What is a Business Loan Calculator? Learn How it Can Help with Loan Application.Posted by Rupeek Fintech Pvt Ltd. on May 20th, 2021 The growth of the MSME sector in India has positively impacted the business loan segment in India. As per the reports prepared by a leading financial institution and a credit rating agency, India's MSME loan segment is likely to double in size with a 15% CAGR between FY 2019-24. The benefits of this financing option have a crucial role to play in its popularity. Nevertheless, before applying for one, applicants can take the assistance of a business loan calculator to gather more information about their advance and plan accordingly. It is an online tool that shows the payable EMI and interest amounts and also provides insights into other facets of repayment when the user inputs certain key variables. Read along to know more. How can a Business Loan Calculator Help with Loan Application? As mentioned above, it is an online device that aid business owners to calculate their loan and repayment amount. It uses the formula of EMI = P x r x (1+r) n / (1+r)^n-1, where –
Here individuals can insert the values in their respective fields and find the information they are looking for without any delay. Borrowers have the liberty to change these values as many times as they want until they find a loan offer that suits their needs. While applying for an online business loan, a calculator like this can prove to be very handy. Here are some notable benefits of using this online device –
Manual calculations are time-consuming and error-prone. To bypass this issue, one can use an online calculator like this. It uses a pre-defined algorithm based on the aforesaid formula that leaves no room for mistake, and the results are available instantly. Furthermore, the flexibility of changing values is an added bonus.
Another notable benefit of using a business loan calculator is that it provides access to the loan amortization schedule. Resultantly, borrowers can quickly learn the EMI breakup, interest payable and other details.
Since individuals can learn about their loan amount and its repayment beforehand, it helps them to plan their finances accordingly.
Lastly, calculators like this are free to use for everyone. They are available on the website of various lenders and other third-party websites, allowing individuals to find suitable loan offers without any delay. Along with checking the loan amount and EMIs, before applying for a business loan for new business, debtors should also consider the eligibility parameters to avoid rejection. What are the Business Loan Eligibility Criteria? Here is a list of eligibility norms that one needs to meet to avail a business loan successfully –
The eligibility criteria for business loans can be strict and hard to meet. However, one can easily bypass it by opting for a gold loan. For instance, the high gold rate in Delhi will enable borrowers to avail more funds against their gold articles, when compared to an unsecured business loan. Moreover, with lenders like Rupeek and their long list of customer-friendly features, individuals can have a satisfying borrowing experience. Regardless of what financial product one opts for, access to business loan calculators eases the process significantly. It allows borrowers to learn necessary information beforehand and proceed with more certainty. Like it? Share it!More by this author |