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IDBI Business Loan EMI Calculator India Jul 2021

Business Loan EMI Calculator IDBI Bank

Last Updated 19th Jul 2021

Get monthly EMI as low as ₹ 2,237 per lakh on IDBI Bank business loan. Business loan EMI in IDBI 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₹ 8,897₹ 4,719₹ 2,237
₹ 5 Lakh₹ 44,483₹ 23,595₹ 11,185
₹ 10 Lakh₹ 88,966₹ 47,190₹ 22,371
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Business Loan Calculator IDBI Bank

  • Business loan EMI (or equated monthly installment) is a fixed amount of money paid by you to IDBI 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.
  • IDBI Bank offers business loans with loan tenure up to 60 months that translates into a lowest loan EMI of ₹ 2,237 per lakh, which makes it affordable for business loan borrowers. Lowest Rate of interest offered by IDBI Bank on business loan is 12.25%.

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

Business loan EMI for ₹ 10 Lakh loan amount at lowest 12.25% interest rate offered by IDBI Bank for different tenures

1 year 2 year 5 year
IDBI Bank EMI for loan amount of ₹ 10 Lakh at 12.25% ₹ 88,966 ₹ 47,190 ₹ 22,371
Total amount you pay back to the bank including principal and interest ₹ 11,28,243 ₹ 12,72,933 ₹ 18,28,157
Interest you have to pay over loan tenure ₹ 1,28,243 ₹ 2,72,933 ₹ 8,28,157
  • 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 ₹ 22,371. However, you pay an interest of ₹ 8,28,157 on a ₹ 10 Lakh loan.
  • In contrast, if you take a ₹ 10 Lakh loan from IDBI Bank at the lowest loan rate offered for a period of 1 year, you pay a higher loan EMI of ₹ 88,966 and pay an interest of only ₹ 1,28,243 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 IDBI Bank Business Loan EMI

  • Loan amount - This is the amount borrower promises to repay to the bank with the interest applied. IDBI 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 IDBI Bank is 12.25%. 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, IDBI Bank offers business loan for a maximum tenure of 48 months.

IDBI Bank Business Loan Amortization Calculator

IDBI Bank Business Loan amortization schedule gives a break up of your monthly EMI into interest and principal repayment. IDBI 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 IDBI Bank at an interest rate of 12.25%. EMI calculated for this loan amount is ₹ 23,334 and the total annual EMIs to be paid annually is ₹ 2,80,004. 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 ₹ 40,362 ₹ 99,640 ₹ 1,40,002 ₹ 6,00,360
2022 ₹ 61,549 ₹ 2,18,456 ₹ 2,80,004 ₹ 3,81,904
2023 ₹ 33,233 ₹ 2,46,771 ₹ 2,80,004 ₹ 1,35,133
2024 ₹ 4,869 ₹ 1,35,133 ₹ 1,40,002 ₹ 0

In the above illustration, on a IDBI Bank Business Loan of₹ 7 Lakh, taken at the lowest interest rate of 12.25, EMI paid is ₹ 23,334 and an annual total of EMIs is ₹ 2,80,004, the interest component is ₹ 74,464 while the principal component is ₹ 2,05,541 in year 1 of loan disbursement. You repay only 29.36% of the total principal after paying 12 EMIs during the first year.

IDBI Business Loan Calculator Formula

P*r* (1+r)^n/([(1+r)^n]-1)
Here is an illustration of how IDBI 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 12.25%
n = tenure in month. For IDBI, this can be 48 months

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

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

Business Loan EMI (or equated monthly installment) is a fixed amount of money paid by you to IDBI 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 IDBI 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 IDBI Bank offering business loan with loan tenure up to 60 months, the loan EMI can be as low as ₹ 2,237 per lakh, to make it more affordable and convenient to meet your business needs. Rate of interest offered by IDBI Bank are as low as 12.25%. You can check EMI for other tenures using our IDBI 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 IDBI 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 IDBI 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, IDBI 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 IDBI 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?

IDBI 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 IDBI 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

IDBI Bank Business Loan Customer Care Toll Free Number
City Customer Care Number
Agra 1800-200-1947
Ahmedabad 1800-200-1947
Ambala 1800-200-1947
Anand 1800-200-1947
Aurangabad Bihar 022 2207 8732

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IDBI Business Loan News - Jul 2021
  • 2021-01-15 : IDBI Bank reported Rs 378-crore profit
    IDBI Bank posted a net profit of Rs 378 crore for the December quarter. The loans which includes home, LAP, personal, car, two-wheeler, gold, education and doctor loan along with business and mudra loans fell 7% to Rs 1.6 lakh crore (y-o-y) in December 2020. The bank’s total deposits which includes fixed and recurring deposits rose 2.85% y-o-y to Rs 2.24 lakh crore at the end of December 2020. In addition to this, CASA improved to 48.97% as on December 31, 2020.
  • 2020-07-28 : IDBI Bank reported Q1 net profit of ₹144 crore
    IDBI Bank reported Rs 144 crore net profit for June quarter on account of a reversal of Rs 1335 crore of bad loan provisioning. It is IDBI second successive net profit after 13 consecutive quarters of loss. CASA increased to ₹ 1,04,315 crore and cost of deposit which includes fixed and recurring deposits improved by 64 bps to 4.65%. In addition to this, NII bolstered by home, personal, gold, car and two-wheeler loan along with business and mudra loans stood at ₹ 1,773 crores.
  • 2017-06-03 : IDBI Bank to sell Rs. 5,000 crore of non-core assets
    IDBI Bank has announced that it will sell Rs. 5,000 crore of its non-core assets. The bank has decided to take this move after RBI has invoked prompt corrective action (PCA) against it over rising non-performing assets (NPAs) and negative return on assets (RoAs). Simultaneously, the bank is also planning to achieve strong growth in its retail and priority sector lendings.
  • 2017-05-26 : IDBI Bank crafts turnaround strategy with focus on raising capital and NPA recovery
    IDBI Bank has set out a turnaround plan with a focus on raising additional capital and recovering its non-performing assets. Simultaneously, it is also planning to restrict its growth in corporate loan book and continue its focus on increasing retail and priority sector lendings. With this move, the bank will be able to improve its financial position by re-balancing its loan portfolio.
*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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