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HDFC Business Loan EMI Calculator India Sep 2020

Business Loan EMI Calculator HDFC Bank

Last Updated 23rd Sep 2020

Get monthly EMI as low as Rs. 2,816 per lakh on HDFC Bank business loan. Business loan EMI in HDFC Bank depends upon loan annual turnover, gross receipts, number of years of ITR, loan amount, loan tenure and interest rate.

Loan Amount1 Year Loan2 Year loan4 Year loan
₹ 1 Lakh₹ 9,057₹ 4,880₹ 2,816
₹ 5 Lakh₹ 45,283₹ 24,398₹ 14,081
₹ 10 Lakh₹ 90,565₹ 48,796₹ 28,161
Business Loan EMI Calculator
Lowest Interest Rate
Best Offers on Business Loan offerOffers
Bank/NBFCs Rate* EMI per Lakh* Action
HDFC Bank15.65%₹ 2,816Check Eligibility
Bajaj Finserv18.00%₹ 2,937Check Eligibility
ICICI Bank16.49%₹ 3,540Check Eligibility

* Starting From

Business Loan Calculator HDFC Bank

  • Business loan EMI (or equated monthly installment) is a fixed amount of money paid by you to HDFC Bank against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.
  • HDFC Bank offers business loans with loan tenure up to 48 months that translates into a lowest loan EMI of ₹ 2,816 per lakh, which makes it affordable for business loan borrowers. Lowest Rate of interest offered by HDFC Bank on business loan is 15.65%.

Use EMI Calculator to Calculate your EMI on Business Loan at Different Tenure

Business loan EMI for ₹ 10 Lakh loan amount at lowest 15.65% interest rate offered by HDFC Bank for different tenures

1 year 2 year 4 year
HDFC Bank EMI for loan amount of ₹ 10 Lakh at 15.65% ₹ 90,565 ₹ 48,796 ₹ 28,161
Total amount you pay back to the bank including principal and interest ₹ 11,65,927 ₹ 13,59,385 ₹ 18,47,927
Interest you have to pay over loan tenure ₹ 1,65,927 ₹ 3,59,385 ₹ 8,47,927
  • The above table shows the longer your loan tenure, lower is the EMI you pay on the loan. However, your total interest outgo is significantly higher in a long tenure loan. In the above example, if you take ₹ 10 Lakh loan for a period of 4 years, you pay the lowest EMI of ₹ 28,161. However, you pay an interest of ₹ 8,47,927 on a ₹ 10 Lakh loan.
  • In contrast, if you take a ₹ 10 Lakh loan from HDFC Bank at the lowest loan rate offered for a period of 1 year, you pay a higher loan EMI of ₹ 90,565 and pay an interest of only ₹ 1,65,927 which is less than half of what you paid in a 4 year loan. Hence, it is advisable to choose your loan tenure wisely as longer tenure means high interest expenses.

Factors affecting HDFC Bank Business Loan EMI

  • Loan amount - This is the amount borrower promises to repay to the bank with the interest applied. HDFC Bank gives minimum business loan of ₹ 50,000 up to an amount of ₹ 50,00,000.
  • Interest rate - Interest rate is the rate charged over the principal amount borrowed. Higher interest rate increases your loan EMI which will increase the total cost of the loan. Lowest interest rate offered by HDFC Bank is 15.65%. Do complete market research and compare rates online before you apply for a business loan.
  • Loan tenure - This is the period in which you can repay your business loan to the bank. Longer loan tenure means lower loan EMI. Generally, HDFC Bank offers business loan for a maximum tenure of 48 months.

Business Loan Amortization Calculator

An amortization schedule is a table of periodic loan payments that shows the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term.

In the Amortization schedule, your Business Loan monthly EMI will be equal, but the component of EMI, which consists of interest payment and principal payment will not remain the same every month, it keeps on changing.

Illustration: How to read an amortization schedule

Suppose if you take a Business Loan of ₹ 5 Lakh for 2 years at an interest rate of 13.50%. EMI calculated for this loan amount is ₹ 23,889 and the total annual EMIs to be paid annually is ₹ 2,86,662. The EMI schedule of loan for 2 years is explained below in the table –

Amortization Schedule for a Business Loan of ₹ 5 Lakh over the 2 years

Year Interest paid during the year Principal repaid during the year Total amount paid during the year (Interest + Principal) Outstanding Principal
2020 ₹ 21,258 ₹ 74,296 ₹ 95,554 ₹ 4,25,704
2021 ₹ 42,743 ₹ 2,43,919 ₹ 2,86,662 ₹ 1,81,785
2022 ₹ 9,323 ₹ 1,81,785 ₹ 1,91,108 -₹ 0

Each Business Loan EMI consists of both amounts of interest as well as the principal repaid. The interest component of EMI goes down while the principal component goes up in both cases while doing the calculation.

In the above illustration, on a Business Loan of ₹ 5 Lakh, taken at the lowest interest rate of 13.50%, EMI paid is ₹ 23,889 and an annual total of EMIs is ₹ 2,86,662, the interest component is ₹ 53,418 while the principal component is ₹ 2,33,244 in year 1 of loan disbursement. You repay only 46.65% of the total principal after paying 12 EMIs during the first year.

In year 2, the interest component of EMI is around 6.94%, while the principal component is around 93.06%. Upto 2 years, you have cumulatively repaid 100% of your total Business Loan.

HDFC Business Loan Calculator Formula

P*r* (1+r)^n/([(1+r)^n]-1)
Here is an illustration of how HDFC business loan EMI is calculated:
In above formula,
P = Loan amount. This can range from ₹ 50,000 to ₹ 50,00,000
r = Rate of interest per month. Current rate is 15.65%
n = tenure in month. For HDFC, this can be 48 months

Tips to decide the right amount of HDFC Bank Business Loan EMI

  • Ascertain the amount you need to borrow: It is important that before approaching HDFC Bank for business loan, you need to estimate the amount of loan you need to borrow. Remember business loan is an unsecured short term loan, and hence it is advisable to minimize your loan amount to the extent possible. Also, based on the EMI you can service, try to opt for lowest tenure of loans as long tenure loans result in huge interest outgo.
  • Review your current obligations: Before taking loan from HDFC Bank, it is advisable to do an evaluation of your current monthly expenses including any EMI obligations that you have on your current loans. The assessment will help you to estimate the amount of EMI you can pay comfortably after taking into account other obligations. Once you arrive at the EMI you can service, you can also decide on the right loan tenure.

FAQs

What is the calculation of HDFC Bank Business Loan EMI?

Business Loan EMI (or equated monthly installment) is a fixed amount of money paid by you to HDFC Bank against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.

  • Business Loan EMI (or equated monthly installment) is a fixed amount of money paid by you to HDFC Bank against the loan taken. This is towards repayment of your loan to the bank. Every month, it is due on a fixed day of the month till your loan is fully paid back.
  • With HDFC Bank offering business loan with loan tenure up to 48 months, the loan EMI can be as low as ₹ 2,816 per lakh, to make it more affordable and convenient to meet your business needs. Rate of interest offered by HDFC Bank are as low as 15.65%. You can check EMI for other tenures using our HDFC Bank business loan calculator.
  • This EMI consists of both interest payment and principal repayment. Though the EMI amount will remain constant, the principal component keeps increasing and on the other hand the interest component keeps reducing.

How does MyLoanCare business loan calculator calculate EMI?

This calculator calculates EMI considering a combination of loan amount, interest rate and loan tenure.

  • This calculator considers “reducing balance basis” and assumes that payment of EMI is made in arrears (means interest is charged for the month preceding the EMI payment date) and not in advance.

Will the HDFC Bank business loan EMI remain constant or change in future? What happens in case of increase or decrease in interest rate?

Typically, the business loan EMI remains unchanged unless the customer requests for a change and the same is approved by HDFC Bank subject to its eligibility conditions (note that nominal charges may apply for effecting a customer initiated change in EMI).

  • In case the floating rate of interest on your business loan increases, HDFC Bank will typically keep the EMI constant but increase the loan tenure. So, you will pay the same EMI but for a longer duration. In case the interest rates increase to an extent that the revised loan tenure is more than the maximum permissible by HDFC Bank, the bank may increase your EMI amount.
  • For partly disbursed loans availed under tranche EMI scheme, your loan EMI will increase with each disbursement.

Will business loan EMI change in case of prepayment?

HDFC Bank allows prepayment at nil charges or penalty in case of floating rate business loans.

  • When you make a prepayment, the outstanding principal amount on your loan reduces. In this case, you may choose to either keep the EMI same and reduce the loan tenure (that is paying off the loan faster) or reduce the EMI and keep the loan tenure same (that is paying lesser amount every month). It is beneficial to keep the EMI constant and reduce the loan tenure as you pay less interest to the bank in this option.

Why should I calculate HDFC Bank loan EMI before taking a loan?

In case EMI comes out to be more than your monthly budget, then you have the chance to apply for a lower loan amount which fits your monthly budget and makes EMI easily affordable.

  • If you already know the EMI you have to pay each month, then you can plan your expenses accordingly.
  • Based on the EMI amount, you can opt for making prepayment of your business loan in future when you have surplus amount.

Compare Business Loan EMI of All Banks

HDFC Bank Business Loan Customer Care Number, Email, Application Status, Branches
City Customer Care Number
Agra 993-590-3333
Ahmedabad 079-61606161
Ambala 999-624-3333
Anand 079-61606161
Aurangabad Bihar 022-61606161
Bangalore 080-61606161
Bhilai 1860-266-6161
Bhilwara 987-500-3333
Bhiwadi 022-61606161
Bhopal 0731-6160616
Bhubaneswar Cuttack 993-790-3333
Bikaner 987-500-3333
Chandigarh 0172-6160616
Chennai 044-61606161
Cochin 0484-6160616
Coimbatore 044-61606161
Dehradun 993-590-3333
Delhi 011-61606161
Durg 1860-266-6161
Faridabad 011-61606161
Gandhinagar 079-61606161
Ghaziabad 011-61606161
Goa 989-060-3333
Greater Noida 011-61606161
Gurgaon 011-61606161
Guwahati 995-719-3333
Gwalior 0731-6160616
Hyderabad 040-61606161
Indore 0731-6160616
Jabalpur 0731-6160616
Jaipur 0141-6160616
Jalandhar 981-533-1111
Jodhpur 987-500-3333
Kanpur 993-590-3333
Karnal 999-624-3333
Kolhapur 989-060-3333
Kolkata 033-61606161
Kota 987-500-3333
Kozhikode 989-566-3333
Lucknow 0522-6160616
Ludhiana 981-533-1111
Madurai 984-067-3333
Meerut 993-590-3333
Mehsana 079-61606161
Mohali Sas Nagar 981-533-1111
Mumbai 022-61606161
Mussoorie 993-590-3333
Nagpur 989-060-3333
Nashik 989-060-3333
Noida 011-61606161
Noida Extn 011-61606161
Panipat 999-624-3333
Patna 1860-266-6161
Pondicherry 984-067-3333
Pune 022-61606161
Raipur 1860-266-6161
Rajkot 079-61606161
Ranchi 1860-266-6161
Rohtak 999-624-3333
Roorkee 993-590-3333
Salem 984-067-3333
Shimla 999-624-3333
Sonipat 999-624-3333
Surat 079-61606161
Trichy 984-067-3333
Udaipur 987-500-3333
Vadodara 079-61606161
Varanasi 993-590-3333
Vijaywada 994-949-3333
Vizag 994-949-3333

HDFC Bank Business Loan Reviews 4.5/5  by 10 customers
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HDFC Bank Business Loan News - Sep 2020
  • 2020-07-15 : HDFC Bank lends Rs 10,800 crore in June quarter
    HDFC Bank has lent Rs 10,800 crore in the quarter ended June 2020, a period marked by lockdown and partial easing. It had offered Rs 10,100 crore loan in April-June 2019 (Q1FY20). The bank’s advances backed by the home, personal, business, car, two-wheeler, gold and mudra loan expanded by 21% on year to Rs 1,004,500 crore, as of June 30.
  • 2019-09-23 : Grameen loan melas by HDFC bank
    In a bid to promote business and small scale enterprise in the rural areas, HDFC Bank has planned to organize 1000 loan melas, in more than 300 districts. The event will cover around 6000 villages in India. Borrowers can borrow a variety of loan products that include agricultural loans, commercial vehicle loans, and auto loans. In addition, people in rural areas can also avail of access to savings and current account during the event.
  • 2019-03-19 : HDFC Bank has relaunched the upgraded version of its mobile banking application app
    Private sector lender, HDFC Bank has relaunched the upgraded version of its mobile banking application (app), which was pulled down weeks after its launch in November. Now, the app users can install the new version of the app, which is available on both Google Play Store and Apple App Store. In addition to this, the bank also has plans to achieve a significant growth across its retail loans portfolio including home loans and business loans.
  • 2019-02-14 : HDFC Bank ramps up lending to small companies to boost profitability
    HDFC Bank is ramping up its lending to small companies that would help it boost profitability. The lender has managed to disburse MSME loans of up to Rs. 1,200 crore till the date. The bank has made it easier for the small scale borrowers to avail these loans in an easier way by granting final approval in only just three to five hours.
  • 2019-02-13 : HDFC Bank forays into small business loans
    The bank has entered into the small business lending, with the launch of an analytics-based credit appraisal tool that will help sanction working capital in less than one hour. With the launch of this new product, the lender is targeting to disburse 50% of retail loans including personal loans, digital loans for small business in the coming months.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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