Looking for a loan to help expand your business? PNB offers MSME loans with repayment periods of up to five years. It provides the working capital you need to expand your operations.
It is imperative that you understand the total cost of the loan before committing to any deal. Punjab National Bank offers an EMI calculator on the official website that can help you determine the interest on the loan and your monthly payments. This way, you'll know exactly what you're getting into before applying for the loan.
PNB Business Loan Overview
Established on 19th May 1984, Punjab National Bank is one of the oldest banks under the administration of the Indian Ministry of Finance. The bank offers a range of financial services to various categories of entrepreneurs spanning small, medium, and large industries. It operates a universal banking system with 36,514 delivery channels, 10,528 domestic branches, and two international branches.
With an aim to support business capital needs, MSMEs can benefit from a safe, secure, and convenient banking experience. PNB offers tailored loans for small and medium-sized businesses characterized by minimal documentation, quick processing, and low interest rates.
A business loan is, to a great extent, dependent on the applicant's profile, creditworthiness, and financial stability. The bank offers tailored business loans designed to the specific needs of every business with an attractive interest rate ranging between 12.65% and 15.65%.
Benefits of PNB Business Loan EMI Calculator
The PNB business loan EMI calculator is an AI backed online tool that assists applicants in calculating the equated monthly installments on their business loans. The EMI calculator has replaced the complex and old-fashioned approach to calculating EMIs. It allows users to understand better how EMI works and how it will help them. Here are some of the benefits of the PNB business loan EMI calculator:
- The calculator helps you calculate the estimated EMI on your loan so that you can plan your budget accordingly.
- You can calculate EMIs for your business loan without having to spend time adding up the payments manually.
- It provides an accurate estimate, thereby eliminating the possibility of miscalculation.
Business Loan EMI Calculation Formula
A business loan EMI calculator is available on the Punjab National Bank's official website. You are required to enter the loan amount, the interest rate, and your loan tenure. The calculator will display the estimated results and amortisation schedule in a blink of an eye.
Alternatively, you can compute the EMIs payable and interest liability by using the below given mathematical formula:
EMI = P × r × (1 + r)n/((1 + r)n - 1)
- EMI refers to equated monthly installments
- P refers to the principal loan amount
- r refers to the rate of interest applicable on your business loan
- n refers to the tenure of the loan
Factors Affecting PNB Business Loan EMI Calculator
Every borrower needs to consider several factors before embarking on their business loan process. Applicants should weigh their EMI against their repayment capacity in order to decide on an installment plan that suits their needs. The following are the primary factors to consider:
Rate of interest
Interest rate refers to the rate at which banks and NBFCs offer loans to applicants. The interest rate primarily depends on the borrower's financial standing and CIBIL score. An applicant with a higher CIBIL score and positive repayment capacity is more likely to benefit from a lower and more economical interest rate. Lending institutions use CIBIL (Credit Information Bureau of India Limited) as a database to access borrowers' credit information.
The loan amount is a significant factor in determining your EMIs. The equated monthly installments are directly proportional to the loan amount you choose. Higher loan amounts result in higher EMIs, while lower ones mean that you'll need to make lower monthly payments but have a longer time in which you will have to repay.
The tenure (duration of a loan) can be adjusted accordingly to fit the applicant's budget. If you extend the term of your loan, your monthly installment will be spread out over a longer period This will in turn reduce the amount of EMI. On the other hand, reducing your tenure might make your payments higher since there would be less installments.
PNB Business Loan Amortisation Schedule
The amortisation schedule is a tabular representation of the systematic repayments of a loan. As you repay your loan over time, a larger percentage of your payment will go toward paying down your principal until you pay the loan in full. Hence, the schedule provides the borrower with a detailed breakdown of the EMIs payable over the tenure.
Below is an illustration of an amortisation schedule for a business loan amounting to INR 20,00,000 for a tenure of 10 years at 11.00% p.a.
|Year||Opening Balance||Interest Paid||Principal Paid||Closing Balance|
|1||INR 20,00,000||INR 2,04,309||INR 3,17,510||INR 16,82,490|
|2||INR 16,82,490||INR 1,67,576||INR 3,54,251||INR 13,28,239|
|3||INR 13,28,239||INR 1,26,573||INR 3,95,245||INR 9,32,994|
|4||INR 9,32,994||INR 80,836||INR 4,40,982||INR 4,92,012|
|5||INR 4,92,012||INR 29,806||INR 4,92,012||NIL|
Quick Ways to Get A Business Loan From Punjab National Bank
The Punjab National Bank offers a wide range of business loan products with minimal documentation, easy eligibility criteria, and competitive interest rates.
If you are a new customer at PNB, you can visit your nearest PNB branch and consult the manager about the business loan application procedure. A business loan application form must be filled out and submitted along with the required documents for processing the loan.
In contrast, existing PNB customers with a good repayment history and rapport may be eligible for a business loan with little effort. With instant approval and attractive benefits, you can expect an optimum experience.
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Frequently Asked Questions (FAQs)
Will the PNB business loan EMI remain constant or change in future?
The PNB business loan EMI usually remains constant unless the borrower requests the bank for any modifications and the same is approved by the bank.
What happens in case of increase or decrease in interest rate?
An increase in interest rates increases the cost of borrowing money resulting in higher EMIs. Whereas, a lower interest rate can fetch you lower and economical EMIs.
Will business loan EMI change in case of prepayment?
A prepayment on a business loan does not reduce the EMIs, however it reduces the tenure of the loan.
Why should I calculate PNB loan EMI before taking a loan?
By calculating the EMI before taking a loan helps you to plan your finances in a more efficient manner. An EMI calculator will help you take a loan according to your repayment capacity without being a burden on your income inflow.