If you’re looking to expand your business or purchase new equipment, then the Axis Bank Business Loan could be an ideal option. The bank offers business loans of up to ₹ 75 lakh at competitive interest rates. However, before you get started with the loan process, getting a better understanding of your EMIs to be paid against the loan should be on your priority list. Use the Axis Bank Business Loan EMI calculator to get a precise idea of the monthly EMI. This way, you can plan your monthly finances around your loan repayment schedule.
Axis Bank Business Loan calculator has been designed to help potential customers to plan their loans in a more efficient manner, considering the other household or daily expenses. The calculator requires only a few basic Axis Bank Business Loan details such as the interest rate, the desired loan amount, and the loan tenure. The calculator provides instant results after you have furnished the required details.
Features and Benefits of Axis Bank Business Loans Calculator
Besides just calculating the monthly EMI, the Business Loan EMI Calculator Axis Bank allows you to determine various other things such as the loan amortisation schedule, outstanding balance, comparing business loan EMIs with other lenders, etc. Given below are some of the features of the Axis Bank Business Loan Calculator:
- Calculate EMIs with Different Amounts and Tenures: You can compare different EMI amounts on the Axis Bank Business Loan Calculator with different loan amounts and tenures. However, you must first confirm the interest rate on the loan for computing the EMI. Currently, Axis Bank offers loan offers with interest rates starting at 11%.
- Compare Axis Bank Business Loan EMI: The calculator provides you with an accurate estimation of your business loan EMIs compared to other banks with different loan amounts and tenures. You can leverage this information to choose the most affordable option with respect to loan amount and repayment schedule.
- Obtain Detailed Amortisation Schedule: The Axis Bank Business Loan EMI calculator helps you determine the division of the total EMIs into principal and interest repayment at distinct intervals throughout the loan term. The borrower can get a detailed understanding of how much interest they are paying and the loan balance with each payment.
- Determine the Outstanding Balance: Axis Bank Business Loan calculator helps in calculating the remaining loan term for the outstanding balance at any time of the loan term. Hence, it can help you reduce loan tenure by prepayment or foreclosure or to obtain a loan at a lower interest rate with a balance transfer.
Axis Bank Business Loan EMI Calculator Formula and How It Works
Once you have obtained a loan from Axis Bank, you will be required to repay the loan in the form of EMI payments. This makes it important for the borrower to properly understand how the EMI is calculated. In case you don’t have access to the Axis Bank Business Loan interest rate calculator or EMI calculator, you can use a mathematical formula for calculating the EMI to be paid monthly.
The formula for calculating the Axis Bank Business Loan EMI is –[P x R x (1+R) ^ N]/[(1+R) ^ (N-1)]
- P is the loan principal;
- R is the rate of interest on a monthly basis;
- N is the loan repayment tenure in months.
Things to Consider While Calculating Axis Bank Business Loan EMI
Before you head over to the Axis Finance Personal Loan calculator and start exploring your loan options, you must consider a few factors that affect the EMI on the loan. Some of the factors include the loan amount, tenure of the loan for which you are availing the loan, and the rate of interest. Given below is how each of these elements influence the EMIs
- Loan Amount: Usually, larger loan amounts attract high interest rates. This means that the bigger the loan amount, the higher will be the EMI amount. You can adjust for this by opting for a lower loan amount according to your financial requirements.
- Interest Rate: The higher the interest rate, the more would be the EMI amount. Higher interest rates tend to add up in the long run and add to the cost of the loan. Hence, before obtaining the business loan, you must use the Axis Bank Business Loan Calculator to compare business loan rates and calculate EMI online.
- Loan Tenure: The EMI payable on Axis Bank Business Loan depends mainly on the loan tenure. The shorter the loan tenure, the lower the interest amount and hence, the EMI amount payable and vice-versa.
Comparison of Axis Bank Business Loan with Other Lenders
Glance through the table below to understand the comparison of Axis Bank's business loan interest rate with its competitors.
|Axis Bank||11.5% onwards|
|HDFC Bank||11.90% – 21.35% p.a.|
|Kotak Mahindra Bank||16% – 19.99% p.a.|
|IDFC First Bank||14.50% onwards|
|L&T||10.75% - 20.5% p.a.|
|IIFL Finance||11.75% – 25.75% p.a.|
|Lendingkart Finance||1.5% – 2% per month|
|ICICI Bank||18% onwards|
|RBL Bank||17.50% – 25% p.a.|
|ZipLoan||1% – 1.5% per month (Flat ROI)|
|Tata Capital Finance||19% p.a. onwards|
|Bajaj Finserv||17% p.a. onwards|
|NeoGrowth Finance||19% – 24% p.a.|
|Fullerton Finance||17% – 21% p.a.|
|FlexiLoans||1% per month onwards|
|Hero FinCorp||Up to 26% p.a.|
|Indifi Finance||1.5% per month onwards|
Business Loan Amortisation Schedule
Loan amortisation refers to the procedure of scheduling out a fixed-rate loan into equal payments. The amortisation schedule typically breaks the calculation of principal and interest amount to be paid monthly in form of EMIs.
In clearer terms, the share of interest and principal amount change with every month’s EMI. However, the former keeps on decreasing, and the latter keeps on increasing. As a result, if you wish to repay your loan in the first few years, you will discover that you have paid just a little proportion of the principal amount.
Let us understand it well with the help of an example.
Suppose that you have obtained an Axis Bank Business Loan of ₹ 15,00,000 for 5 years at an interest rate of 11.5% p.a. Therefore, the monthly EMI payable on this amount would be ₹ 32,989 and the total annual EMI would be ₹ 3,95,868. This can be easily calculated using the Axis Business Loan calculator.
The table given below depicts the amortisation schedule for the principal loan amount of ₹ 15,00,00 for 5 years at an interest rate of 11.5%. We have used the Axis Business Loan EMI calculator to design the schedule.
|Year||Opening Balance||Interest paid during the year||Principal repaid during the year||Closing Balance|
|1||₹ 15,00,000||₹ 1,60,342||₹ 2,35,525||₹ 12,64,475|
|2||₹ 12,64,475||₹ 1,31,783||₹ 2,64,084||₹ 10,00,391|
|3||₹ 10,00,391||₹ 99,760||₹ 2,96,107||₹ 7,04,285|
|4||₹ 7,04,285||₹ 63,854||₹ 3,32,012||₹ 3,72,272|
|5||₹ 3,72,272||₹ 23,595||₹ 3,72,272||0|
A Quick Way to Get a Business Loan from Axis Bank
If you are an Axis Bank’s existing customer and have maintained a good relationship with the bank, then obtaining a business loan from Axis Bank would be quick and hassle-free. With minimal documentation, your application for a loan would be approved instantly after document verification.
However, if you are a new customer, you can visit Axis Bank’s official portal, signup, and apply for a business loan with the required documents. Fill up the loan application form correctly to avoid any kind of rejection. Once your documents are verified, the bank will disburse the loan shortly.
Another way to get a quick business loan from Axis Bank is to visit the nearest branch. Obtain a business loan application form, fill it up and submit it along with all the required documents. The loan amount will be sanctioned and disbursed as soon as the documents have been verified.
Note: The applicants must ensure that their CIBIL score is 750 or above and that they haven’t been on the defaulter’s list.
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Frequently Asked Questions (FAQs)
How much business loan can I get from Axis Bank?
With Axis Bank, you can get up to ₹ 75 lakh of the business loan without pledging on any security or collateral.
Are there any loan processing charges on Axis Bank's business loan?
Yes, the bank levies a processing charge of up to 2.00% of the loan amount + applicable taxes.
What is the tenure of the Axis Bank Business Loan?
The loan tenure of Axis Bank Business Loan ranges from 6 months to 36 months.
What is the EMI for a 20 lakhs business loan by Axis Bank?
If you avail of a business loan of ₹ 20 lakhs from Axis Bank for 3 years at the lowest interest rate of 11%, then your monthly EMI would be ₹ 98,216.
What should be the minimum business turnover to get a business loan from Axis Bank?
A business should have a minimum turnover of at least ₹ 30 lakhs to be eligible for an Axis Bank business loan.