EMI Calculators and Business Loans – Facts and Myths

Loans are ingrained in the fabric of our daily lives. The fact is that without loans, we cannot function successfully, whether to fund the acquisition of a house or a vehicle or to support our children’s overseas education. When loan repayment terms are discussed, the term EMI (Equated Monthly Instalment) immediately comes to mind. EMI stands for interest-only monthly payments on a loan of our choosing.

As is the case with a mortgage, an EMI calculator is accessible. In this article, we’ll teach how to utilise the loan emi calculator, a simple online tool that assists you in determining the monthly payment due on your loan. Three key parameters must be addressed when using an EMI calculator: the loan amount, the loan period, and the interest rate. A monthly payment made to the lender to repay the principal and interest on a loan is referred to as an EMI.

Whatever the size of the firm, it needs a consistent flow of cash. While there are several options for paying your firm’s expenses, business financing from a reliable lender may quickly fulfil your increasing corporation’s diversified financial needs. Additionally, since these loans do not demand security, no down payment on a personal or professional asset is required.

Prior to submitting an application for a business loan, you must assess your loan eligibility and then calculate the loan amount, interest rate, and monthly payments, as detailed here. Using an online EMI calculator enables you to manage your loan repayments more precisely. Continue reading to see how an EMI calculator may help you manage your finances more effectively in the future. 

The EMI calculator is a free online tool that will aid you in determining the total amount of money that will be needed to be returned during the term of the loan. Online EMI calculators are commonly available these days; all you have to do is input the loan amount, the loan term, and the interest rate to get an estimate.

If you input your monthly instalment amount in advance, the calculator will calculate your monthly payment and interest rate for the duration of your business loan. Calculating your monthly repayment before enrolling is a wise move that will benefit your monthly budget, future cash flow, and other aspects of your life. Here are some myths that you should avoid believing in:


  1. Myth: High-Interest Rate = Large Monthly Instalments – While it may seem rational to associate high interest rates with large monthly payments, this is seldom the case in practice. Banks are prepared to extend a loan’s maturity date in order to offset a high interest rate. As a result, your EMI will be low. When determining the EMI, other criteria such as the borrower’s age and income are taken into account. Your salary is a factor in deciding the amount of money you may borrow. Bear in mind that the shorter the loan term, the greater your monthly payment will be, and vice versa. Due to the high interest rates, borrowers often default on their loans, which has a negative effect on their credit score.
  2. Myth: Low-Interest rate means cheaper loans – While a low interest rate suggests a low interest payment, there are a variety of additional things to consider. If not taken into account, there may be a few hidden fees that might result in an increase in your monthly EMI payment. On the other hand, low-interest loans may be restricted in that they require repayment over a longer period of time. Thus, although a low interest rate is unquestionably significant, it is not the only consideration.
  3. Thus, although a low interest rate is unquestionably significant, it is not the only consideration.
  4. Myth: High Credit Score guarantees loan approval – Credit scores, like first impressions, assist lenders in forming educated judgments about you. On the other hand, a good credit score does not in and of itself ensure loan acceptance. Before issuing a loan, most lenders assess a variety of factors, including income, company turnover, and so on. In contrast, having a low credit score does not automatically exclude you from obtaining a loan.
  5. Myth: Personal Loan is always a better choice than Business Loan – Comparing personal and business loans is akin to comparing apples and oranges. Like personal loans, business loans give funds and need repayment; however, the parallels stop there. Personal loans are often associated with very high interest rates and short payback terms. The loan amount is modest, and it is intended to meet the living expenditures of a single person. Business loans are the best option for those seeking a large loan amount, a lengthy loan term, or a low interest rate, to mention a few. As a result, your requirements govern everything.
  6. Myth: Business Loans are hard to get – This is a fantastical urban legend from another age. Not only established firms, but also small businesses and startups, are eligible for business loans. The government has launched a number of loan programmes geared toward small businesses and startups. You may always turn to Non-Banking Financial Companies (NBFCs) for a loan approval that is accelerated. Unsecured business loans may be used in a number of situations. As a result, you will be able to get the finances you want without providing any collateral. Finally, seeking company loan approval does not take an eternity. If you maintain your paperwork organised and submit it on time, your loan application will be granted quickly. As previously said, a solid credit score, a well-organized company plan, and a track record of financial success are all necessary components of obtaining a business loan quickly.
  7. Myth: Big lenders are the best lenders – To be honest, well-known lenders exude an image of respectability and dependability. Bear in mind that you are the one seeking money. Consumers now have a plethora of loan alternatives, which is a positive development. Apart from the main NBFCs and banks, a number of smaller lenders have just been founded and/or do not yet have a significant market position. They are often more understanding of their situation, since they are virtually as reliant on you as you are on them. Apart from banks, non-bank financial companies (NBFCs) and online lenders provide competitive lending rates. Numerous suitable alternatives are available for a range of applications. Additionally, working with alternative lenders may result in reduced interest rates, simplified paperwork, and faster loan approval.



Urban legends and rumours are a common occurrence in everyday life. However, it is critical to promptly correct any mistakes identified. The fallacies discussed in this article should help you make a better-informed loan application selection.


Sneha Shukla

Hello, This is Sneha and I am the owner of www.fullformx.com Thank you for visiting our site. Here I am creating this site only focusing to help people, also, I have 4 years' experience in this field. for quality, information stay connected with our site. Thank you

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