Since the back and throw of the market, there has been a massive improvement in financial literacy, thanks to the mutiny of the internet and the surging interest of the common people. Though, we are still obscure from our western counterparts.
Ratio says that India hosts almost 1/5th of the universe’s population with a literacy rate of 80%. However, talking about financial literacy rounds up to 24%.
In terms of small and medium business situations, the criteria are even more complicated as day-by-day entrepreneurs must face chaotic challenges to enhance their businesses. This is where financial literacy often takes a backseat. Though, owners and people in business opt for potential Business Loans to get over the tenure.
Raging overcrowding of employees and enthusiasts, the Indian MSME sector enrols over 120 million people, whereas around 30% continues India’s GDP and 45% of India’s exports. For the time to get hold of the right decisions to finance business requirements, such entrepreneurs entail some hand-holding.
This is where a business loan is one of the most preferred approaches for small, medium, and large businesses. So, owners looking to expand and branch out the reach of their business, make sure to read this context of things, myths and facts about the business loans and EMI calculators that might cost you dearly if not followed properly.
Business Loan
A business loan is the abstracted amount of capital from a lender to fulfil the objectives of the business. In technical terms, it is mainly designed to assist business owners in undergoing an additional financing need to expand any business.
Simply put, a business loan is a financial transaction between the borrower and the lender. Henceforth, your idea to take on a business loan for eventual growth must not become a critical financial hurdle in the overall organization’s development.
So, to avoid such conditions, you need to get aware of the objective because you are taking a business loan and thoroughly stick to it past the duration of the loan cycle. On the other perspective, a business, in terms of being budding or established, requires a constant influx of funds.
Indeed, you have multiple means to finance your organisational expenses that can quickly meet your evolving enterprise’s varying financial necessities. Besides, such business loans seem collateral-free; hence, no requirement is needed to put down a personal or, say, a professional asset as a deposit.
So, before opting for a business loan, carefully check your loan eligibility and reckon the loan amount, interest rate, and monthly installments. You can use an online EMI calculator to get accurate results and smartly manage your repayments. Check out the details about the business loan EMI calculator and a few myths and facts to assist you in planning your expenses.
Business Loan EMI Calculator
A business loan EMI calculator is an online tool that helps you enumerate the amount you need to repay during the loan tenure. Generally, EMI calculators are available online, hence; you can simply input your loan amount, tenure, and interest rate to get the best results.
By checking your EMI amount beforehand, loan EMI the calculator provides your monthly instalments payable together with the amount of business loan interest rate payment over the loan tenure. We all know that calculating your monthly repayment amount prior to opting is a smart move. In fact, this comes with several benefits to adjust your monthly budget, future finances, etc.
Things You Might Get Wrong About Business Loan EMI Calculator
In case of digital lending apps, we get paranoid even about downloading or browsing through such portals. The worry about fake user interface, or other terminating issues that you need to consider is right here, so keep the following aspects, myths, and facts in check:
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Processing Fee
The impact of processing fee varies depending over the types of tenure, hence, a high processing fee in case might easily hype the overall cost of your loan. Also, GST is applicable on the processing fee.
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Higher CIBIL Score, Lower Interest Rate
Organizational bodies now loop the interest rate to your CIBIL score which you can check online. So, you need to stay intact with your CIBIL score and it might be an incentive to keep it high.
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Everything Is Negotiable
Nowadays everything is negotiable, so are the freebies. In fact, it is a give and take where you can negotiate. So, research, act smart and decide wisely before going for any loan EMI calculator.
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EMI in Arrears vs. EMI in Advance
EMI in arrears is referred to your regular loan EMI. As for the loans with EMI in Advance, the initial EMI is fine-tuned with the disbursed amount, minimizing the loan amount. Henceforth, the EMI gets lower in comparison to EMI in arrears loan product.
Myths And Facts
Myth #1- Business Loans are hard to get
Fact: Irrespective to popular opinion, obtaining a loan particularly for your business is very convenient. Moreover, the loan application process needs little paperwork, and the loan approval process gets swift.
Myth #2- Business EMI calculators are hard to use
Fact: EMI calculators are quite easy-to-use tools. The only thing you need to do is enter the amount you are looking to borrow, and the relative time for repayment and the Business loan EMI calculator will calculate your EMI amount. Mainly, using this loan calculator, you can effectively plan your installments, tackle additional business expenses, and promptly pay off the loan.
Myth #3- Business loan interest rates are high
Fact: In case of a business getting good responses and holds a promising repayment record, the owner can negotiate with a contrary lender to qualify for secure competitive rates of interest. In order to bag lower interest rates, you eventually need a healthy CIBIL score.
Note: You can feasibly tally the interest rates gathering different lenders and then use an EMI calculator or any business loan interest rate calculator to check the fact. By carrying forward any business you just need to ask, decide, act smart and be firm as there is not much to lose. Make sure you do not club everything and further haggle, so check out terms and negotiate for promising benefits to opt for relative business loan and EMI calculator. See Also: FD Calculator
FAQs
What are the aspects needed for a business loan?
Your business must have following aspects in order to opt for a competitive loan:
- A high annual turnover
- An upward trend in profits
- A healthy CIBIL score
- Satisfactory track record of repayment throughout your business tenure
What are the features of Business Loan EMI Calculator?
It uses the minimizing balance method to evaluate loan EMI and total interest to be paid with the help of key data like Principal, Interest Rate and Tenure entered by the user. Some additional charges may be applicable like processing fees, documentation charges depending on the calculator.
What is the use of Business Loan EMI Calculator?
It is a utility tool which gives you an accurate calculation of amount you need to repay each month towards your loan. Hence, loan EMI calculator helps you calculate the EMI amount on a home loan, car loan, bike loan, or any sort of personal loan. With the help of EMI calculator, you get an idea of the monthly repayments to pursue towards these loans.
