Business Loan EMI Calculator

Calculate business loan EMI including MUDRA loan categories and eligibility

Loan Amount (₹)

Interest Rate (% p.a.)

Tenure (Years)

Loan Type

MUDRA Category

Annual Income as per ITR (₹)

Processing Fee (%)

About Business Loans in India

Term Loan: Fixed EMI loan for business expansion, machinery purchase, etc. Tenure 1-15 years
Working Capital Loan: Short-term loan for day-to-day operations. Usually 1-3 years
Overdraft (OD): Flexible credit facility; interest charged only on utilized amount
Processing fee: Usually 1-2% of loan amount + GST
Collateral: Secured loans require collateral; unsecured (like MUDRA) may not

MUDRA Loan Scheme (Micro Units Development and Refinance Agency)

Shishu: Loans up to ₹50,000 — for starting a new micro enterprise
Kishore: Loans from ₹50,001 to ₹5,00,000 — for expanding existing business
Tarun: Loans from ₹5,00,001 to ₹10,00,000 — for establishing/growing business
Interest rate: Typically 8-12% p.a. (varies by bank)
No collateral: MUDRA loans up to ₹10 lakh do not require collateral
Credit Guarantee: Covered under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises)
Apply at: Any bank or NBFC; apply through the Udyam portal

CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises)

Provides credit guarantee to banks for loans up to ₹2 crore to micro and small enterprises
No collateral required for loans up to ₹2 crore (subject to conditions)
Guarantee fee: 1-2% per annum on the loan amount
Coverage: Up to 75-85% of the loan amount
Eligible entities: New and existing micro and small enterprises

About Business Loan EMI Calculator

The Business Loan EMI Calculator computes monthly installments for business loans including term loans, working capital loans, and machinery loans. Interest rates for business loans range from 9% to 20% depending on the business vintage, turnover, profitability, and collateral offered. The calculator helps entrepreneurs plan their cash flows by showing EMI obligations alongside projected business revenue for FY 2026-27.

Business loans are available from banks, NBFCs, and government schemes like MUDRA Loan (up to ₹10 lakh), CGTMSE (collateral-free up to ₹2 crore), and Stand-Up India. The EMI structure, interest calculation method (flat vs reducing balance), and processing fees vary significantly across lenders. Our calculator handles both methods and provides transparent cost comparison to help you choose the best business loan.

Key Features

EMI for term loans and working capital loans
Flat rate vs reducing balance comparison
MUDRA, CGTMSE, and Stand-Up India eligibility
Cash flow impact analysis
Processing fee and hidden cost detection

Frequently Asked Questions

What is the interest rate for business loans in India?

Business loan interest rates in India range from 9% to 20% per annum, depending on the lender, loan type, business profile, and collateral. Secured business loans (against property, FD, or machinery) get rates of 9-14%, while unsecured business loans carry rates of 14-20%. Government schemes like MUDRA offer rates of 8.60-12% for Shishu, Kishore, and Tarun categories.

What is the difference between flat rate and reducing balance rate?

Flat rate calculates interest on the full principal throughout the tenure, resulting in a higher effective rate. Reducing balance calculates interest on the outstanding principal, which decreases with each EMI. A 10% flat rate on a 5-year loan is approximately equal to a 17-18% reducing balance rate. Always compare loans on the reducing balance basis for accurate cost assessment.

Business Loan EMI Calculator