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HDFC Business Loan EMI Calculator India Jul 2021

Business Loan EMI Calculator HDFC Bank

Last Updated 14th Jul 2021

Get monthly EMI as low as ₹ 2,628 per lakh on HDFC Bank business loan. Business loan EMI in HDFC 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 loan4 Year loan
₹ 1 Lakh₹ 8,880₹ 4,703₹ 2,628
₹ 5 Lakh₹ 44,401₹ 23,513₹ 13,142
₹ 10 Lakh₹ 88,802₹ 47,027₹ 26,285
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Business Loan Calculator HDFC Bank

  • Business loan EMI (or equated monthly installment) is a fixed amount of money paid by you to HDFC 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.
  • HDFC Bank offers business loans with loan tenure up to 48 months that translates into a lowest loan EMI of ₹ 2,628 per lakh, which makes it affordable for business loan borrowers. Lowest Rate of interest offered by HDFC Bank on business loan is 11.90%.

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

Business loan EMI for ₹ 10 Lakh loan amount at lowest 11.90% interest rate offered by HDFC Bank for different tenures

1 year 2 year 4 year
HDFC Bank EMI for loan amount of ₹ 10 Lakh at 11.90% ₹ 88,802 ₹ 47,027 ₹ 26,285
Total amount you pay back to the bank including principal and interest ₹ 11,24,416 ₹ 12,64,312 ₹ 15,98,486
Interest you have to pay over loan tenure ₹ 1,24,416 ₹ 2,64,312 ₹ 5,98,486
  • 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 4 years, you pay the lowest EMI of ₹ 26,285. However, you pay an interest of ₹ 5,98,486 on a ₹ 10 Lakh loan.
  • In contrast, if you take a ₹ 10 Lakh loan from HDFC Bank at the lowest loan rate offered for a period of 1 year, you pay a higher loan EMI of ₹ 88,802 and pay an interest of only ₹ 1,24,416 which is less than half of what you paid in a 4 year loan. Hence, it is advisable to choose your loan tenure wisely as longer tenure means high interest expenses.

Factors affecting HDFC Bank Business Loan EMI

  • Loan amount - This is the amount borrower promises to repay to the bank with the interest applied. HDFC Bank gives minimum business loan of ₹ 50,000 up to an amount of ₹ 50,00,000.
  • 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 HDFC Bank is 11.90%. 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, HDFC Bank offers business loan for a maximum tenure of 48 months.

HDFC Bank Business Loan Amortization Calculator

HDFC Bank Business Loan amortization schedule gives a break up of your monthly EMI into interest and principal repayment. HDFC 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 HDFC Bank at an interest rate of 11.90%. EMI calculated for this loan amount is ₹ 23,217 and the total annual EMIs to be paid annually is ₹ 2,78,599. 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 ₹ 39,197 ₹ 1,00,103 ₹ 1,39,300 ₹ 5,99,897
2022 ₹ 59,704 ₹ 2,18,895 ₹ 2,78,599 ₹ 3,81,002
2023 ₹ 32,187 ₹ 2,46,412 ₹ 2,78,599 ₹ 1,34,590
2024 ₹ 4,710 ₹ 1,34,590 ₹ 1,39,300 -₹ 0

In the above illustration, on a HDFC Bank Business Loan of₹ 7 Lakh, taken at the lowest interest rate of 11.90, EMI paid is ₹ 23,217 and an annual total of EMIs is ₹ 2,78,599, the interest component is ₹ 72,288 while the principal component is ₹ 2,06,311 in year 1 of loan disbursement. You repay only 29.47% of the total principal after paying 12 EMIs during the first year.

HDFC Business Loan Calculator Formula

P*r* (1+r)^n/([(1+r)^n]-1)
Here is an illustration of how HDFC business loan EMI is calculated:
In above formula,
P = Loan amount. This can range from ₹ 50,000 to ₹ 50,00,000
r = Rate of interest per month. Current rate is 11.90%
n = tenure in month. For HDFC, this can be 48 months

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

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

Business Loan EMI (or equated monthly installment) is a fixed amount of money paid by you to HDFC 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 HDFC 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 HDFC Bank offering business loan with loan tenure up to 48 months, the loan EMI can be as low as ₹ 2,628 per lakh, to make it more affordable and convenient to meet your business needs. Rate of interest offered by HDFC Bank are as low as 11.90%. You can check EMI for other tenures using our HDFC 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 HDFC 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 HDFC 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, HDFC 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 HDFC 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?

HDFC 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 HDFC 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

HDFC Bank Business Loan Customer Care Toll Free Number
City Customer Care Number
Agra 993-590-3333
Ahmedabad 079-61606161
Ambala 999-624-3333
Anand 079-61606161
Aurangabad Bihar 022-61606161

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HDFC Bank Business Loan News - Jul 2021
  • 2021-07-08 : HDFC Bank loan growth hit amidst covid-19 pandemic
    Private lender HDFC Bank numbers for the June quarter showed loan growth moderation and contraction in its retail credit book. The bank slowed its retail disbursements which were down 30% sequentially, reflecting the impact of the second Covid wave. The continued weakness in the retail segment led to retail segment share in total loans that include Personal Loan, Home Loan, Loan Against Property, Business Loan, Gold Loan, Two-wheeler Loan, Car Loan, Education Loan and Top-up Loan slipping down to 45% from 47% in June quarter last year.
  • 2021-05-28 : HDFC Bank commits Rs 100 cr towards COVID relief in FY22
    HDFC Bank committed Rs 100 crore for setting up medical infrastructure for COVID-19 relief in 2021-22. The bank is planning to set up 20 oxygen plants in hospitals besides three 100-bed COVID care facilities as part of the plan.
  • 2021-04-19 : HDFC Bank Q4 net profit rises 18% YoY to Rs 8,186.5 crore
    In Q3FY21, HDFC Bank had reported a net profit of Rs 8,758.3 crore and an operating profit of Rs 15,186 crore. The bank advances which include home, LAP, personal, two-wheeler, car, gold, education and doctor loan along with business and mudra loans aggregated to Rs 11,320 billion. Further, The bank’s deposits which include fixed and recurring deposits grew 16.3% at approximately Rs 13,350 billion as of March 31, 2021, as compared to Rs 11,475 billion year-on-year (YoY).
  • 2021-03-22 : HDFC Bank’s MSME book grows 30% to cross ₹2-lakh cr
    HDFC Bank’s MSME book grew 30% year-on-year to cross the ₹2-lakh-crore-mark as of December-end. It was mainly boosted by the pandemic-induced ECLG scheme under which the bank disbursed over ₹23,000 crore. The Bank clarified that the growth is also driven by a renewed push towards customers in semi-urban and rural areas.
  • 2021-02-12 : HDFC Bank leads in Covid-19 scheme loans
    HDFC Bank is leading in disbursements under the Emergency Credit Line Guarantee Scheme. The scheme was introduced by the government as a part of the Covid relief package. It involved a government guarantee for additional loans, up to Rs 3 lakh crore, extended to businesses facing stress due to the Covid pandemic.
*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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