Business Loan Calculator

Calculate EMI, total interest and the effective annual cost (APR) of a business loan including the processing fee.

What is the Business Loan Calculator?

Business loans for MSMEs and self-employed borrowers often carry processing fees that raise the true cost above the quoted rate.

How does it work?

EMI uses the reducing-balance formula. The APR is the internal rate of return of the loan: the amount actually received (loan minus fee) against all EMIs paid.

Formula

APR = 12 × IRR(−(Loan − Fee), EMI, EMI, …)

Example

₹10 lakh at 14% for 36 months with a 2% fee: EMI ₹34,178 and an APR of about 15.4%.

Frequently asked questions

What documents are needed?

Usually KYC, GST returns, bank statements for 6–12 months, ITRs and business registration proof.

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