How to Use Business Loan EMI Calculator in 2022?
Maintaining a company is neither easy nor cheap. It is going to take a lot of time and money. But, the latter is not something you need to worry about if you take a loan. You can use this financing choice for everything related to the growth of your firm, from building an infrastructure to launching a marketing campaign. However, debt is a trap that can harm a company’s finances as well as its personnel and growth.
Interest rates on business loans are high as they are unsecured loans. Thus, it may be tough for some firms to make the required EMIs toward the loan’s principal and interest. Use an EMI calculator for business loans to avoid this kind of scenario. If you are looking for low-interest rates for your small business or start-up, you can opt for MSME business loans. Read on to find out all that you must know about a business loan EMI calculator and MSME business loans.
What do you mean by Business Loan Calculator?
A business loan calculator helps you simplify your business loan information. It helps you understand the components of your loan, such as your interest rate, your principal amount, and your loan period. The whole cost of borrowing the money is segregated into a Business Loan calculator. To make it easier to keep track of the amount you need to pay each month, it breaks down your principal and interest into a single number. For an EMI calculator, you need to know three things: the loan amount (how much money you will be borrowing), the interest rate of your loan (you can guess this or contact your lender to know this), and the time over which you will pay off the loan.
Benefits of Business Loan Calculators
The following are a few of the main perks of using a business loan calculator:
- Gives precise and reliable calculations
You can manually calculate the monthly repayment amount. You can compute your monthly payment amount with a business loan calculator. If you alter the loan balance or the repayment period, you can also know the difference in this sum. You can not afford a mistake; thus, this sum needs to be correct. You can end up in a bad situation if you obtain a loan that you can’t afford to pay back. The simplest way to avoid the issue is to use a calculator that has been created to cater to this need.
- Aids in determining the need for business loans
If you are unsure if you fit the needs for a business loan, applying for one can be a time-consuming process that ends with either approval or rejection. You can check your eligibility by using a calculator rather than waiting for the loan processing officer to decide if you fulfill the needs for a business loan and then tell you. You can be sure that you qualify for the loan if you notice a monthly loan payment that your firm can afford.
- It is simple and quick.
Manually calculating the repayment amount can take a lot of time. Even if you are a math prodigy, you will need to spend at least an hour checking your calculations to ensure that they are right. But if you use a calculator, you can get the answer quickly, and it is as exact as possible. Since you only need to enter a few pieces of information, including the loan amount, the loan term, and the interest rate, using the calculator is very easy. The rest is up to the calculator.
- It supports mobile devices
For a business loan calculator, you can use your cell phone as an EMI calculator. Even opening your tablet or laptop is needed. On the screen of your mobile device, you may quickly see the monthly payment. You only need to quickly type a few numbers, like the loan amount and the loan term. Even if you use your phone to do it, it’s very easy.
Things to keep in mind while applying for an MSME business loan.
MSME refers to any micro, small, or medium enterprise or start-up. Most financial institutions provide low-interest and collateral-free loans to start-ups and small businesses. You can opt for an MSME business loan if you are looking for some working capital or are in need of a cash boost.
However, you need to keep a few things in mind before applying for an MSME business loan. Some of these are:
1. Your credit score:
Your credit score is an important factor when it comes to borrowing. A good credit score will get you a low-interest loan with better repayment terms. For businesses, banks look for a Company Credit Report (CCR) which is equivalent to the CIBIL score of an individual.
2. Your financial records:
Whether your business is an established one or a start-up, having your financial records neatly organized can be quite an advantage. Most banks will instantly approve your MSME business loan if you have your previous financial records, such as GST and audit reports, in hand.
3. Your business registrations:
When you are seeking a business loan, it is essential to have your business registered according to state rules and regulations. If your business is GST registered, your loan application has a better chance of approval.
The Bottom Line
Getting a business loan can be the best thing for your firm. But, deciding to seek this kind of aid should not be done hastily. Business loan interest rates are higher than secured loan interest rates, regardless of the borrower’s credit history or the company’s financial standing (home loans, gold loans, and more). The EMI calculator for businesses can help you figure out how much you can afford to borrow without affecting your firm.
A Business Loan calculator is a great way to check if an MSME Business Loan is right for your business. You will know if a loan is viable and if it will help you reach your business goal. The current technology means you don’t have to do the math yourself.
Visit the official website of Piramal Finance to read about the different types of business loans. Find real, personalized information about a wide range of financial products and services, such as personal loans and different financial calculators, here.