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Monthly Payment (EMI)
₹49,919Total Interest Payable
₹69,80,558Total Payment
₹1,19,80,558RBL Bank Business Loan EMI Calculator
The RBL business loan EMI calculator is a tool that can be used to compute the business loan EMI with ease. Knowing the equated monthly installment (EMI) is equally important as knowing about the interest rate, fees, or charges related to the loan deal. The business loan EMI calculator can be used to compute the EMIs for both short-term and working capital loans.About RBL Bank Business Loan EMI Calculator
- Why Should You Take A Business Loan From RBL Bank
- Comparison of RBL Business Loan With Other Business Loan Lenders
- Parameters That Affect The RBL Business Loan EMI Computation
- How Is The RBL Business Loan EMI Computed
- Steps To Use The RBL Business Loan EMI Calculator
- Benefits of Using The RBL Business Loan EMI Calculator
- RBL Business Loan Amortization Schedule
- Conclusion
- FAQs of RBL Bank Business Loan EMI Calculator
Why Should You Take A Business Loan From RBL Bank
- The borrower can avail of a loan amount that has a wide range between Rs. 10,00,000 and Rs. 35,00,000.
- Flexible repayment tenure ranges between 12 months to 36 months
- RBL business loans do not require collateral or security.
Comparison of RBL Business Loan With Other Business Loan Lenders
Bank/NBFC | Interest Rate |
|---|---|
Bank/NBFC | Interest Rate |
RBL Bank | 17.50% to 25% per annum |
MCapital | 1.75% per month |
ICICI Bank | 18% onwards |
IndiFi Finance | 1.5% per month onwards |
SBI | 11.30% |
Flexiloans | 1% per month onwards |
Axis Bank | 11.5% onwards |
Lendingkart | from 1.25% per month |
Protium | 18% |
SME Corner | 18% |
AYE Finance | 22% |
Kotak Mahindra Bank | 16% to 19.99% per annum |
HDFC Bank | 11.90% to 21.35% per annum |
BajajFinserv | 17% per annum onwards |
Hero FinCorp | Upto 26% per annum |
Fullerton Finance | 17% to 21% per annum |
Neogrowth Finance | 19% to 24% per annum |
ZipLoan | 1% to 1.5% per month (Flat ROI) |
Tata Capital Finance | 19% per annum onwards |
IIFL Finance | 11.75% to 25.75% per annum |
L&T | 10.75% to 20.5% per annum |
IDFC First Bank | 14.50% onwards |
DHFL | 17% per annum |
Parameters That Affect The RBL Business Loan EMI Computation
Principal Amount:
This is the amount borrowed by the applicant. Naturally, when the loan amount is higher, the EMIs will be higher and when the loan amount is lower, the EMIs will be lower. Therefore the principal is responsible for variations in the EMI.Rate of Interest:
A lender will give you a business loan only at a particular interest rate. They will offer you an interest rate based on your credit score and financial position of the business. A good credit score will help you get an affordable interest rate. If your interest rate is higher, EMIs will be higher and if the interest rate is lower, EMIs will be lower.Loan Tenure:
The loan tenure will have a high impact on the business loan EMI. For a longer loan tenure, the installment amount will be lower as there are more installments. But, the interest outgo over the period will be higher. Whereas, if the loan tenure is shorter, the amount payable in each installment will be more as there are less number of installments. But, the outgo of interest over the period will be less.How Is The RBL Business Loan EMI Computed
Here is a formula for computing the RBL business loan EMI
EMI = P x R x (1+R)^n/((1+R)^n-1)
P represents the principal amount
R is the rate of interest
“n” is the tenure given by the bank
Let us see this with an example:
P = 30 Lakhs, R = 5%, N = 5 years
Monthly EMI payment = Rs. 56,614
This formula is manual and involves cumbersome calculations. It may not be accurate and will be time consuming. The following are the drawbacks of using a formula for computing the business loan EMI
- Time-Consuming: The manual method will take a lot of time and will demand a lot of focus and attention from your side.
- Probability for Errors: When you compute the business loan EMI manually, you are more prone to errors. A small distraction can lead to erroneous EMIs. This may cost you heavily since defaulting on your business loan is not the same as defaulting on your personal loan or any other loan. So, it is better to use the RBL business loan EMI calculator online.
- Mathematical Expertise is Required: Mathematical expertise is required to use the above formula as you can see above. It is not easy to use and requires correct calculations at each step. So, it requires your complete attention.
- Lengthy Formula: The formula used for EMI calculation is too lengthy. It will be difficult for you to know the formula by heart and even a wrong number in a single step in the calculation will yield a faulty result for the step and will affect the subsequent steps. Thus, the end result will be erroneous and inaccurate.
Therefore, it is ideal to use a business loan EMI calculator. All you have to do is enter the loan amount, tenure, and interest rate. The result gets displayed instantly. Along with the EMI, the interest amount, and the total amount payable are also displayed. For the above example, the EMI calculator displays the interest amount as Rs. 396822 and the total amount payable as Rs. 3396822.
Steps To Use The RBL Business Loan EMI Calculator
Step 1: Place the sliders of the parameters - amount, interest rate, and tenure at the values required.
Step 2: The EMI, total interest amount, and the total amount payable (Principal plus interest) are displayed.
Benefits of Using The RBL Business Loan EMI Calculator
- Simple To Use: The RBL business loan EMI calculator is a simple online tool that can be used with ease and flexibility
- Easily Accessible: The RBL business loan EMI calculator can be accessed easily on your mobile phone, tablet, desktop, etc.
- Accurate Calculations: Manual calculations are prone to errors and may be a risk for your business loan. So, it is ideal to use a business loan EMI calculator which will yield accurate figures.
- Quick Results: It yields the monthly EMI, total interest payable, and the total amount payable in seconds upon entering the interest, principal amount, and the tenure of the loan.
- Helps you choose the best loan amount and tenure: You can calculate the EMIs for various loan amounts and tenures keeping the rate of interest as constant. This will help you choose the most suitable loan tenure and amount for your business loan.
- You can compare the EMIs of various lenders: You can calculate the EMIs offered by various lenders and compare the interest rates provided. Then you can pick the lender who offers you the most favorable interest rate.
RBL Business Loan Amortization Schedule
The balance amount can be split into principal and interest payable at any point of time. This is called the amortization schedule or table. Given below is the amortization table for P = 30 Lakhs, R = 5%, N = 5 years.
Year | Principal | Interest | Balance Amount |
|---|---|---|---|
1 | Rs. 5,41,665 | Rs. 1,37,699 | Rs. 24,58,334 |
2 | Rs. 5,69,378 | Rs. 1,09,986 | Rs. 18,88,955 |
3 | Rs. 5,98,508 | Rs. 80,856 | Rs. 12,90,446 |
4 | Rs. 6,29,129 | Rs. 50,235 | Rs. 6,61,317 |
5 | Rs. 6,61,552 | Rs. 18,047 | Rs. 0 |
Conclusion
The RBL business loan EMI calculator is an easily available and efficient tool. You can know your business loan EMI instantaneously and conveniently.
FAQs of RBL Bank Business Loan EMI Calculator
1. Which are some of the best banks for business loans?
The RBL business loan EMI calculator is an easily available and efficient tool. You can know your business loan EMI instantaneously and conveniently.Some of the best banks are SBI, HDFC, ICICI, Citibank, IDFC, Kotak, Bajajfinserv, IndusInd Bank, Tata Capital, and Standard Chartered.
2. What is the difference between a business loan and commercial loan?
Small business loans will have lower funding amounts while commercial loans will have higher funding amounts given to medium-sized and bigger businesses. Any business that wants to get a commercial loan will have to get it sanctioned by a lender, such as a bank or another financial institution.
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