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IDFC First Business Loan EMI Calculator India Jul 2021

Business Loan EMI Calculator IDFC First Bank

Last Updated 06th Jul 2021

Get monthly EMI as low as ₹ 2,990 per lakh on IDFC First Bank business loan. Business loan EMI in IDFC First 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₹ 9,216₹ 5,041₹ 2,990
₹ 5 Lakh₹ 46,078₹ 25,204₹ 14,950
₹ 10 Lakh₹ 92,157₹ 50,409₹ 29,900
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Business Loan Calculator IDFC First Bank

  • Business loan EMI (or equated monthly installment) is a fixed amount of money paid by you to IDFC First 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.
  • IDFC First Bank offers business loans with loan tenure up to 48 months that translates into a lowest loan EMI of ₹ 2,990 per lakh, which makes it affordable for business loan borrowers. Lowest Rate of interest offered by IDFC First Bank on business loan is 19.00%.

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

Business loan EMI for ₹ 10 Lakh loan amount at lowest 19.00% interest rate offered by IDFC First Bank for different tenures

1 year 2 year 4 year
IDFC First Bank EMI for loan amount of ₹ 10 Lakh at 19.00% ₹ 92,157 ₹ 50,409 ₹ 29,900
Total amount you pay back to the bank including principal and interest ₹ 12,03,971 ₹ 14,49,547 ₹ 21,01,186
Interest you have to pay over loan tenure ₹ 2,03,971 ₹ 4,49,547 ₹ 11,01,186
  • 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 ₹ 29,900. However, you pay an interest of ₹ 11,01,186 on a ₹ 10 Lakh loan.
  • In contrast, if you take a ₹ 10 Lakh loan from IDFC First Bank at the lowest loan rate offered for a period of 1 year, you pay a higher loan EMI of ₹ 92,157 and pay an interest of only ₹ 2,03,971 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 IDFC First Bank Business Loan EMI

  • Loan amount - This is the amount borrower promises to repay to the bank with the interest applied. IDFC First Bank gives minimum business loan of ₹ 1,00,000 up to an amount of ₹ 9,00,000.
  • 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 IDFC First Bank is 19.00%. 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, IDFC First Bank offers business loan for a maximum tenure of 48 months.

IDFC First Bank Business Loan Amortization Calculator

IDFC First Bank Business Loan amortization schedule gives a break up of your monthly EMI into interest and principal repayment. IDFC First 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 IDFC First Bank at an interest rate of 19.00%. EMI calculated for this loan amount is ₹ 25,659 and the total annual EMIs to be paid annually is ₹ 3,07,911. 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 ₹ 62,964 ₹ 90,991 ₹ 1,53,955 ₹ 6,09,009
2022 ₹ 98,059 ₹ 2,09,852 ₹ 3,07,911 ₹ 3,99,157
2023 ₹ 54,525 ₹ 2,53,386 ₹ 3,07,911 ₹ 1,45,771
2024 ₹ 8,184 ₹ 1,45,771 ₹ 1,53,955 ₹ 0

In the above illustration, on a IDFC First Bank Business Loan of₹ 7 Lakh, taken at the lowest interest rate of 19.00, EMI paid is ₹ 25,659 and an annual total of EMIs is ₹ 3,07,911, the interest component is ₹ 1,16,935 while the principal component is ₹ 1,90,976 in year 1 of loan disbursement. You repay only 27.28% of the total principal after paying 12 EMIs during the first year.

IDFC First Business Loan Calculator Formula

P*r* (1+r)^n/([(1+r)^n]-1)
Here is an illustration of how IDFC First business loan EMI is calculated:
In above formula,
P = Loan amount. This can range from ₹ 1,00,000 to ₹ 9,00,000
r = Rate of interest per month. Current rate is 19.00%
n = tenure in month. For IDFC First, this can be 48 months

Tips to decide the right amount of IDFC First Bank Business Loan EMI

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

Business Loan EMI (or equated monthly installment) is a fixed amount of money paid by you to IDFC First 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 IDFC First 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 IDFC First Bank offering business loan with loan tenure up to 48 months, the loan EMI can be as low as ₹ 2,990 per lakh, to make it more affordable and convenient to meet your business needs. Rate of interest offered by IDFC First Bank are as low as 19.00%. You can check EMI for other tenures using our IDFC First 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 IDFC First 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 IDFC First 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, IDFC First 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 IDFC First 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?

IDFC First 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 IDFC First 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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IDFC First Business Loan News - Jul 2021
  • 2021-06-14 : IDFC First Bank’s helping hand for the covid-affected families of employees
    To help the families of employees who lost their lives due to covid, IDFC First Bank is offering compensation of upto 4 times of the CTC along with a salary of two years. Along with that, the bank is also wavering the loans of such employees to reduce the burden on the employees’ family.
  • 2021-05-21 : IDFC First Bank profit surged 78% to Rs 128 crore
    IDFC First Bank reported a 78% jump in net profit at Rs 128 crore for the fourth quarter ended March 2021. The bank had posted a profit of Rs 72 crore during the corresponding January-March quarter a year ago. Total income during the fourth quarter rose to Rs 4,834 crore backed by Retail advances which include home, LAP, personal, two-wheeler, car, gold, education and doctor loan.
  • 2021-01-22 : IDFC First Bank retail loan surges 100%
    IDFC First Bank reported that its retail deposits which includes home, personal, car, two wheeler, gold and LAP increased 100% Y-o-Y. In addition to this, Customer Deposits of the Bank which includes FD and RDs increased to Rs. 77,289 Cr as on 31 December 2020 from Rs. 54,631 Cr as on 31 December 2019 . CASA ratio on outstanding deposits as on 31 December 2020 was 48.4%.
  • 2020-07-31 : IDFC First Bank Ltd Q1FY21 consolidated net profit at Rs. 100.07 crore
    IDFC Bank posted a net profit of Rs.100.07 crores for the period ended June 30, 2020, as against Rs.76.36 crores for the period ended March 31, 2020. The company bolstered by retails loans like home, personal, gold, car and two-wheeler loans along with the Business and mudra loans has reported total income of Rs.4413.19 crores during the period ended June 30, 2020 as compared to Rs.4553.07 crores during the period ended March 31, 2020.
*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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