Calculating your EMI before taking a business loan helps you understand the monthly repayment amount, including both principal and interest components. This allows you to plan your finances better, ensure timely repayments, and choose a loan amount and tenure that fit your business’s cash flow.
The eligibility criteria for business loans vary from one lender to another. Most lenders have specific age limits for applicants and may require businesses to maintain a minimum annual turnover for one or more years. Other factors, such as credit score, business stability, and repayment capacity, may also be considered.
You can easily check your eligibility using a Business Loan Eligibility Calculator before applying.
Your EMI usually stays the same once your loan amount, interest rate, and tenure are fixed at the time of approval.
However, if your loan has a floating interest rate, your EMI may increase or decrease if there are changes in the benchmark rate or the lender’s rate of interest.
If there’s any change to your interest rate, EMI amount, or repayment schedule, your lender will inform you in advance through your registered contact details, and the update will also reflect in your loan statement and Key Fact Statement (KFS).
Your EMI due date is fixed at the time of loan approval and remains the same each month which shall be mentined as part of the loan agreemwent — “repayment schedule”. Typically, the EMI is due on the same date every month, starting from the date of the first loan disbursal to your bank account.
Lenders offer several convenient options to repay your monthly EMIs. The most common method is through auto-debit or NACH (National Automated Clearing House), which allows your EMI to be automatically deducted from your registered bank account on the due date.
You can also make EMI payments through online banking, UPI, or other digital payment modes (if supported by your lender). In some cases, repayment may also be accepted via post-dated cheques or cheque deposits at designated branches, as per the lender’s policy.
At the time of loan setup, you can choose your preferred repayment method and update it later if your lender permits.
