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Andhra Bank Business Loan EMI Calculator India Jan 2021

Business Loan EMI Calculator Andhra Bank

Last Updated 11th Jan 2021

Get monthly EMI as low as ₹ 2,419 per lakh on Andhra Bank business loan. Business loan EMI in Andhra 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 loan5 Year loan
₹ 1 Lakh₹ 9,061₹ 4,884₹ 2,419
₹ 5 Lakh₹ 45,306₹ 24,422₹ 12,093
₹ 10 Lakh₹ 90,613₹ 48,844₹ 24,185

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

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 Andhra Bank

  • Business loan EMI (or equated monthly installment) is a fixed amount of money paid by you to Andhra 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.
  • Andhra Bank offers business loans with loan tenure up to 60 months that translates into a lowest loan EMI of ₹ 2,419 per lakh, which makes it affordable for business loan borrowers. Lowest Rate of interest offered by Andhra Bank on business loan is 15.75%.

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

Business loan EMI for ₹ 10 Lakh loan amount at lowest 15.75% interest rate offered by Andhra Bank for different tenures

1 year 2 year 5 year
Andhra Bank EMI for loan amount of ₹ 10 Lakh at 15.75% ₹ 90,613 ₹ 48,844 ₹ 24,185
Total amount you pay back to the bank including principal and interest ₹ 11,67,049 ₹ 13,62,003 ₹ 21,64,937
Interest you have to pay over loan tenure ₹ 1,67,049 ₹ 3,62,003 ₹ 11,64,937
  • 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 5 years, you pay the lowest EMI of ₹ 24,185. However, you pay an interest of ₹ 11,64,937 on a ₹ 10 Lakh loan.
  • In contrast, if you take a ₹ 10 Lakh loan from Andhra Bank at the lowest loan rate offered for a period of 1 year, you pay a higher loan EMI of ₹ 90,613 and pay an interest of only ₹ 1,67,049 which is less than half of what you paid in a 5 year loan. Hence, it is advisable to choose your loan tenure wisely as longer tenure means high interest expenses.

Factors affecting Andhra Bank Business Loan EMI

  • Loan amount - This is the amount borrower promises to repay to the bank with the interest applied. Andhra Bank gives minimum business loan of ₹ 50,000 up to an amount of ₹ 5,00,000.
  • 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 Andhra Bank is 15.75%. 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, Andhra Bank offers business loan for a maximum tenure of 60 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 5 years at an interest rate of 13.50%. EMI calculated for this loan amount is ₹ 11,505 and the total annual EMIs to be paid annually is ₹ 1,38,059. The EMI schedule of loan for 5 years is explained below in the table –

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

Year Interest paid during the year Principal repaid during the year Total amount paid during the year (Interest + Principal) Outstanding Principal
2021 ₹ 62,966 ₹ 75,093 ₹ 1,38,059 ₹ 4,24,907
2022 ₹ 52,177 ₹ 85,882 ₹ 1,38,059 ₹ 3,39,025
2023 ₹ 39,838 ₹ 98,221 ₹ 1,38,059 ₹ 2,40,805
2024 ₹ 25,726 ₹ 1,12,333 ₹ 1,38,059 ₹ 1,28,472
2025 ₹ 9,587 ₹ 1,28,472 ₹ 1,38,059 -₹ 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 ₹ 11,505 and an annual total of EMIs is ₹ 1,38,059, the interest component is ₹ 62,966 while the principal component is ₹ 75,093 in year 1 of loan disbursement. You repay only 15.02% of the total principal after paying 12 EMIs during the first year.

In year 5, the interest component of EMI is around 6.94%, while the principal component is around 93.06%. Upto 5 years, you have cumulatively repaid 100% of your total Business Loan.

Andhra Bank Business Loan Calculator Formula

P*r* (1+r)^n/([(1+r)^n]-1)
Here is an illustration of how Andhra Bank business loan EMI is calculated:
In above formula,
P = Loan amount. This can range from ₹ 50,000 to ₹ 5,00,000
r = Rate of interest per month. Current rate is 15.75%
n = tenure in month. For Andhra Bank, this can be 60 months

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

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

Business Loan EMI (or equated monthly installment) is a fixed amount of money paid by you to Andhra 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 Andhra 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 Andhra Bank offering business loan with loan tenure up to 60 months, the loan EMI can be as low as ₹ 2,419 per lakh, to make it more affordable and convenient to meet your business needs. Rate of interest offered by Andhra Bank are as low as 15.75%. You can check EMI for other tenures using our Andhra 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 Andhra 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 Andhra 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, Andhra 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 Andhra 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?

Andhra 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 Andhra 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

Andhra Bank Business Loan Customer Care Number, Email, Application Status, Branches
City Customer Care Number
Agra 1800-425-2905
Ahmedabad 1800-425-2905
Ambala 1800-425-2905
Anand 1800-425-2905
Aurangabad Bihar 022-26876181
Bangalore 080-26578833
Bhilai 1800-425-2905
Bhilwara 1800-425-2905
Bhiwadi 022-26876181
Bhopal 1800-425-2905
Bhubaneswar Cuttack 1800-425-2905
Bikaner 1800-425-2905
Chandigarh 1800-425-2905
Chennai 044-24994924
Cochin 1800-425-2905
Coimbatore 044-24994924
Dehradun 1800-425-2905
Delhi 0124-2581936
Durg 1800-425-2905
Faridabad 0124-2581936
Gandhinagar 1800-425-2905
Ghaziabad 0124-2581936
Goa 1800-425-2905
Greater Noida 0124-2581936
Gurgaon 0124-2581936
Guwahati 1800-425-2905
Gwalior 1800-425-2905
Hyderabad 040-23210907
Indore 1800-425-2905
Jabalpur 1800-425-2905
Jaipur 1800-425-2905
Jalandhar 1800-425-2905
Jodhpur 1800-425-2905
Kanpur 1800-425-2905
Karnal 1800-425-2905
Kolhapur 022-26876181
Kolkata 033-22472068
Kota 1800-425-2905
Kozhikode 1800-425-2905
Lucknow 1800-425-2905
Ludhiana 1800-425-2905
Madurai 044-24994924
Meerut 1800-425-2905
Mehsana 1800-425-2905
Mohali Sas Nagar 1800-425-2905
Mumbai 022-26876181
Mussoorie 1800-425-2905
Nagpur 022-26876181
Nashik 022-26876181
Noida 0124-2581936
Noida Extn 0124-2581936
Panipat 1800-425-2905
Patna 1800-425-2905
Pondicherry 1800-425-2905
Pune 022-26876181
Raipur 1800-425-2905
Rajkot 1800-425-2905
Ranchi 1800-425-2905
Rohtak 1800-425-2905
Roorkee 1800-425-2905
Salem 044-24994924
Shimla 1800-425-2905
Sonipat 1800-425-2905
Surat 1800-425-2905
Trichy 044-24994924
Udaipur 1800-425-2905
Vadodara 1800-425-2905
Varanasi 1800-425-2905
Vijaywada 040-23210907
Vizag 040-23210907

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