World News  The loan that you borrow from a bank or NBFC for your business or business-related work is known as a business loan. It is an easy way to generate funds for a business. There are many Banks and NBFC which offer business loan. While availing the business loan, you should consider three critical factors:

1. loan amount
2. tenure of the loan
3. interest rate.

It is advisable to check the EMI amount you have to pay per month or year for business loan, so you must calculate the amount with EMI calculator.

You have to fulfill some simple business loan eligibility criteria if you want to avail of it. These criteria are:

• Your age should be between 25-55 years at the time of loan application.
• Your business must have its income tax returns for at least the last year.

EMI, or Equated Monthly Instalment, is the installment that you pay every month to the lender of the loan. EMI calculation is possible by simple mathematical methods based on the loan amount, rate of interest, and tenure of the loan.

You can calculate business loan EMI by any of the three ways:

• Using Mathematical formula

Business loan EMI calculation by a mathematical formula or a calculator uses the following formula:

EMI = (P x Rx [1+R ^N]/ [(1+R) ^N-1],

Where,

P = Principal amount

R = Interest rate per month

N = number of monthly installments.

In a spreadsheet, you have to use the function PMT for calculating EMIs. The EMI calculator formula in excel uses the following syntax: PMT (rate, per, PV).

Where,

Rate – Interest rate for the loan.

PV – Present value/principal.

• Using online EMI Calculator

The most accurate and quick way of calculating the business loan EMI is to use an online loan EMI calculator. Enter the below details on the EMI calculator–

1. Principal (loan amount
2. Tenor
3. Rate of interest

## How to use a Business Loan Calculator?

You can use a business loan online calculator by following some simple steps.

Step 1: Fix the loan amount. It is the amount that you wish to borrow.

Step 2: Set the rate of interest. The lender generally predetermines this.

Step 3: Set the loan-tenure in months. It is the duration for which you intend to take a loan and during which you will have to repay the loan amount. It is adjustable and flexible, depending upon your needs.

Step 4: Add the processing fee, if any. Sometimes, the lender may ask for this.

After feeding the data in an onlinebusiness loan emi calculator, you will get the exact EMI payable. This is the easiest option to decide the most convenient and suitable loan deal for your business.