Business Loan EMI Calculator
Business loans in India typically run for 1 to 5 years at 11-18% p.a. Because the rate is higher than a home loan, total interest cost matters even more. Use this calculator to model the EMI before you sign a facility letter.
By Nikhil Rao·Tools & Data·reviewed by editor
Last updated: 15 June 2025
₹
₹1,00,000₹2,00,00,000
%
9%25%
years
1 yr7 yrs
Monthly EMI
₹54,653
Total Interest
₹6,23,342
Total Payment
₹26,23,342
Principal
Interest
How to size a business loan EMI
A safe rule of thumb: total EMIs across all business borrowings should stay under 40% of your monthly free cash-flow (revenue minus fixed costs minus taxes). At ₹20 lakh, 14%, 4 years, EMI is roughly ₹54,679 - your business needs to comfortably generate at least ₹1.4 lakh in free monthly cash-flow.
Rate benchmarks to use
- 11-13% — established MSMEs, HDFC/SBI, strong financials
- 13-16% — typical private bank rate for mid-vintage MSMEs
- 16-19% — NBFC-lender rate for younger businesses or thin file
- 20%+ — fintech / unsecured loans on 12 months of GST only
Tips to lower total interest
- Choose the shortest tenure your cash-flow allows
- Negotiate the processing fee down to 1-1.5%
- Prefer term loans over cash-credit if usage will be steady
- Consider CGTMSE-backed loans for up to ₹5 crore — no collateral, lower rates