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Allahabad Bank Business Loan EMI Calculator India Jul 2021

Business Loan EMI Calculator Allahabad Bank

Last Updated 15th Jul 2021

Get monthly EMI as low as ₹ 1,902 per lakh on Allahabad Bank business loan. Business loan EMI in Allahabad 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 loan7 Year loan
₹ 1 Lakh₹ 9,002₹ 4,825₹ 1,902
₹ 5 Lakh₹ 45,011₹ 24,125₹ 9,509
₹ 10 Lakh₹ 90,023₹ 48,249₹ 19,017

Allahabad Bank has merged into Indian Bank on April 1, 2020. The interest rates of Indian Bank will now be applicable on Allahabad Bank Business Loan.

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Business Loan Calculator Allahabad Bank

  • Business loan EMI (or equated monthly installment) is a fixed amount of money paid by you to Allahabad 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.
  • Allahabad Bank offers business loans with loan tenure up to 84 months that translates into a lowest loan EMI of ₹ 1,902 per lakh, which makes it affordable for business loan borrowers. Lowest Rate of interest offered by Allahabad Bank on business loan is 14.50%.

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

Business loan EMI for ₹ 10 Lakh loan amount at lowest 14.50% interest rate offered by Allahabad Bank for different tenures

1 year 2 year 7 year
Allahabad Bank EMI for loan amount of ₹ 10 Lakh at 14.50% ₹ 90,023 ₹ 48,249 ₹ 19,017
Total amount you pay back to the bank including principal and interest ₹ 11,53,077 ₹ 13,29,586 ₹ 27,10,237
Interest you have to pay over loan tenure ₹ 1,53,077 ₹ 3,29,586 ₹ 17,10,237
  • 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 7 years, you pay the lowest EMI of ₹ 19,017. However, you pay an interest of ₹ 17,10,237 on a ₹ 10 Lakh loan.
  • In contrast, if you take a ₹ 10 Lakh loan from Allahabad Bank at the lowest loan rate offered for a period of 1 year, you pay a higher loan EMI of ₹ 90,023 and pay an interest of only ₹ 1,53,077 which is less than half of what you paid in a 7 year loan. Hence, it is advisable to choose your loan tenure wisely as longer tenure means high interest expenses.

Factors affecting Allahabad Bank Business Loan EMI

  • Loan amount - This is the amount borrower promises to repay to the bank with the interest applied. Allahabad Bank gives minimum business loan of ₹ 1,00,000 up to an amount of ₹ 20,00,000.
  • 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 Allahabad Bank is 14.50%. 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, Allahabad Bank offers business loan for a maximum tenure of 48 months.

Allahabad Bank Business Loan Amortization Calculator

Allahabad Bank Business Loan amortization schedule gives a break up of your monthly EMI into interest and principal repayment. Allahabad Bank gives you a detailed amortisation schedule with the sanction letter and you can calculate the total interest outgo as well as the pace at which your loan amount will be repaid during the loan tenure.

How to read an amortization schedule

Suppose if you take a Business Loan of ₹ 7 Lakh for 3 years from Allahabad Bank at an interest rate of 14.50%. EMI calculated for this loan amount is ₹ 24,095 and the total annual EMIs to be paid annually is ₹ 2,89,136. The EMI schedule of loan for 3 years is explained below in the table –

Amortization Schedule for a Business Loan of ₹ 7 Lakh over the 3 years

Year Interest paid during the year Principal repaid during the year Total amount paid during the year (Interest + Principal) Outstanding Principal
2021 ₹ 47,870 ₹ 96,698 ₹ 1,44,568 ₹ 6,03,302
2022 ₹ 73,522 ₹ 2,15,614 ₹ 2,89,136 ₹ 3,87,688
2023 ₹ 40,094 ₹ 2,49,042 ₹ 2,89,136 ₹ 1,38,646
2024 ₹ 5,922 ₹ 1,38,646 ₹ 1,44,568 -₹ 0

In the above illustration, on a Allahabad Bank Business Loan of₹ 7 Lakh, taken at the lowest interest rate of 14.50, EMI paid is ₹ 24,095 and an annual total of EMIs is ₹ 2,89,136, the interest component is ₹ 88,514 while the principal component is ₹ 2,00,622 in year 1 of loan disbursement. You repay only 28.66% of the total principal after paying 12 EMIs during the first year.

Allahabad Bank Business Loan Calculator Formula

P*r* (1+r)^n/([(1+r)^n]-1)
Here is an illustration of how Allahabad Bank business loan EMI is calculated:
In above formula,
P = Loan amount. This can range from ₹ 1,00,000 to ₹ 20,00,000
r = Rate of interest per month. Current rate is 14.50%
n = tenure in month. For Allahabad Bank, this can be 48 months

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

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

Business Loan EMI (or equated monthly installment) is a fixed amount of money paid by you to Allahabad 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 Allahabad 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 Allahabad Bank offering business loan with loan tenure up to 84 months, the loan EMI can be as low as ₹ 1,902 per lakh, to make it more affordable and convenient to meet your business needs. Rate of interest offered by Allahabad Bank are as low as 14.50%. You can check EMI for other tenures using our Allahabad 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 Allahabad 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 Allahabad 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, Allahabad 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 Allahabad 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?

Allahabad 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 Allahabad 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

Allahabad Bank Business Loan Customer Care Toll Free Number
City Customer Care Number
Agra 0562-2582010
Ahmedabad 079-26442199
Ambala 0172-2709458
Anand 079-26442199
Aurangabad Bihar 022-24921986

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Allahabad Bank Business Loan News - Jul 2021
  • 2021-07-15 : Indian Bank merger with Allahabad Bank - Change in IFSC
    The Indian Bank, which has merged with the Allahabad Bank, carried out a software migration over the weekend. As the merger got completed, new rules had been issued by the bank with regard to its services. Existing customers were asked on July 1 to get a new IFSC code to carry out online transactions smoothly.
  • 2020-04-01 : Allahabad Bank to merge with Indian Bank
    With effect from 1 April, Allahabad Bank will merge with Indian Bank, creating an entity with over 6,000 branches, 4,800 ATMs, 43,000 employees, 120 million customers and business mix of Rs 8 trillion. The integration offers the bank to provide retail loans like home and personal loan along with business loans.
  • 2019-09-19 : Allahabad Bank links loans and deposits with external benchmarks
    In order to fulfill the guidelines set by RBI, Allahabad Bank is set to launch retail and business loan products linked with external benchmarks. The retail and MSME loans will be linked to external benchmarks like RBI repo rate and three-month MIBOR. Apart from that, all savings and long term fixed deposit rates will be linked to RBI’s repo rate.
  • 2018-05-15 : Allahabad Bank barred from granting fresh loans
    Allahabad Bank has been restricted from granting loans and raising high-cost deposits by the RBI. The bank cannot expand its loans, nor make any fresh capital investments. Allahabad Bank had reported net loss of around Rs 3,510 crore for the March quarter due to more than three-time rise in its provisions for bad loans.
  • 2018-03-19 : Allahabad Bank sanctions Rs 1003 crore in loans under a mega camp for MSME
    Allahabad Bank has sanctioned Rs 1,003 crore in loans to 8289 MSME beneficiaries, which included beneficiaries under Pradhan Mantri Mudra Yojana (MUDRA) and under Stand-up India Scheme. Further, competitive rate of interest for MSME and retail loans have been offered by bank.
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
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