Dhan Laxmi Business Loan EMI Calculator India Jul 2021

• Business loan EMI (or equated monthly installment) is a fixed amount of money paid by you to Dhan Laxmi 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.
• Dhan Laxmi Bank offers business loans with loan tenure up to 60 months that translates into a lowest loan EMI of ₹ 2,149 per lakh, which makes it affordable for business loan borrowers. Lowest Rate of interest offered by Dhan Laxmi Bank on business loan is 10.50%.

Business loan EMI for ₹ 10 Lakh loan amount at lowest 10.50% interest rate offered by Dhan Laxmi Bank for different tenures

	1 year	2 year	5 year
Dhan Laxmi Bank EMI for loan amount of ₹ 10 Lakh at 10.50%	₹ 88,149	₹ 46,376	₹ 21,494
Total amount you pay back to the bank including principal and interest	₹ 11,09,207	₹ 12,30,341	₹ 16,79,049
Interest you have to pay over loan tenure	₹ 1,09,207	₹ 2,30,341	₹ 6,79,049

• 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 ₹ 21,494. However, you pay an interest of ₹ 6,79,049 on a ₹ 10 Lakh loan.
• In contrast, if you take a ₹ 10 Lakh loan from Dhan Laxmi Bank at the lowest loan rate offered for a period of 1 year, you pay a higher loan EMI of ₹ 88,149 and pay an interest of only ₹ 1,09,207 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.

• Loan amount - This is the amount borrower promises to repay to the bank with the interest applied. Dhan Laxmi Bank gives minimum business loan of ₹ 10,00,000 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 Dhan Laxmi Bank is 10.50%. 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, Dhan Laxmi Bank offers business loan for a maximum tenure of 48 months.

Dhan Laxmi Bank Business Loan amortization schedule gives a break up of your monthly EMI into interest and principal repayment. Dhan Laxmi 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 Dhan Laxmi Bank at an interest rate of 10.50%. EMI calculated for this loan amount is ₹ 22,752 and the total annual EMIs to be paid annually is ₹ 2,73,021. 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	₹ 34,542	₹ 1,01,968	₹ 1,36,510	₹ 5,98,032
Jul	₹ 6,125	₹ 16,627	₹ 22,752	₹ 6,83,373
Aug	₹ 5,980	₹ 16,772	₹ 22,752	₹ 6,66,601
Sep	₹ 5,833	₹ 16,919	₹ 22,752	₹ 6,49,682
Oct	₹ 5,685	₹ 17,067	₹ 22,752	₹ 6,32,615
Nov	₹ 5,535	₹ 17,216	₹ 22,752	₹ 6,15,398
Dec	₹ 5,385	₹ 17,367	₹ 22,752	₹ 5,98,031
2022	₹ 52,375	₹ 2,20,645	₹ 2,73,021	₹ 3,77,387
Jan	₹ 5,233	₹ 17,519	₹ 22,752	₹ 5,80,512
Feb	₹ 5,079	₹ 17,672	₹ 22,752	₹ 5,62,840
Mar	₹ 4,925	₹ 17,827	₹ 22,752	₹ 5,45,013
Apr	₹ 4,769	₹ 17,983	₹ 22,752	₹ 5,27,031
May	₹ 4,612	₹ 18,140	₹ 22,752	₹ 5,08,890
Jun	₹ 4,453	₹ 18,299	₹ 22,752	₹ 4,90,591
Jul	₹ 4,293	₹ 18,459	₹ 22,752	₹ 4,72,132
Aug	₹ 4,131	₹ 18,621	₹ 22,752	₹ 4,53,512
Sep	₹ 3,968	₹ 18,783	₹ 22,752	₹ 4,34,728
Oct	₹ 3,804	₹ 18,948	₹ 22,752	₹ 4,15,781
Nov	₹ 3,638	₹ 19,114	₹ 22,752	₹ 3,96,667
Dec	₹ 3,471	₹ 19,281	₹ 22,752	₹ 3,77,386
2023	₹ 28,059	₹ 2,44,961	₹ 2,73,021	₹ 1,32,425
Jan	₹ 3,302	₹ 19,450	₹ 22,752	₹ 3,57,936
Feb	₹ 3,132	₹ 19,620	₹ 22,752	₹ 3,38,317
Mar	₹ 2,960	₹ 19,791	₹ 22,752	₹ 3,18,525
Apr	₹ 2,787	₹ 19,965	₹ 22,752	₹ 2,98,561
May	₹ 2,612	₹ 20,139	₹ 22,752	₹ 2,78,421
Jun	₹ 2,436	₹ 20,316	₹ 22,752	₹ 2,58,106
Jul	₹ 2,258	₹ 20,493	₹ 22,752	₹ 2,37,613
Aug	₹ 2,079	₹ 20,673	₹ 22,752	₹ 2,16,940
Sep	₹ 1,898	₹ 20,853	₹ 22,752	₹ 1,96,086
Oct	₹ 1,716	₹ 21,036	₹ 22,752	₹ 1,75,051
Nov	₹ 1,532	₹ 21,220	₹ 22,752	₹ 1,53,830
Dec	₹ 1,346	₹ 21,406	₹ 22,752	₹ 1,32,425
2024	₹ 4,085	₹ 1,32,425	₹ 1,36,510	₹ 0
Jan	₹ 1,159	₹ 21,593	₹ 22,752	₹ 1,10,832
Feb	₹ 970	₹ 21,782	₹ 22,752	₹ 89,050
Mar	₹ 779	₹ 21,973	₹ 22,752	₹ 67,077
Apr	₹ 587	₹ 22,165	₹ 22,752	₹ 44,913
May	₹ 393	₹ 22,359	₹ 22,752	₹ 22,554
Jun	₹ 197	₹ 22,554	₹ 22,752	₹ 0

In the above illustration, on a Dhan Laxmi Bank Business Loan of₹ 7 Lakh, taken at the lowest interest rate of 10.50, EMI paid is ₹ 22,752 and an annual total of EMIs is ₹ 2,73,021, the interest component is ₹ 63,612 while the principal component is ₹ 2,09,408 in year 1 of loan disbursement. You repay only 29.92% of the total principal after paying 12 EMIs during the first year.

P*r* (1+r)^n/([(1+r)^n]-1)
Here is an illustration of how Dhan Laxmi business loan EMI is calculated:
In above formula,
P = Loan amount. This can range from ₹ 10,00,000 to ₹ 5,00,00,000
r = Rate of interest per month. Current rate is 10.50%
n = tenure in month. For Dhan Laxmi, this can be 48 months

• Ascertain the amount you need to borrow: It is important that before approaching Dhan Laxmi 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 Dhan Laxmi 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.

✅What is the calculation of Dhan Laxmi Bank Business Loan EMI?

Business Loan EMI (or equated monthly installment) is a fixed amount of money paid by you to Dhan Laxmi 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 Dhan Laxmi 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 Dhan Laxmi Bank offering business loan with loan tenure up to 60 months, the loan EMI can be as low as ₹ 2,149 per lakh, to make it more affordable and convenient to meet your business needs. Rate of interest offered by Dhan Laxmi Bank are as low as 10.50%. You can check EMI for other tenures using our Dhan Laxmi 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 Dhan Laxmi 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 Dhan Laxmi 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, Dhan Laxmi 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 Dhan Laxmi 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?

Dhan Laxmi 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 Dhan Laxmi 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.

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