Business loans are always huge thus it is wise to prepay the business loan amount as early as possible. Your bank will permit premature closure of your loan but they will also charge a penalty fee. But how will you calculate your EMIs or part payment and other things?
Well, you can simply use the business loan prepayment calculator and calculate everything you want to know. A business loan prepayment calculator can make things easier for you.
What is a business loan prepayment calculator?
MSME loan or Business loan prepayment calculator is a great help when you want to know the EMIs of prepayment and plan your loan foreclosure.
With this business loan prepayment calculator, you can check the basic details such as principal amount, EMIs paid, date of prepayment, rate of interest, and tenure of your loan. You will get the details automatically and you can get a more clear picture.
Business Prepayment Loan Features & Benefits
Here are some business prepayment loan features and benefits.
Be Free From Debt:
Business loans always take a big chunk of your profit and sometimes can cause financial distress when the profit is low. Therefore, whenever you get a chance to prepay your business loan after the end of your lock-in period you must do it. Paying the outstanding amount early can help you in making debt-free.
A business loan prepayment calculator helps you in lowering your debt burden. However, if you prepay the outstanding loan amount, the debt burden will decrease. Make sure to prepay the business loan and plan everything using a business loan prepayment calculator.
Lowered Interest Outflow:
When it comes to business loan prepayment, the crucial factor to consider is the tenure of your lock-in period. It means a time period for which your lender does not allow you to make any prepayments full or partial towards the outstanding loan amount.
Therefore, to know how much you are saving on the interest applicable on your loan amount you can use the business loan prepayment calculator. Also, make sure to ask about the processing fee on the prepayment of your business loans. The charges on prepayment vary from one financial lender to the other.
Improve Your Credit Score:
Business loan prepayment can improve your credit score. It is because the earlier you pay your outstanding principal amount the better your credit score becomes. It will help you in getting another business loan instantly.
How does a business loan prepayment calculator work?
Before we know how business loan prepayment is calculated, remember that all the lenders have a lock-in period due to which you cannot prepay your loan. Also, if you have repaid the loan in terms of EMI structure in the lock period then only a prepayment facility will be available for you.
Once you enter the required details, the business loan prepayment calculator will do all the maths for you. Get accurate answers without taking any stress of complex calculations.
How to use UrbanMoney business loan prepayment calculator?
Using UrbanMoney business loan prepayment calculator is quite an easy task. You simply have to enter some values and you can get all the business loan prepayment details.
You have to enter your principal amount, the EMIs you have paid, the date of prepayment, the rate of interest, and tenure of your loan. Once you enter all these details click on the submit button and business loan prepayment calculator will answer all your questions.
Usefulness of Business Loan Prepayment Calculator
Use the following tips for using Business Loan Prepayment Calculator.
- You can manage operational costs at a good rate by using the business loan prepayment calculator for accurate calculations.
- Maintain your working capital.
- You can boost, support, rehabilitate, or buy new machinery, software, and other assets after saving money from interest after the prepayment.
- With the saved money you can improve your business infrastructure.
- You can also use that saved money and take your business online.
You can simply save the money after doing the prepayment of the loan. This business loan prepayment calculator can help you achieve all these things.