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Bank of Baroda Business Loan EMI Calculator India Apr 2021

Business Loan EMI Calculator Bank of Baroda

Last Updated 14th Apr 2021

Get monthly EMI as low as ₹ 3,423 per lakh on Bank of Baroda business loan. Business loan EMI in Bank of Baroda 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₹ 8,983₹ 4,806₹ 3,423
₹ 5 Lakh₹ 44,917₹ 24,030₹ 17,113
₹ 10 Lakh₹ 89,834₹ 48,060₹ 34,226
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Business Loan Calculator Bank of Baroda

  • Business loan EMI (or equated monthly installment) is a fixed amount of money paid by you to Bank of Baroda 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.
  • Bank of Baroda offers business loans with loan tenure up to 36 months that translates into a lowest loan EMI of ₹ 3,423 per lakh, which makes it affordable for business loan borrowers. Lowest Rate of interest offered by Bank of Baroda on business loan is 14.10%.

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

Business loan EMI for ₹ 10 Lakh loan amount at lowest 14.10% interest rate offered by Bank of Baroda for different tenures

1 year 2 year 3 year
Bank of Baroda EMI for loan amount of ₹ 10 Lakh at 14.10% ₹ 89,834 ₹ 48,060 ₹ 34,226
Total amount you pay back to the bank including principal and interest ₹ 11,48,632 ₹ 13,19,356 ₹ 15,15,454
Interest you have to pay over loan tenure ₹ 1,48,632 ₹ 3,19,356 ₹ 5,15,454
  • 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 ₹ 34,226. However, you pay an interest of ₹ 5,15,454 on a ₹ 10 Lakh loan.
  • In contrast, if you take a ₹ 10 Lakh loan from Bank of Baroda at the lowest loan rate offered for a period of 1 year, you pay a higher loan EMI of ₹ 89,834 and pay an interest of only ₹ 1,48,632 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 Bank of Baroda Business Loan EMI

  • Loan amount - This is the amount borrower promises to repay to the bank with the interest applied. Bank of Baroda gives minimum business loan of ₹ 1,00,000 up to an amount of ₹ 2,00,000.
  • 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 Bank of Baroda is 14.10%. 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, Bank of Baroda 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 ₹ 6 Lakh for 4 years at an interest rate of 13.50%. EMI calculated for this loan amount is ₹ 16,246 and the total annual EMIs to be paid annually is ₹ 1,94,950. The EMI schedule of loan for 4 years is explained below in the table –

Amortization Schedule for a Business Loan of ₹ 6 Lakh over the 4 years

Year Interest paid during the year Principal repaid during the year Total amount paid during the year (Interest + Principal) Outstanding Principal
2021 ₹ 56,802 ₹ 89,411 ₹ 1,46,212 ₹ 5,10,589
2022 ₹ 60,832 ₹ 1,34,117 ₹ 1,94,950 ₹ 3,76,472
2023 ₹ 41,563 ₹ 1,53,387 ₹ 1,94,950 ₹ 2,23,085
2024 ₹ 19,525 ₹ 1,75,424 ₹ 1,94,950 ₹ 47,661
2025 ₹ 1,076 ₹ 47,661 ₹ 48,737 -₹ 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 ₹ 6 Lakh, taken at the lowest interest rate of 13.50%, EMI paid is ₹ 16,246 and an annual total of EMIs is ₹ 1,94,950, the interest component is ₹ 73,678 while the principal component is ₹ 1,21,271 in year 1 of loan disbursement. You repay only 20.21% of the total principal after paying 12 EMIs during the first year.

In year 4, the interest component of EMI is around 6.94%, while the principal component is around 93.06%. Upto 4 years, you have cumulatively repaid 100% of your total Business Loan.

Bank of Baroda Business Loan Calculator Formula

P*r* (1+r)^n/([(1+r)^n]-1)
Here is an illustration of how Bank of Baroda business loan EMI is calculated:
In above formula,
P = Loan amount. This can range from ₹ 1,00,000 to ₹ 2,00,000
r = Rate of interest per month. Current rate is 14.10%
n = tenure in month. For Bank of Baroda, this can be 36 months

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

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

Business Loan EMI (or equated monthly installment) is a fixed amount of money paid by you to Bank of Baroda 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 Bank of Baroda 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 Bank of Baroda offering business loan with loan tenure up to 36 months, the loan EMI can be as low as ₹ 3,423 per lakh, to make it more affordable and convenient to meet your business needs. Rate of interest offered by Bank of Baroda are as low as 14.10%. You can check EMI for other tenures using our Bank of Baroda 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 Bank of Baroda 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 Bank of Baroda 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, Bank of Baroda 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 Bank of Baroda, 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?

Bank of Baroda 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 Bank of Baroda 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

Bank of Baroda Business Loan Customer Care Number, Email, Application Status, Branches
City Customer Care Number
Agra 0562-253567
Ahmedabad 1800-223-344
Ambala 1800-223-344
Anand 0265-2361852
Aurangabad Bihar 0832-224003
Bangalore 080-22224746
Bhilai 1800-223-344
Bhilwara 1800-102-4455
Bhiwadi 0832-224003
Bhopal 0755-556274
Bhubaneswar Cuttack 0674-2517435
Bikaner 1800-102-4455
Chandigarh 0172-701617
Chennai 044-23454249
Cochin 0484-4027903
Coimbatore 0422-2303735
Dehradun 05946-22178
Delhi 011-3319192
Durg 1800-223-344
Faridabad 0129-2412681
Gandhinagar 0265-2361852
Ghaziabad 0120-2790111
Goa 0832-224003
Greater Noida 011-3319192
Gurgaon 011-3319192
Guwahati 0361-2540475
Gwalior 1800-223-344
Hyderabad 1800-223-344
Indore 1800-223-344
Jabalpur 1800-223-344
Jaipur 0141-363056
Jalandhar 0172-701617
Jodhpur 0291-550084
Kanpur 0512-215655
Karnal 0172-701617
Kolhapur 0832-224003
Kolkata 1800-223-344
Kota 0291-550084
Kozhikode 0484-4027903
Lucknow 0522-206028
Ludhiana 0172-701617
Madurai 0422-2303735
Meerut 0562-253567
Mehsana 0265-2361852
Mohali Sas Nagar 0172-701617
Mumbai 022-22614706
Mussoorie 05946-22178
Nagpur 0712-527466
Nashik 0712-527466
Noida 011-3319192
Noida Extn 011-3319192
Panipat 1800-223-344
Patna 0612-2452336
Pondicherry 1800-223-344
Pune 020-5466917
Raipur 0771-526081
Rajkot 0281-225686
Ranchi 0657-2426802
Rohtak 1800-223-344
Roorkee 05946-22178
Salem 0422-2303735
Shimla 1800-223-344
Sonipat 1800-223-344
Surat 0261-3462216
Trichy 0422-2303735
Udaipur 0294-522203
Vadodara 0265-2361852
Varanasi 0542-2366349
Vijaywada 040-23421603
Vizag 040-23421603

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Bank of Baroda Business Loan News - Apr 2021
  • 2021-03-17 : BOB to focus on new digital platform to expand retail lending
    Bank of Baroda is planning to expand its retail loans portfolio which include home, personal, LAP, gold, two-wheeler and car loans through a self made digital lending platform. The digital platform assesses credit risk through varied public and private data points like bank account statements, tax statements and consumption trends.
  • 2021-01-28 : Bank of Baroda reported Q3 net profit of ₹1,061 crore
    Bank of Baroda posted a net profit of ₹1,061 crore backed by home, personal, car, two-wheeler and gold loans along with business and mudra loans for the third quarter ended December 31, 2020 as compared to a net loss of ₹1,407 crore due to a sharp reduction in provisioning for bad loans. Total income was lower at ₹20,664 crore as compared to ₹21,809 crore in the year earlier.
  • 2020-10-30 : Bank of Baroda Q2 profit surges 128%
    Bank of Baroda reported a net profit of ₹1,679 crores for the quarter ending 30 September. Net interest income during the quarter grew by 6.8% to ₹7,508 crores. The consolidated net profit stood at ₹1,771 crores in the September quarter. Further, the advances backed by retail loans like home, personal, car, two-wheeler and gold loans along with business and mudra loans increased by 5.3%. CASA ratio increased to 39.78%, up by 190 bps year-on-year.
  • 2020-08-11 : Bank of Baroda reported a net loss of ₹864 cr in Q1
    Bank of Baroda posted a net loss of ₹864 crores for the three months to June, owing to higher provisions for loans. Net interest income backed by retail loans like home, personal, gold, car, two-wheeler and gold loans along with business and mudra loans increased 5% y-o-y to ₹6,816 crores in Q1 FY21. Further, The total advances grew 8.6% y-o-y to Rs. 7.36 trillion.
  • 2019-09-13 : Banks and NBFCs sign pacts to promote Retail and Business loans
    In a bid to improve the lowering credit markets, Banks and NBFCs have joined hands to promote loan products in the market. As per the tie-up State Bank of India and Central Bank of India has collaborated with ECL Finance, and Bank of Baroda is planning it tie-up with Srei Equipment Finance among others.
*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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