40%) ₹60,000
Business Vintage 3 years
Credit Score 750-799
Maximum Eligible Loan ₹20,00,000

📊 Loan Amortization Schedule

View yearly payment breakdown

Principal amount
Annual interest rate
1 to 7 years

Amortization Schedule

Year Opening Balance EMI Paid Principal Paid Interest Paid Closing Balance

🏦 Compare Business Loan Rates

Interest rates across banks and NBFCs

Bank/NBFC Interest Rate Max Loan Amount Tenure Processing Fee
State Bank of India 8.75% - 12.60% p.a. Up to ₹50 Crore Up to 15 years 0.50% - 1% + GST
HDFC Bank 10.75% - 22.50% p.a. Up to ₹80 Lakh Up to 5 years Up to 2% + GST
ICICI Bank Repo Rate + 6-6.5% Up to ₹150 Crore Up to 10 years Up to 2% + GST
Axis Bank 12% - 18% p.a. Up to ₹75 Lakh Up to 5 years 1.5% - 2% + GST
Bank of Baroda 8.40% - 13.65% p.a. Up to ₹100 Crore Up to 15 years 0.50% - 1% + GST
Bajaj Finserv 14% - 25% p.a. Up to ₹45 Lakh Up to 7 years Up to 4.72% + GST
L&T Finance 16% - 22% p.a. Up to ₹30 Lakh Up to 5 years 3% - 4% + GST
Tata Capital 14% - 21% p.a. Up to ₹25 Lakh Up to 6 years 2% - 3.5% + GST

Rate Factors: Interest rates depend on business vintage, credit score, turnover, collateral, loan amount, and industry type. Rates shown are indicative and subject to change. Always verify with lender before applying.

Understanding Business Loan Calculators

A business loan calculator is a financial planning tool that helps entrepreneurs and business owners estimate monthly EMI payments, total interest costs, and repayment schedules for commercial loans. These calculators are essential for small businesses, startups, MSMEs, and established enterprises planning to borrow funds for working capital, expansion, equipment purchase, or business acquisition.

Business Loan EMI Calculation Formula

Business loan EMI is calculated using the reducing balance method, same as personal and home loans:

Business Loan EMI Formula:

EMI = [P × R × (1 + R)^N] / [(1 + R)^N - 1]

Where:

  • P = Principal loan amount (in rupees)
  • R = Monthly interest rate (Annual Rate / 12 / 100)
  • N = Loan tenure in months
  • EMI = Equated Monthly Installment

Example Business Loan EMI Calculation:

Loan Amount: ₹10,00,000 (₹10 Lakh)

Interest Rate: 12% per annum

Tenure: 36 months (3 years)

Step 1: Calculate monthly interest rate

R = 12 / 12 / 100 = 0.01

Step 2: Apply the EMI formula

EMI = [10,00,000 × 0.01 × (1 + 0.01)^36] / [(1 + 0.01)^36 - 1]

Step 3: Calculate the result

EMI = [10,00,000 × 0.01 × 1.4308] / [1.4308 - 1]

EMI = [14,308] / [0.4308]

Monthly EMI = ₹33,214

Total Amount Payable: ₹33,214 × 36 = ₹11,95,704

Total Interest: ₹11,95,704 - ₹10,00,000 = ₹1,95,704

Interest as % of Loan: (₹1,95,704 / ₹10,00,000) × 100 = 19.57%

Business Loan Interest Rates 2025

Business loan interest rates in India vary significantly based on lender type, loan amount, business profile, and collateral:

By Lender Type

  • Public Sector Banks: 8.75% - 14% p.a. (SBI, Bank of Baroda, PNB, Canara Bank)
  • Private Sector Banks: 10.75% - 22.50% p.a. (HDFC, ICICI, Axis, Kotak)
  • NBFCs: 14% - 25% p.a. (Bajaj Finance, Tata Capital, L&T Finance)
  • Online Lenders: 18% - 35% p.a. (Faster processing, higher rates)

By Business Profile

  • Established Business (5+ years, good turnover): 9% - 14% p.a.
  • Mid-Stage Business (2-5 years): 12% - 18% p.a.
  • Startups (under 2 years): 16% - 25% p.a.
  • New Business (no track record): 20% - 30% p.a.

By Collateral Status

  • Secured Loans (with collateral): 8.75% - 15% p.a.
  • Unsecured Loans (no collateral): 14% - 25% p.a.
  • CGTMSE Loans (government guarantee): 9% - 16% p.a.

Types of Business Loans

1. Term Loan

Fixed amount disbursed upfront, repaid in monthly EMIs. Used for expansion, equipment, working capital.

  • Amount: ₹1 lakh to ₹50 crore
  • Tenure: 1 to 15 years
  • Interest: 10%-18% p.a.
  • Best For: Long-term capital needs

2. Working Capital Loan

Short-term funding for daily operations, inventory, salaries, overheads.

  • Amount: ₹50,000 to ₹5 crore
  • Tenure: 12 to 36 months
  • Interest: 12%-20% p.a.
  • Best For: Cash flow management

3. Equipment Financing

Loan to purchase machinery, vehicles, computers, office equipment.

  • Amount: Up to 90% of equipment value
  • Tenure: 3 to 7 years
  • Interest: 10%-16% p.a.
  • Best For: Asset acquisition

4. Business Car Loan (Commercial Vehicle)

Finance for business vehicles - cars, vans, trucks, delivery vehicles.

  • Amount: Up to 90% of vehicle cost
  • Tenure: 3 to 5 years
  • Interest: 9%-14% p.a.
  • Best For: Transportation needs

5. Startup Business Loan

Special schemes for new businesses and entrepreneurs under government programs.

  • Amount: ₹10 lakh to ₹1 crore
  • Tenure: 3 to 7 years
  • Interest: 14%-22% p.a.
  • Best For: New ventures, innovative businesses

6. Business Acquisition Loan

Finance to buy an existing business, franchise, or business assets.

  • Amount: Up to 70% of valuation
  • Tenure: 5 to 10 years
  • Interest: 11%-17% p.a.
  • Best For: M&A, franchise purchase

Business Loan Eligibility Criteria

For Proprietorship & Partnership Firms

  • Business Vintage: Minimum 2-3 years of operations
  • Annual Turnover: Minimum ₹10-15 lakh per year
  • Profitability: Profit in last 2 years
  • Credit Score: Minimum 650 (750+ preferred)
  • Age: 21-65 years
  • ITR: Last 2-3 years filed returns

For Private Limited & LLP

  • Company Age: Minimum 3 years (some lenders 1 year)
  • Annual Turnover: Minimum ₹40-50 lakh
  • Current Ratio: Above 1.33:1
  • Debt-Equity Ratio: Below 3:1
  • Director's CIBIL: 700+ for all directors
  • Audited Financials: Last 2-3 years

For Startups (Under 2 Years)

  • Business Plan: Detailed plan with projections
  • Funding History: Prior angel/VC funding helps
  • Promoter's Experience: Industry expertise required
  • Collateral: Often required or higher interest
  • Guarantor: Personal guarantee mandatory

Documents Required for Business Loan

Business Documents

  • Business Registration: Certificate of incorporation, GST registration, Shop Act license
  • Financial Statements: Last 2-3 years audited P&L, balance sheet
  • ITR: Income tax returns for last 2-3 years with computation
  • Bank Statements: 12 months current account statements
  • Sales Invoices: Recent 6 months invoices
  • Existing Loan Statements: If any running loans

Personal Documents (for Proprietors/Partners/Directors)

  • Identity Proof: Aadhaar, PAN, Passport
  • Address Proof: Aadhaar, utility bills, rental agreement
  • ITR: Personal income tax returns
  • Bank Statements: Personal account (6-12 months)
  • Photographs: Passport size photos

Collateral Documents (if applicable)

  • Property Papers: Title deed, approved plan, tax receipts
  • Valuation Report: From approved valuers
  • Encumbrance Certificate: For secured loans

Frequently Asked Questions

How to calculate business loan EMI?
Use formula: EMI = [P × R × (1+R)^N] / [(1+R)^N - 1], where P = loan amount, R = monthly interest rate (annual/12/100), N = months. Example: ₹10L at 12% for 36 months: R = 12/12/100 = 0.01. EMI = [1000000×0.01×(1.01)^36]/[(1.01)^36-1] = [1000000×0.01×1.4308]/[0.4308] = ₹33,214. Total = ₹33,214×36 = ₹11,95,704. Interest = ₹11,95,704 - ₹10,00,000 = ₹1,95,704. Use free online business loan calculators for instant results with amortization schedules.
What is a good interest rate for small business loan?
Good business loan rates range 9-15% p.a. in India. Banks: 8.75-14% (SBI, BOB, Canara). Private banks: 10.75-18% (HDFC, ICICI, Axis). NBFCs: 14-22% (Bajaj, L&T). Rate factors: Business vintage (3+ years gets lower rates), credit score (750+ essential for best rates), turnover (higher turnover = lower rates), collateral (secured loans 3-5% cheaper), loan amount (larger amounts may get better rates). Startups pay 16-25%, established businesses 9-14%. Government schemes (MUDRA, MSME) offer 8-12%. Always compare multiple lenders. Negotiate using good financials and credit history.
What is the maximum loan amount for small business?
Small business loan amounts range ₹50,000 to ₹50 crore depending on business size and lender. Limits: MUDRA loans (micro businesses): Up to ₹10 lakh. MSME loans: ₹10 lakh to ₹10 crore. Working capital: ₹50,000 to ₹5 crore. Term loans: ₹1 lakh to ₹50 crore. Equipment finance: Up to 90% equipment cost. Loan quantum based on: Annual turnover (typically 20-40% of yearly revenue), monthly profit (EMI shouldn't exceed 40% of profit), existing debt (total debt ratio considered), collateral value (up to 70-80% LTV), business vintage and credit score. Example: ₹50L annual turnover may qualify for ₹10-20L loan.
Can startup get business loan without collateral?
Yes, startups can get unsecured business loans up to ₹25-50 lakh, but at higher interest (16-25% p.a.). Options: MUDRA Shishu/Kishor loans (up to ₹10L, no collateral). CGTMSE scheme (up to ₹2 crore, government guarantee). Startup India scheme (preferential loans). NBFC unsecured loans (₹10-50L). Requirements: Detailed business plan with projections, promoter's personal guarantee, 700+ credit score, industry experience, some revenue traction, angel/VC funding (helps). Challenges: Higher interest rates, lower loan amounts, stricter documentation, personal assets may be considered. Alternatives: Venture debt, equity funding, business credit cards. Collateral required for loans above ₹50 lakh typically.
What is business loan repayment period?
Business loan tenure ranges 12 months to 15 years depending on loan type. Working capital: 12-36 months (short-term needs). Equipment loans: 3-7 years (aligned with asset life). Term loans: 3-10 years (for expansion, purchase). Commercial vehicle: 3-5 years. Business acquisition: 5-10 years. Real estate loans: 10-15 years. Tenure factors: Loan purpose (longer for assets, shorter for working capital), business cash flow (higher = shorter tenure possible), EMI affordability (longer tenure = lower EMI but higher interest), age of borrower (loan must close before 65-70 years). Example: ₹10L at 12%: 24m = ₹47,073 EMI, 36m = ₹33,214 EMI, 60m = ₹22,244 EMI. Choose based on cash flow vs. total cost preference.
Is business loan interest tax deductible?
Yes, business loan interest is 100% tax deductible as business expense under Income Tax Act Section 37. Eligible deductions: Interest paid on term loans, working capital interest, equipment finance interest, overdraft interest charges, processing fees. How to claim: Show interest paid in P&L statement as financial expense, claim deduction while calculating taxable income, maintain proper loan documents and payment records, include in ITR under business income section. Not deductible: Principal repayment (no tax benefit). Depreciation separate: Can claim depreciation on assets bought with loan. Example: Paid ₹2L interest annually, ₹10L profit. Taxable income = ₹10L - ₹2L = ₹8L. Saves ~₹60K tax (30% slab). Consult CA for proper documentation and ITR filing.
How long does it take to get business loan approved?
Business loan approval time: Banks: 7-21 days (PSU banks longer, private banks faster). NBFCs: 3-7 days (faster but costlier). Online lenders: 24-72 hours (quickest approval). Timeline breakdown: Application submission: 1 day, Document verification: 2-5 days, Credit assessment: 3-7 days, Business evaluation: 3-5 days, Sanction: 1-2 days, Disbursal: 1-3 days. Faster approval factors: Complete documentation ready, high credit score (750+), established business (3+ years), strong financials, existing relationship with bank, lower loan amounts, secured loans. Delays caused by: Incomplete documents, poor credit history, complex business structure, property verification (secured loans), multiple clarifications needed. Pre-approval process: Some banks offer in-principle approval in 2-3 days.

How to Get Best Business Loan Rates

Improve Credit Score

Maintain CIBIL score above 750 for best rates. Pay all EMIs on time, reduce credit utilization, fix errors in credit report.

Show Strong Financials

Higher turnover, consistent profitability, healthy current ratio, and low debt-equity ratio get better rates.

Provide Collateral

Secured loans get 3-5% lower interest than unsecured. Consider pledging property, fixed deposits, or equipment.

Compare Multiple Lenders

Check rates from 5-7 banks/NBFCs. Even 1% difference saves lakhs over loan tenure.

Negotiate Terms

Use competing offers to negotiate better rates, lower processing fees, and flexible prepayment terms.

Leverage Government Schemes

MUDRA, MSME, Startup India, and CGTMSE schemes offer subsidized rates 2-4% lower than market.

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