Plan a business, SME or MSME loan EMI with processing fee, tenure and interest. See monthly EMI, total interest, total cash outflow and a year-wise repayment schedule.
Monthly EMI
₹49,821
Total interest
₹2,93,573
Total cash outflow
₹18,08,573
EMIs + processing fee
Principal vs interest
| Year | Principal | Interest | Balance |
|---|---|---|---|
| Year 1 | ₹4,41,623 | ₹1,56,234 | ₹10,58,377 |
| Year 2 | ₹4,97,632 | ₹1,00,225 | ₹5,60,744 |
| Year 3 | ₹5,60,744 | ₹37,113 | ₹0 |
Processing fee may attract GST and some lenders also add documentation charges, insurance or foreclosure terms. Confirm the final sanction letter before committing.
Monthly business loan EMI is 49,821 rupees.
Business loans power millions of Indian small and medium enterprises (MSMEs) - funding everything from new equipment and raw material purchases to working capital cycles and expansion into new markets. With India's MSME sector contributing 30% of GDP and employing 11 crore people, business credit is the lifeblood of the economy. This calculator helps you plan EMI, total interest, and processing fees for any business loan - whether from public sector banks (SBI, BoB, PNB), private banks (HDFC, ICICI, Axis), MSME-focused NBFCs (Bajaj Finance, Lendingkart, FlexiLoans), or government schemes like PMMY/Mudra, Stand-Up India, MSME Credit Guarantee.
Indian business loan landscape: secured loans (with collateral like property, machinery, or LIC policy) attract lower rates of 9-13% from banks; unsecured working capital loans range 13-22%, with NBFCs sometimes touching 24%. Loan tenures are typically 1-5 years for working capital, 3-7 for term loans, and up to 10 for project loans. Mudra loans under PMMY (up to ₹10 lakh for micro enterprises) get preferential rates. Use this calculator to compare offers, check affordability, and decide whether to consolidate multiple business loans into one for simpler cash flow management.
Enter the loan amount required for working capital, machinery or expansion.
Add interest rate, tenure and processing fee.
Review monthly EMI, total interest and upfront fee.
Use the amortization schedule to understand annual principal and interest repayment.
Business loan EMI is calculated on a reducing balance. Every month, interest is charged on the outstanding principal and the rest of the EMI reduces principal. Processing fee is added separately because lenders collect it upfront.
EMI = P × r × (1+r)^n / ((1+r)^n - 1)
Standard EMI formula: EMI = P × r × (1+r)^n / ((1+r)^n − 1). P is principal, r is monthly rate (annual rate / 12 / 100), n is number of months. The formula assumes monthly compounding and equal monthly instalments. Each EMI is split between interest on outstanding principal and principal repayment. Early in tenure, most of the EMI is interest; later, principal repayment dominates.
Processing fee: typically 0.5-2% of loan amount, charged upfront. GST at 18% applies on the processing fee, adding ~18% to the fee itself. For a ₹20 lakh loan at 1.5% processing fee: ₹30,000 fee + ₹5,400 GST = ₹35,400 upfront. This is not part of EMI but is a real cost - factor it into total cost calculation. Some lenders also collect documentation charges, login fee, and credit appraisal fee (₹1,000-₹10,000) separately.
Total cost of business loan = Principal + Total Interest + Processing Fees + GST on fees + (occasionally) Pre-EMI interest if loan disbursed before EMI start date. Business loan interest is fully tax-deductible as business expense under Section 36(1)(iii) of Income Tax Act, so the effective post-tax cost for a 25% income tax slab business is roughly 75% of the nominal rate. This makes business loans tax-efficient compared to personal loans for entrepreneurs.
EMI: ₹51,256. Total interest: ₹3.45 lakh. Processing fee: ₹15,000 + GST ₹2,700 = ₹17,700. Total cost: ₹15 lakh + ₹3.45 lakh + ₹17,700 = ₹18.63 lakh. Effective rate after tax (25% slab): ~10.5%.
EMI: ₹86,949. Total interest: ₹12.17 lakh. Processing fee: ₹30,000 + GST ₹5,400 = ₹35,400. Tax deductibility on interest saves ~₹3 lakh over the tenure for a 25% slab business.
EMI: ₹10,748. Total interest: ₹1.45 lakh. Processing fee: typically waived for Mudra under PMMY. Best rate-fee combination available for micro enterprises with turnover up to ₹50 lakh.
Bank MSME loans often range from 9% to 16% depending on collateral, turnover, CIBIL score and scheme. NBFC loans can be higher.
No. Processing fee is usually paid upfront and may attract GST. This calculator shows it separately.
Yes, if you know the sanctioned amount, rate and tenure. Scheme-specific subsidies are not included.
For business use, interest is generally deductible as a business expense. Confirm with your CA for your entity type.
Every business - kirana store, SaaS startup, manufacturing unit - runs on four cycles: cash, inventory, depreciation and financing. Get any one wrong and the business runs out of money before it runs out of opportunity. This calculator addresses one piece of that puzzle the way a CA, CFO or operations manager would actually compute it.
Use it alongside the break-even, business loan, depreciation and inventory calculators to model your unit economics. For Indian businesses the depreciation calculator follows the Companies Act 2013 schedule (SLM and WDV); for financing it follows the same monthly reducing balance that PSU and private banks use.
The Business Loan Calculator is part of the Business suite on Online Calculator Tools, alongside 6 related calculators. All tools share the same UI patterns, the same privacy-first rendering (nothing is sent to a server), and the same commitment to showing the formula and assumptions behind every result.
