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ICICI Business Loan EMI Calculator India Sep 2020

Business Loan EMI Calculator ICICI Bank

Last Updated 17th Sep 2020

Get monthly EMI as low as Rs. 3,540 per lakh on ICICI Bank business loan. Business loan EMI in ICICI 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 loan3 Year loan
₹ 1 Lakh₹ 9,096₹ 4,920₹ 3,540
₹ 5 Lakh₹ 45,481₹ 24,599₹ 17,700
₹ 10 Lakh₹ 90,963₹ 49,198₹ 35,399
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 ICICI Bank

  • Business loan EMI (or equated monthly installment) is a fixed amount of money paid by you to ICICI 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.
  • ICICI Bank offers business loans with loan tenure up to 36 months that translates into a lowest loan EMI of ₹ 3,540 per lakh, which makes it affordable for business loan borrowers. Lowest Rate of interest offered by ICICI Bank on business loan is 16.49%.

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

Business loan EMI for ₹ 10 Lakh loan amount at lowest 16.49% interest rate offered by ICICI Bank for different tenures

1 year 2 year 3 year
ICICI Bank EMI for loan amount of ₹ 10 Lakh at 16.49% ₹ 90,963 ₹ 49,198 ₹ 35,399
Total amount you pay back to the bank including principal and interest ₹ 11,75,380 ₹ 13,81,518 ₹ 16,23,809
Interest you have to pay over loan tenure ₹ 1,75,380 ₹ 3,81,518 ₹ 6,23,809
  • 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 3 years, you pay the lowest EMI of ₹ 35,399. However, you pay an interest of ₹ 6,23,809 on a ₹ 10 Lakh loan.
  • In contrast, if you take a ₹ 10 Lakh loan from ICICI Bank at the lowest loan rate offered for a period of 1 year, you pay a higher loan EMI of ₹ 90,963 and pay an interest of only ₹ 1,75,380 which is less than half of what you paid in a 3 year loan. Hence, it is advisable to choose your loan tenure wisely as longer tenure means high interest expenses.

Factors affecting ICICI Bank Business Loan EMI

  • Loan amount - This is the amount borrower promises to repay to the bank with the interest applied. ICICI Bank gives minimum business loan of ₹ 1,00,000 up to an amount of ₹ 40,00,000.
  • 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 ICICI Bank is 16.49%. 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, ICICI Bank offers business loan for a maximum tenure of 36 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.

ICICI Business Loan Calculator Formula

P*r* (1+r)^n/([(1+r)^n]-1)
Here is an illustration of how ICICI business loan EMI is calculated:
In above formula,
P = Loan amount. This can range from ₹ 1,00,000 to ₹ 40,00,000
r = Rate of interest per month. Current rate is 16.49%
n = tenure in month. For ICICI, this can be 36 months

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

  • Ascertain the amount you need to borrow: It is important that before approaching ICICI 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 ICICI 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 ICICI Bank Business Loan EMI?

Business Loan EMI (or equated monthly installment) is a fixed amount of money paid by you to ICICI 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 ICICI 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 ICICI Bank offering business loan with loan tenure up to 36 months, the loan EMI can be as low as ₹ 3,540 per lakh, to make it more affordable and convenient to meet your business needs. Rate of interest offered by ICICI Bank are as low as 16.49%. You can check EMI for other tenures using our ICICI 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 ICICI 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 ICICI 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, ICICI 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 ICICI 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?

ICICI 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 ICICI 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

ICICI Bank Business Loan Customer Care Number, Email, Application Status, Branches
City Customer Care Number
Agra 808-166-7777
Ahmedabad 079-33667777/ 079-44455000
Ambala 901-766-7777
Anand 800-066-7777
Aurangabad Bihar 902-166-7777
Bangalore 080-33667777/ 080-44455000
Bhilai 909-866-7777
Bhilwara 787-766-7777
Bhiwadi 787-766-7777
Bhopal 0755-3366777
Bhubaneswar Cuttack 0674-3366777
Bikaner 787-766-7777
Chandigarh 0172-3366777/ 0172-4445500
Chennai 044-33667777/ 044-44455000
Cochin 902-066-7777
Coimbatore 0730-566-7777
Dehradun 0135-3366777
Delhi 011-33667777/ 011-44455000
Durg 909-866-7777
Faridabad 901-766-7777
Gandhinagar 800-066-7777
Ghaziabad 808-166-7777
Goa 902-166-7777
Greater Noida 808-166-7777
Gurgaon 0124-3366777/ 0124- 4445500
Guwahati 986-466-7777
Gwalior 909-866-7777
Hyderabad 040-33667777/ 040-44455000
Indore 909-866-7777
Jabalpur 909-866-7777
Jaipur 0141-3366777/ 0141-4445500
Jalandhar 730-766-7777
Jodhpur 787-766-7777
Kanpur 808-166-7777
Karnal 901-766-7777
Kolhapur 902-166-7777
Kolkata 033-33667777/ 033-44455000
Kota 787-766-7777
Kozhikode 902-066-7777
Lucknow 0161-3366777/ 0161-4445500
Ludhiana 730-766-7777
Madurai 0730-566-7777
Meerut 808-166-7777
Mehsana 800-066-7777
Mohali Sas Nagar 730-766-7777
Mumbai 022-33667777/ 022-44455000
Mussoorie 808-166-7777
Nagpur 902-166-7777
Nashik 902-166-7777
Noida 808-166-7777
Noida Extn 808-166-7777
Panipat 901-766-7777
Patna 0612-3366777
Pondicherry 0730-566-7777
Pune 902-166-7777
Raipur 0771-3366777
Rajkot 800-066-7777
Ranchi 0651-3366777
Rohtak 901-766-7777
Roorkee 808-166-7777
Salem 0730-566-7777
Shimla 0177-3366777
Sonipat 901-766-7777
Surat 800-066-7777
Trichy 0730-566-7777
Udaipur 787-766-7777
Vadodara 800-066-7777
Varanasi 808-166-7777
Vijaywada 730-666-7777
Vizag 730-666-7777

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ICICI Business Loan News - Sep 2020
  • 2020-07-09 : Banks exceed digital transaction target set for 2019-20
    The government notified that 17 banks received an overall good rating for their performance on digital transactions in 2019-20, with ICICI Bank topping the list of 56 banks and closed wallets. The result is the indication of ameliorating banking services like providing retail and business loans digitally with ease.
  • 2020-06-01 : ICICI Bank extends moratorium on EMIs
    ICICI Bank has extended the moratorium on retail loans like home and personal loans along with business, mudra and car loans till August 31, the moratorium will be applicable for the principal and interest falling due between June 1 to August 31, 2020. According to the guidelines, The customer needs to submit the moratorium request at least five working days before EMI due date
  • 2020-05-14 : ICICI Bank pre-tax profit increased by 82% in Q4
    ICICI Bank pre-tax profit soared by 82% in Q4 bolstered by retail loans like home, personal and car loans along with business and mudra loans. The bank pre-tax profit stood at Rs 1,423 crore as opposed to Rs 782 crore in Q4FY19, while net profit was Rs 1,221 crore against Rs 969 crore.
  • 2020-05-11 : ICICI Bank reported pre-tax profit up 82% in Q4
    ICICI Bank reported an 82% jump in pre-tax profit. Further, the bank reported a 26% rise in net profit in the March quarter. The bank pre-tax profit stood at Rs 1,423 crore backed by retail loans like home and personal loan along with business loan and car loan, while net profit was Rs 1,221 crore against Rs 969 crore.
  • 2019-07-19 : Now MSMEs and self-employed can avail OD of up to Rs. 15 lakh from ICICI Bank
    Private sector lender, ICICI Bank has announced the launch of a digital platform, InstaBIZ. Using this facility, SMEs and self-employed customers can avail of overdraft (OD) of up to Rs. 15 lakh to perform their business transactions digitally and instantly.
*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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