Urban Money

IDFC Business Loan Calculator

  • 50 K
  • 1 Cr
Years
  • 1
  • 5
%
  • 8
  • 25

Monthly Loan EMI

Payment Breakdown:

Principal Amount

₹15,00,000

Interest Payable

Total Amount Payable

IDFC Business loan calculator is a self-help tool that helps the user to compute the EMI amount of the loan one might take to facilitate business operations. The EMI is the equated monthly instalments the borrower must pay against their loan. EMI is the sum of the interest, i.e. charges levied for the loan and principal, i.e. instalments on the business loan. The tenure to repay the business loan from the IDFC Bank generally ranges around 48 months and the lowest rate of interest offered is 19% per annum.

Benefits of Calculating IDFC Business Loan 

The IDFC Business loan calculator is an AI-based high-tech tool that allows users to evaluate the EMI amount they would have to bear against the loan. It provides the following benefits to the user.

  • Accessibility

The IDFC Business loan calculator provides easy accessibility. You can find it online easily, and the calculator also features a straightforward interface that allows first-time users to evaluate the EMI amount using simple steps.

  • Accuracy

The IDFC Business loan calculator is an online tool that provides the user with accuracy while deriving the EMI amount. The calculator saves the user from manual calculations prone to miscalculations and errors. The calculator user also saves much time when computing the EMI amount.

  • Comparison

The IDFC Business loan calculator lets users mention multiple values on the featured fields. The calculator provides the user to make the adjustments and enter multiple values to determine the EMI amount they can manage. They can also mention the various tenures and diverse rates of interest offered by different banks to obtain the best deal in the market.

IDFC Bank Business Loan EMI Calculator Formula 

The IDFC Bank business loan calculator employs the following formula to derive the EMI amount on the Business Loan.

P* r*  (1+r) ^n/ ([1+r]^n}-1)

Here,

  • P is the principal loan amount. This business loan amount from the IDFC Bank ranges from Rs 1,00,000 to 9,00,00
  • r is the rate of interest on the business loan. The interest rate offered by the bank on unsecured business loans currently commences from 16% per annum.
  • n is the loan tenure determined to repay the loan. The lengthiest tenure offered by the IDFC bank on the business loan is 48 months.

How does the IDFC Business Loan Calculator Function?

The IDFC Business loan calculator makes the computation of the business loan convenient owing to its straightforward interface. The user must follow the steps below to calculate the loan amount.

  • The user needs to mention the loan amount they want to obtain from the bank for their business operations. The IDFC Bank allows the user to borrow a business loan amount of up to 9 Lakhs.
  • The user must then mention the interest rate the bank would charge on the loan. They can mention a ballpark figure of the rate of interest they think the bank will offer them.
  • The user would finally mention the tenure of the loan. The IDFC Bank provides a tenure of up to 48 months on business loans.
  • After filling in the fields mentioned above on the calculator, the calculator will enlighten the user with the payable EMI amount with respect to the values filled almost immediately. 

Contents of the IDFC Bank Business EMI Loans Calculator

The IDFC business loan calculator entail the following features: 

  • Loan Amount 

The loan amount refers to the business loan amount borrowed by IDFC Bank. The loan amount feature symbolises the amount the calculator user might want to obtain from the IDFC bank to enable their business operations. The IDFC Bank provides collateral-free funding to businesses. 

  • Rate of Interest 

The interest rate highlights the amount the IDFC Bank will charge from the loan borrowers. The rate is the charge levied by the bank for giving the applicant access to their funds. The bank usually charges interest rates from 16% per annum to 24% per annum. The rate of interest is determined after evaluating various parameters related to the business. 

  • Loan Duration 

This feature examines the tenure the borrower might take to repay the loan fully. The loan tenure is important in determining the EMIs against the business loan. The repayment tenure for IDFC Bank is up to 48 months (4 years).

Things to Consider while Calculating IDFC Business Loan

The borrower must consider the following factors while calculating the EMI amount on the IDFC Business Loan Calculator:

  • Loan Amount: The higher the loan amount; the higher would be the EMIs on the business loan.
  • Interest Rate: A high-interest rate on the business loan would accentuate the cost of the business loan.
  • Tenure: A lengthy tenure would reduce the EMI amount significantly. 

Business Loan Amortisation Calculator

The IDFC business loan calculator gives the user a detailed account of the repayment plan against the business loan. The amortisation table provides the breakdown of the EMI between the principal and interest. The IDFC Bank provides an amortisation schedule to the borrowers to give them an overview of the loan repayment schedule. Additionally, it gives insights into the proportion of the interest and principal throughout the tenure.

Let’s take an example for a better understanding. Suppose you want to take a business loan of Rs 5,00,000 at an interest rate of 19% per annum. The tenure of the loan is determined at 24 

months. The amortisation for such a loan would reflect the following values.

Month  EMI  Interest  Principal  Outstanding Balance 
Rs 25,204.31  Rs 7,917  Rs 17,288  Rs 482,712
2 Rs 25,204.31  Rs 7,643  Rs 17,561 Rs 465,151
3 Rs 25,204.31  Rs 7,365  Rs 17,839 Rs 447,312
4 Rs 25,204.31  Rs 7,082  Rs 18,122 Rs 429,190
5 Rs 25,204.31  Rs 6,976 Rs 18,409 Rs 4,10,718
6 Rs 25,204.31  Rs 6,504 Rs 18,700 Rs 3,92,081
7 Rs 25,204.31  Rs 6,208  Rs 18,996 Rs 3,73,084
8 Rs 25,204.31  Rs 5,907 Rs 19,297 Rs 3,53,787
9 Rs 25,204.31  Rs 5,602  Rs 19,603 Rs 3,34,184
10 Rs 25,204.31  Rs 5,291 Rs 19,913  Rs 3,14,271
11 Rs 25,204.31  Rs 4,976 Rs 20,228 Rs 2,94,043
12 Rs 25,204.31  Rs 4,656  Rs 20,549  Rs 2,73,494
13 Rs 25,204.31  Rs 4,330 Rs 20,874 Rs 2,52,620
14 Rs 25,204.31  Rs 4,000 Rs 21,204 Rs 2,31,416
15 Rs 25,204.31  Rs 3,664  Rs 21,540  Rs 2,09,876
16 Rs 25,204.31  Rs 3,323  Rs 21,881 Rs 1,87,994
17 Rs 25,204.31  Rs 2,977  Rs 22,228 Rs 1,65,767
18 Rs 25,204.31  Rs 2,625  Rs 22,580 Rs 1,43,187
19 Rs 25,204.31  Rs 2,267  Rs 22,937  Rs 1,20,250
20 Rs 25,204.31  Rs 1,904  Rs 23,300 Rs 96,950
21 Rs 25,204.31  Rs 1,535  Rs 23,669  Rs 73,280
22 Rs 25,204.31  Rs 1,160  Rs 24,044 Rs 49,236
23 Rs 25,204.31  Rs 780  Rs 24,425 Rs 24,811
24 Rs 25,204.31  Rs 393  Rs 24,811 Rs 0 

Tips to Obtain a Business Loan from the IDFC Bank 

The borrowers can implement the following steps to obtain a business loan from IDFC Bank smoothly without any hassle.

  • The applicant should try to reduce the loan amount asked from the bank as much as they can before applying. As the nature of the business loan is unsecured or collateral-free, the banks are hesitant to disburse a large amount for borrowing.
  • The business loan applicant should also evaluate their businesses' finances and their credit score, as these parameters are factored in to determine the interest rates on the business loans.
  • The applicant is also required to do some bookkeeping where they should assess if they can manage the monthly EMIs of the business loan with their monthly budget. The repayment tenure on the business loan is comparatively short and the interest rate is comparatively high. They can also employ IDFC Business Loan Calculator to compute a manageable EMI amount.

Frequently Asked Questions (FAQs)

How do I download my IDFC business loan statement?

The user can easily view and download their business loan statement from the bank’s state-of-the-art net banking services. They are just required to log in to their account so they can easily navigate towards their business loan statement on the website.

What is the rate of interest of a business loan in IDFC Bank?

The current interest rate charged by the bank on business loans is 18% per annum. The applicant can employ the IDFC Business Loan calculator to determine the EMI amount.

Can I get a business loan of 10 lakhs from IDFC bank?

The loan amount offered by the bank varies from application to application. The bank evaluates the applicant on various parameters before approving the loan application. Generally, the bank offers up to Rs 5,00,000 to the applicant for a small business loan.

How much business loan can I get from IDFC bank on a salary of Rs 20,000?

The loan amount offered for a business loan varies with respect to the application. However, an individual can get a personal loan of up to Rs 5,40,000 if their monthly income is Rs 20,000.