Typically 14%–22% p.a., up to 7 years
Business loan EMI calculator
Plan a business or MSME term loan: EMI, total interest, and what a good quarter's surplus does to the tenure.
Your loan details
₹20.00 L
Monthly reducing balance. 0% is supported.
Total tenure: 60 months (5 years)
Use this for tenures like 5 years 6 months.
Added to every EMI and applied straight to principal.
Monthly EMI
₹48,636
Loan closes in
5 years
Oct 2031
Total interest
₹9.18 L
₹9,18,167
Total payment
₹29.18 L
Principal ₹20.00 L
Shared links carry only the loan numbers you entered — never any personal details.
| Year | Interest | Principal | Balance |
|---|---|---|---|
| Year 1 | ₹2,99,781 | ₹2,83,852 | ₹17,16,148 |
| Year 2 | ₹2,50,882 | ₹3,32,751 | ₹13,83,396 |
| Year 3 | ₹1,93,559 | ₹3,90,075 | ₹9,93,322 |
| Year 4 | ₹1,26,360 | ₹4,57,273 | ₹5,36,048 |
| Year 5 | ₹47,585 | ₹5,36,048 | ₹0 |
ByeToEMI — Business loan statement
Loan amount ₹20,00,000 · Rate 16% p.a. · Tenure 60 months · EMI ₹48,636
Assumptions: monthly reducing balance, interest on the outstanding principal, first EMI next month, extra payments applied to principal in the same month, fees shown separately.
Total interest ₹9,18,167 · Total payment ₹29,18,167 · Closes in 5 years (Oct 2031)
ByeToEMI provides indicative calculations for educational and planning purposes. Actual lender calculations, charges, interest-rate changes and repayment schedules may differ. ByeToEMI is not a lender, loan broker or financial advisor.
These results are mathematical estimates. Your lender's EMI, fees, taxes and prepayment charges may differ. Read the full financial disclaimer.
How this calculator works
Unsecured business loans typically run 14% to 22% per year for 1 to 5 years; secured or MSME-scheme loans can be cheaper and longer.
Business cash flow is uneven, so lump-sum payments after a strong season often work better than a fixed monthly top-up. The prepayment planner handles both.
Processing fees, documentation and insurance are separate costs here, so the EMI reflects only principal and interest.
The formula used is the standard monthly reducing-balance EMI: EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the principal, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months. At 0% interest the EMI is simply P ÷ n.
A worked example
A ₹20,00,000 business loan at 16% per year for 60 months has an EMI of about ₹48,635.
Total interest across five years is roughly ₹9.18 lakh, taking the total outgo to about ₹29.18 lakh.
A ₹3,00,000 lump sum in month 12 alone saves roughly ₹2.1 lakh of interest and closes the loan about 8 months early.
Limitations you should know
- Overdraft, cash-credit and invoice-discounting facilities work on daily balances and are not modelled by an EMI schedule.
- GST on fees, collateral valuation costs and guarantee-scheme charges are excluded.
- Interest may be tax deductible as a business expense; that benefit is not reflected in these figures.
Frequently asked questions
- Should a business prepay debt or keep cash in hand?
- Keep enough working capital and a buffer first. Prepay with genuine surplus, comparing the loan rate against the return you expect from deploying the same money in the business.
- Is an EMI loan or an overdraft better?
- A term loan with EMIs suits a one-time investment such as machinery. An overdraft suits fluctuating working-capital needs because you pay interest only on the balance you use.
- What charges apply beyond interest on a business loan?
- Processing fees, documentation charges, insurance, and sometimes guarantee-scheme fees. Add them in the loan comparison tool to see the true total cost.
- Can I prepay an MSME loan without a penalty?
- Many floating-rate MSME term loans allow it, but fixed-rate and unsecured loans often carry a 2–5% foreclosure charge. Check your sanction letter before planning a lump sum.
Last reviewed: 1 September 2026
ByeToEMI provides indicative calculations for educational and planning purposes. Actual lender calculations, charges, interest-rate changes and repayment schedules may differ. ByeToEMI is not a lender, loan broker or financial advisor.