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

Monthly Loan EMI

Payment Breakdown:

Principal Amount

₹15,00,000

Interest Payable

Total Amount Payable

The SBI Business Loan is a fixed amount of money that a borrower needs to pay the bank within a specified time against an availed business loan. To know the exact loan EMI, you can access an online and handy tool, SBI Business Loan Calculator. Whatever your loan amount, interest rate and repayment tenure, this calculator will calculate the EMI as per the mentioned details. SBI provides business loans up to 25 lacs at competitive interest rates. This step will also assist in reaching the financial goals of your business and escalate its growth.

Before you begin the loan application process, one of your top priorities should be to better grasp the EMIs that will need to be paid in relation to the loan. To get a clear sense of the monthly EMI, and plan repayments in advance, use the SBI Business Loan Calculator. You can organize your monthly spending in accordance with your loan repayment schedule.

SBI Business Loan EMI Calculator

SBI Business Loan EMI calculator is an advanced AI-based financial tool that helps business personnel to determine the amount they can afford to borrow to meet their requirements. The SBI business loan interest rate calculator computes the prospective monthly instalments for the chosen repayment tenure.  

The SBI Business Loan EMI Calculator was created to assist prospective clients in organizing their loans more effectively while taking other everyday business expenses into account. To use this calculator, some basic yet essential information must be filled in. Such as the interest rate, the desired loan amount, and the loan repayment tenure.

Quick results are returned on your screen when you enter the necessary information into the calculator. 

Based on the given inputs, the calculator will provide you with the payable interest component and the total payable amount for the given tenure.

Additionally, you get the amortization schedule, which gives you a clear idea of how your payments will be made throughout the loan tenure. By having these figures beforehand, you will have clarity about your borrowing decision, i.e. to move or not to move with the application further. 

Specifications of SBI Business Loan Calculator

The SBI Business Loan Calculator, works on three fundamental specifics, i.e. principal amount, interest rate and repayment tenure. Here’s what you must know about these specifications:

  • Principal Amount: It is the amount you borrow for a business loan. It is evident that the monthly instalments and final repayment value depends on the principal amount. The higher the principal amount, the higher the EMIs and the more the repayment amount. So, before taking out an SBI business loan, ensure you are borrowing the required amount and not more than what’s needed.
  • Interest Rates: The rate of interest the bank levies on the amount you are approved for. The interest rate will be determined based upon the RBIs Repo Rate, the applicant’s credit score, financial history and income stability, to name a few. The levied interest rate determines your monthly EMI and the total interest component you will pay throughout the loan tenure.
  • Repayment Tenure: The repayment tenure is the specified time in which you are bound to repay the borrowed amount. SBI offered business loans with flexible repayment tenure of up to 5 years. The longer the repayment tenure, the lesser the EMI, but you will pay more on interest. At the same time, short repayment tenure might result in higher monthly instalments, but you will end up paying a lesser amount in terms of the interest component.

The SBI Business Loan EMI Calculator will cater to accessing the following information in a fraction of a second:

  • Monthly payable EMIs that the applicant is bound to pay.
  • Interest component in a monthly EMI.
  • Amount of principal component included in the monthly EMI.
  • Overall interest component that will be paid across the loan repayment tenure. 
  • Graphical representation of the output and amortisation schedule.

Moreover, you can compute monthly EMI through the SBI business loan interest rate calculator. Figure out the interest amount on monthly instalments and manage your expenses in advance. Having access to such information beforehand will ensure that you don't miss any EMI, resulting in improved credibility and more control over your financial goals.

SBI Business Loan EMI Calculator Formula and How It Works? 

The SBI Loan EMI Calculator may be an advanced tool, but it works on a mathematical formula in the back end. The same formula used for manual computations is easier than ever. The Business Loan EMI Calculator SBI works on the following:

EMI = P x R x (1 + R) ^ T / {(1 + R ) ^ T - 1} 

Where

  • The Principal Amount is represented by the variable P. 
  • The applicable interest rate is denoted with the variable R.
  • The repayment tenure is represented by T.

The symbol ^ stands for the exponential function and is read as "raised to". 

Let's understand the working of the formula with the help of an example.

Person A took an SBI business loan of INR 2.5 Lakh for a 2-year time period at an interest rate of 18% per annum. The EMI would be calculated in the following manner:

For the given scenario: 

Principal Loan Amount or P is equal to INR 2.5 lakh

The rate of Interest or R is 18%

Repayment Tenure or T is 2 years 

Sufficing the values in the given formula:

P x R x (1 + R) ^ T / {(1 + R ) ^ T - 1}

2,50,000 x 18% x (1 + 18%) ^2 / {( 1 + 18%) ^ 2 -1}

EMI = 12,481 

The equated monthly instalment that A will have to pay equates to INR 12,481. 

Benefits of Calculating SBI Business Loan Online

The SBI Business Loan EMI Calculator not only lets you figure out the monthly EMI but also other factors like the loan amortisation plan, outstanding loan balance, comparing monthly business loan EMIs with other lenders, etc. Some of the characteristics of the Axis Bank Business Loan Calculator are listed below:

Calculate EMIs for Loans of Different Amounts and Tenures

The SBI Business Loan EMI Calculator allows you to compare EMI amounts for loans of various amounts and repayment tenures. To calculate the EMI, you must first check the business loan interest rate. The institution now has business loan products available with interest rates as low as 11%.

Compare SBI Business Loan EMI

The calculator gives you a precise estimate of your SBI business loan EMIs in comparison to loans from other banks with various loan amounts and terms. Using this information, you may decide which loan amount and repayment arrangement is the most economical for you.

Receive a thorough Amortisation Schedule

You can divide the total EMIs into principal and interest repayment at specific points during the loan period with the use of the SBI Business Loan EMI Calculator. With each payment, the borrower can obtain a thorough grasp of the loan balance and the amount of interest they are paying.

Calculate the Outstanding Balance

The SBI Business Loan Interest Rate calculator assists in figuring out how long the loan will be in total for any given outstanding balance. As a result, it can assist you in shortening the term of your loan through prepayment, foreclosure, or a balance transfer to a loan with a lower interest rate. 

Business Loan Amortisation Calculator 

The process of dividing a fixed-rate loan into equal instalments is referred to as Amortisation. The calculation of the principal and interest amount to be paid monthly in the form of EMIs is often broken down into an amortisation schedule.

To put it another way, with each EMI, the principle and interest share are adjusted. However, the former continues to fall, while the latter continues to rise. As a result, you will only have paid a little fraction of the principal amount if you want to pay off your loan in the first few years.

Let us understand how the amortisation is computed through a quick example:

Suppose you have secured a business loan of ₹ 15,00,000 from the State Bank of India for five years at an interest rate of 11.5% per annum.

Using the given formula the monthly payable instalments would be ₹ 32,989. Annually you will have to pay EMI worth ₹ 3,95,868. 

All these figures come in play with the help of an SBI Business Loan calculator and an amortisation schedule.

The below-depicted table represents the amortisation schedule for the borrowed amount i.e. ₹ 15,00,00 at an interest rate of 11.5% with a repayment tenure of 5 years.

Year Opening Balance Annual Interest Component Principal Component repaid during the year Closing Balance
1st Year INR 15,00,000 INR 1,60,342 INR 2,35,525 INR 12,64,475
2nd Year INR 12,64,475 INR 1,31,783 INR 2,64,084 INR 10,00,391
3rd Year INR  10,00,391 INR 99,760 INR 2,96,107 INR 7,04,285
4th Year INR 7,04,285 INR 63,854 INR 3,32,012 INR 3,72,272
5th Year INR 3,72,272 INR 23,595 INR 3,72,272 0

What is a Quick Way to Get a Business Loan from the State Bank of India?

If you are an existing customer of SBI and have availed of any of their services, obtaining a business loan becomes easier. You can secure a business loan with minimal documentation, and instant approval. Consider it as one of the perks of being an existing customer with a balanced financial history and creditworthiness.

However, if you are not an existing customer, you can visit the bank’s official website. Sign up using the required information and login credentials, and easily apply for a business loan by uploading the essential set of documents. Once you’ve filled out the application correctly, a bank executive will get back to you after carrying out a thorough evaluation based on the form submitted.

Another way to get a quick SBI business loan is to get in touch with a bank executive by visiting the nearest branch to you. Once your queries and concerns are resolved, fill out the business loan form along with attaching the required documents including identity proof, business proofs, and financial history.

Note: The applicants must ensure that their CIBIL score is 750 or above and they have a reliable financial history.

Frequently Asked Questions (FAQs)

What is the interest rate for business loans in SBI?

The SBI offers highly competitive interest rates on business loans starting from 11%.

What is the EMI for 10 lakhs in SBI?

For a business loan of 10 lakhs at an interest rate of 12% for 10 years, you will have to pay INR 14,174.

What is the tenure of the SBI BL?

The SBI BL or business loan comes with a repayment tenure starting from 5 years.

Will the SBI business loan EMI remain constant or change in the future?

It depends on the chosen interest rate type. If you count on a fixed interest rate the EMI will remain the same throughout the loan repayment tenure. On the other hand, in the case of variable interest rates, the EMI will change based on the changing Repo rate.