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SBI Business Loan EMI Calculator India Jul 2019

Last Updated 10th Oct 2019

Get monthly EMI as low as Rs. 2,594 per lakh on SBI business loan. Business loan EMI in SBI depends upon loan annual turnover, gross receipts, number of years of ITR, loan amount, loan tenure and interest rate.

Business Loan EMI Calculator SBI

Loan Amount1 year loan2 year loan4 year loan
Rs. 5 LakhRs. 44,237 Rs. 23,350 Rs. 12,971
Rs. 10 LakhRs. 88,475 Rs. 46,701 Rs. 25,943
Rs. 20 LakhRs. 1.77 LakhRs. 93,401 Rs. 51,886
Business Loan EMI Calculator
Rs.

Business Loan Calculator SBI

  • Business loan EMI (or equated monthly installment) is a fixed amount of money paid by you to SBI 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.
  • SBI offers business loans with loan tenure up to 48 months that translates into a lowest loan EMI of Rs. 2,594 per lakh, which makes it affordable for business loan borrowers. Lowest Rate of interest offered by SBI on business loan is 11.20%.
Use EMI Calculator to Calculate your EMI on Business Loan at Different Tenure

Business loan EMI for Rs. 10 Lakh loan amount at lowest 11.20% interest rate offered by SBI for different tenures

1 year 2 year 4 year
SBI EMI for loan amount of Rs. 10 lakh at 11.20% Rs. 88,475 Rs. 46,701 Rs. 25,943
Total amount you pay back to the bank including principal and interest Rs. 11.17 Lakh Rs. 12.47 Lakh Rs. 15.56 Lakh
Interest you have to pay over loan tenure Rs. 1.17 Lakh Rs. 2.47 Lakh Rs. 5.56 Lakh
  • 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 Rs. 10 Lakh loan for a period of 4 years, you pay the lowest EMI of Rs. 25,943 . However, you pay an interest of Rs. 5.56 Lakh on a Rs. 10 Lakh loan.
  • In contrast, if you take a Rs. 10 Lakh loan from SBI at the lowest loan rate offered for a period of 1 year, you pay a higher loan EMI of Rs. 88,475 and pay an interest of only Rs. 1.17 Lakh 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 SBI Business Loan EMI

  • Loan amount - This is the amount borrower promises to repay to the bank with the interest applied. SBI gives minimum business loan of Rs. 5 Lakh up to an amount of Rs. 100 Cr.
  • 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 SBI is 11.20%. 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, SBI offers business loan for a maximum tenure of 48 months.

SBI Business Loan Calculator Formula

P*r* (1+r)^n/([(1+r)^n]-1)
Here is an illustration of how SBI business loan EMI is calculated:
In above formula,
P = Loan amount. This can range from Rs. 5 Lakh to Rs. 100 Cr
r = Rate of interest per month. Current rate is 11.20%
n = tenure in month. For SBI, this can be 48 months

Tips to decide the right amount of SBI Business Loan EMI

  • Ascertain the amount you need to borrow: It is important that before approaching SBI 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 SBI, 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 on SBI Business Loan Calculator

What is the calculation of SBI Business Loan EMI?
  • Business Loan EMI (or equated monthly installment) is a fixed amount of money paid by you to SBI 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 SBI 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 SBI offering business loan with loan tenure up to 48 months, the loan EMI can be as low as Rs. 2,594 per lakh, to make it more affordable and convenient to meet your business needs. Rate of interest offered by SBI are as low as 11.20%. You can check EMI for other tenures using our SBI 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 SBI 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 SBI 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, SBI 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 SBI, 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?
  • SBI 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 SBI loan EMI before taking a loan?

It is advised to calculate EMI prior to taking a loan. There are several benefits of calculating your SBI business loan EMI as discussed below -

  • 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

SBIBusiness Loan EMI Calculator Customer Care Number, Email, Application Status, Branches
City Customer Care Number
SBI 979-350-2211
SBI 972-434-2211
SBI 999-637-2211
SBI 972-434-2211
SBI 973-001-2211
SBI 973-193-2211
SBI 989-328-2211
SBI 979-933-2211
SBI 973-001-2211
SBI 989-328-2211
SBI 977-745-2211
SBI 979-933-2211
SBI 977-916-2211
SBI 979-094-2211
SBI 999-539-2211
SBI 979-191-2211
SBI 976-020-2211
SBI 995-880-2211
SBI 989-328-2211
SBI 995-880-2211
SBI 972-434-2211
SBI 995-880-2211
SBI 973-001-2211
SBI 995-880-2211
SBI 995-880-2211
SBI 995-705-2211
SBI 989-328-2211
SBI 995-919-2211
SBI 989-328-2211
SBI 989-328-2211
SBI 979-933-2211
SBI 977-916-2211
SBI 979-933-2211
SBI 979-350-2211
SBI 999-637-2211
SBI 973-001-2211
SBI 974-842-2211
SBI 979-933-2211
SBI 999-539-2211
SBI 979-350-2211
SBI 977-916-2211
SBI 979-191-2211
SBI 976-020-2211
SBI 972-434-2211
SBI 977-916-2211
SBI 998-755-2211
SBI 976-020-2211
SBI 973-001-2211
SBI 973-001-2211
SBI 995-880-2211
SBI 995-880-2211
SBI 999-637-2211
SBI 995-595-2211
SBI 979-191-2211
SBI 973-001-2211
SBI 989-328-2211
SBI 972-434-2211
SBI 995-595-2211
SBI 999-637-2211
SBI 976-020-2211
SBI 979-191-2211
SBI 980-509-2211
SBI 999-637-2211
SBI 972-434-2211
SBI 979-191-2211
SBI 979-933-2211
SBI 972-434-2211
SBI 979-350-2211
SBI 995-919-2211
SBI 995-919-2211
SBI Business Loan News - Jul 2019
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