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Corporation Business Loan EMI Calculator India Jul 2021

Business Loan EMI Calculator Corporation Bank

Last Updated 16th Jul 2021

Get monthly EMI as low as ₹ 1,849 per lakh on Corporation Bank business loan. Business loan EMI in Corporation 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₹ 8,958₹ 4,780₹ 1,849
₹ 5 Lakh₹ 44,788₹ 23,900₹ 9,246
₹ 10 Lakh₹ 89,576₹ 47,801₹ 18,492

Corporation 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 Corporation Bank Business Loan.

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Business Loan Calculator Corporation Bank

  • Business loan EMI (or equated monthly installment) is a fixed amount of money paid by you to Corporation 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.
  • Corporation Bank offers business loans with loan tenure up to 84 months that translates into a lowest loan EMI of ₹ 1,849 per lakh, which makes it affordable for business loan borrowers. Lowest Rate of interest offered by Corporation Bank on business loan is 13.55%.

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

Business loan EMI for ₹ 10 Lakh loan amount at lowest 13.55% interest rate offered by Corporation Bank for different tenures

1 year 2 year 7 year
Corporation Bank EMI for loan amount of ₹ 10 Lakh at 13.55% ₹ 89,576 ₹ 47,801 ₹ 18,492
Total amount you pay back to the bank including principal and interest ₹ 11,42,542 ₹ 13,05,402 ₹ 25,41,587
Interest you have to pay over loan tenure ₹ 1,42,542 ₹ 3,05,402 ₹ 15,41,587
  • 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 ₹ 18,492. However, you pay an interest of ₹ 15,41,587 on a ₹ 10 Lakh loan.
  • In contrast, if you take a ₹ 10 Lakh loan from Corporation Bank at the lowest loan rate offered for a period of 1 year, you pay a higher loan EMI of ₹ 89,576 and pay an interest of only ₹ 1,42,542 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 Corporation Bank Business Loan EMI

  • Loan amount - This is the amount borrower promises to repay to the bank with the interest applied. Corporation Bank gives minimum business loan of ₹ 2,00,000 up to an amount of ₹ 5,00,00,000.
  • 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 Corporation Bank is 13.55%. 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, Corporation Bank offers business loan for a maximum tenure of 48 months.

Corporation Bank Business Loan Amortization Calculator

Corporation Bank Business Loan amortization schedule gives a break up of your monthly EMI into interest and principal repayment. Corporation 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 Corporation Bank at an interest rate of 13.55%. EMI calculated for this loan amount is ₹ 23,772 and the total annual EMIs to be paid annually is ₹ 2,85,260. 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 ₹ 44,697 ₹ 97,933 ₹ 1,42,630 ₹ 6,02,067
2022 ₹ 68,442 ₹ 2,16,817 ₹ 2,85,260 ₹ 3,85,250
2023 ₹ 37,169 ₹ 2,48,091 ₹ 2,85,260 ₹ 1,37,158
2024 ₹ 5,471 ₹ 1,37,158 ₹ 1,42,630 ₹ 0

In the above illustration, on a Corporation Bank Business Loan of₹ 7 Lakh, taken at the lowest interest rate of 13.55, EMI paid is ₹ 23,772 and an annual total of EMIs is ₹ 2,85,260, the interest component is ₹ 82,568 while the principal component is ₹ 2,02,691 in year 1 of loan disbursement. You repay only 28.96% of the total principal after paying 12 EMIs during the first year.

Corporation Business Loan Calculator Formula

P*r* (1+r)^n/([(1+r)^n]-1)
Here is an illustration of how Corporation business loan EMI is calculated:
In above formula,
P = Loan amount. This can range from ₹ 2,00,000 to ₹ 5,00,00,000
r = Rate of interest per month. Current rate is 13.55%
n = tenure in month. For Corporation, this can be 48 months

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

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

Business Loan EMI (or equated monthly installment) is a fixed amount of money paid by you to Corporation 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 Corporation 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 Corporation Bank offering business loan with loan tenure up to 84 months, the loan EMI can be as low as ₹ 1,849 per lakh, to make it more affordable and convenient to meet your business needs. Rate of interest offered by Corporation Bank are as low as 13.55%. You can check EMI for other tenures using our Corporation 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 Corporation 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 Corporation 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, Corporation 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 Corporation 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?

Corporation 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 Corporation 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

Corporation Bank Business Loan Customer Care Toll Free Number
City Customer Care Number
Agra 1800-425-2407
Ahmedabad 1800-425-2407
Ambala 1800-425-2407
Anand 1800-425-2407
Aurangabad Bihar 1800-425-2407

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Corporation Business Loan News - Jul 2021
  • 2021-07-16 : UBI update on change in IFSC code for merged banks - Andhra Bank and Corporation Bank
    Union Bank of India (UBI) on Friday said the IFSC codes of the erstwhile e-Andhra Bank and e-Corporation Bank branches will change with effect from July 1, 2021. Customers of the erstwhile banks will have to get new cheque books with changed IFSC and MICR codes
  • 2019-06-10 : Corporation Bank plans to raise Rs. 4,000 crore capital in two years
    Public sector lender, Corporation Bank is planning to raise capital of up to Rs. 4,000 crore over two years to augment its retail loan growth. The lender is planning to look at combinations of equity, tier I capital based on market conditions. The bank has said that it will use the raised funds to expand its loan book that includes home loans and business loans.
  • 2019-05-28 : Corporation Bank launches loan scheme for MSMEs
    In a bid to help MSMEs, public sector lender, Corporation Bank has announced the launch of a scheme, SMESuvidha scheme to provide loans to the GST-registered MSMEs at an affordable rate of interest. With the launch of this new product, the lender is trying to improve the services and provide the best products to the MSME sector.
  • 2019-05-27 : Corporation Bank announces the launch of ‘Corp SME Suvidha’ for MSMEs
    Private sector lender, Corporation Bank has launched the unique product ‘Corp SME Suvidha’ for GST registered MSMEs. The product has been designed as a part of the bank’s efforts to improve the service and to provide the best products to the MSME sector. In addition, the bank has also taken several proactive initiatives for MSME, such as an online loan facility for MSME borrowers.
  • 2019-02-21 : Government infuses a capital of Rs. 9,086 crore in Corporation Bank
    Earlier this week, the government has infused a capital of Rs. 48,239 crore in 12 public sector banks. Among those public sector lenders, corporation bank was the one to get the highest round of capital infusion with Rs. 9,086 crore of funding followed by Allahabad Bank with Rs. 6,896 crore. The funding will help them to build a strong growth in their working capital and a scope of improvement in its banking services to meet the demands of the customers.
*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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