Secured Business Loan EMI Calculator

In today's fast-paced and digitally-driven world, the lending landscape has experienced a remarkable transformation over the past few years. The rapid global embrace of the digital revolution has played a pivotal role in reshaping how businesses access financial support. Among the valuable tools empowering entrepreneurs to make informed decisions is the Secured Business Loan EMI Calculator. 

Banks and non-banking finance companies (NBFCs) disbursed 12 times more loans through digital channels between 2017 and 2020, highlighting the increased accessibility and convenience of obtaining business loans.   

Identifying the optimal financing option for your company's needs and ensuring manageable repayment terms is crucial for conducting business. You may quickly determine the Equated Monthly Installments (EMIs) for your preferred loan amount with our Loan EMI Calculator. Secured Business Loan EMI Calculator enables you to effectively arrange your finances. It equips you to evaluate several loan choices and their related EMIs, whether you want to grow your business, buy new equipment, or address a working capital shortfall.   

What is a Secured Business Loan? 

Secured business loans are a popular funding option among businesses. These loans are backed by a personal guarantee or pledging assets or property as collateral. By providing collateral, borrowers provide reassurance to the lender that they will repay the loan within the agreed-upon tenure. If the borrower cannot repay the loan, the lender has the right to take possession of the collateral. 

Due to the security provided by collateral, secured loans typically come with longer repayment terms when compared to unsecured loans. Additionally, borrowers may benefit from slightly lower interest rates. These factors make secured business loans an attractive choice for businesses seeking financing while offering lenders a level of assurance. 

What is a Secured Business Loan EMI Calculator? 

Efficient financial management is crucial for maintaining a stable monthly budget and ensuring timely payment of your business loan EMIs. Planning your business loan repayment requires careful consideration, especially for secured loans. To determine the necessary figures, utilising an EMI calculator is highly recommended. With a Secured Business Loan Calculator, you can conveniently get the total interest, the amount payable, and EMIs for the loan tenure. 

By entering three essential inputs - the desired loan amount, interest rate, and tenure - applicants can swiftly assess the monthly EMI payment. This EMI calculator for secured business loans empowers borrowers to make informed decisions and gain clarity on their repayment obligations. Understanding the financial commitments beforehand can help you maintain financial stability and successfully manage your business loan. 

How Does a Secured Business Loan EMI Calculator Work? 

The Shriram Finance secured business loan EMI calculator is an ideal tool for accurately calculating the secured business loan EMI. 

The EMI calculator for secured business loans considers three key components: 

Loan Amount: This refers to the desired loan amount you wish to apply for to avail of the Secured Business Loan. If you opt for the Regular Secured Business Loan type, you can access a maximum loan amount of up to ₹30 Lakhs. 

Repayment Tenure: This denotes the timeframe during which the entire loan amount must be repaid. With high-value loans such as the Secured Business Loan, you enjoy increased flexibility in choosing the repayment tenure. As a borrower, you can select a loan tenure of up to 60 months. This factor plays a crucial role in estimating the Secured Business Loan EMI. 

Interest Rates: The third important factor is the interest rate applicable to your business loan amount. The rate varies based on factors such as income, credit score, business financial statements, and payback capability. 

How to Use a Shriram Finance Secured Business Loan EMI Calculator? 

To calculate secured business loan EMI using Shriram Finance Secured Business Loan EMI Calculator, you only need to provide three essential inputs: the principal loan amount, the interest rate, and the tenure of the commercial loan. Once you have entered these details, the calculator swiftly generates the monthly EMI, total interest, and overall loan cost, providing instant results. 

Here's how you can use the calculator: 

• Determine the amount you require for your business. 
• Select a suitable loan tenure that aligns with your financial needs. 
• Enter the interest rate offered, depending on your specific business type. 
• Click the 'Calculate' button to initiate the calculation process. 
• Within seconds, you will receive your monthly EMI and other essential loan details, allowing you to make informed financial decisions promptly. 

How Do I Calculate Secured Business Loan? 

The Secured Business Loan Calculation Formula employs the given equation to determine the Equated Monthly Installment (EMI) for a business loan: 

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

In this formula, the variables represent the following: 

'The Principal Amount of the Business Loan is denoted by P'. 

The monthly interest rate is indicated by the letter "R." 

The loan tenure or term (in months) is denoted by the letter "N." 

Secured Business Loan EMI Calculation Formula 

Let's consider an example of secured business loan EMI calculation using a secured business loan calculator in India: 

Assume you have obtained a business loan of ₹10 lakhs with an annual interest rate of 15% for 3 years. 

A calculator for business loans will first divide the yearly interest rate by 12 to convert it to a monthly rate after you enter these figures. In light of this, the applicable monthly interest rate would be 15/12, or 1.25%. 

The loan tenure will be converted from years to months by the calculator. This would result in a 36-month term for the business loan, or 3 times 12 months. 

Now, the EMI formula in the business loan calculator will use the following values: 

EMI = [10,00,000 x 1.25/100 x (1+1.25/100) ^ 36 / [(1+1.25/100) ^ 36 – 1) 

After calculating, the resulting EMI would amount to ₹34,665, with a total interest of ₹2,47,952.  

Secured business loan calculation in Excel is another option to determine the EMIs applicable to your loan.  

Benefits of Secured Business Loan EMI Calculator 

• Instant results: Save time by instantly business loan EMI calculations using an online calculator. 
• Convenient accessibility: Enjoy the convenience of accessing a business loan EMI calculator online from anywhere, whether at home or in the office. 
• Error-free accuracy: Ensure precise calculations without the risk of manual errors, thanks to the reliable results provided by a business loan EMI calculator. 
• Informed decision-making: Compare EMIs across multiple lending options effortlessly, enabling you to select the best loan option for your business. 
• Smart financial planning: Knowing your EMIs in advance allows you to manage and plan your business loan repayments efficiently. It encourages prudent money management.  

Eligibility for Secured Business Loan EMI 

Business loans are provided based on specific eligibility criteria. Here are the details: 

Who Can Apply? - Partnership firms, Proprietorship firms, Pvt Ltd companies, Public Ltd companies, and LLP. 

Age - Applicants should be between 21 and 70 years of age, ensuring that the age limit is within 70 years at the loan's maturity. 

Occupation - Self-employed people, company owners, or proprietors having at least 3 years of business experience are eligible. 

Documents Required for Secured Business Loan 

• Bank statement (6 months) 
• Business registration proof 
• Business PAN 
• Applicant PAN 
• Selfie Photograph   

Conclusion 

A secured business loan can help you gain immediate access to funds, whether it is to expand your business or meet short-term working capital requirements. Before pledging collateral and availing of this loan, it is important to use the secured business loan calculator in India. You can also perform secured business loan calculations in Excel.  

Calculating your EMIs in advance helps you maintain a stable monthly budget and make timely repayments, thereby ensuring that your pledged asset is safe while giving your business a financial boost.