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IOB Business Loan EMI Calculator India Apr 2021

Business Loan EMI Calculator Indian Overseas Bank

Last Updated 07th Jan 2021

Get monthly EMI as low as ₹ 2,374 per lakh on Indian Overseas Bank business loan. Business loan EMI in Indian Overseas 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₹ 9,021₹ 4,844₹ 2,374
₹ 5 Lakh₹ 45,106₹ 24,220₹ 11,869
₹ 10 Lakh₹ 90,211₹ 48,439₹ 23,737
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Business Loan Calculator Indian Overseas Bank

  • Business loan EMI (or equated monthly installment) is a fixed amount of money paid by you to Indian Overseas 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.
  • Indian Overseas Bank offers business loans with loan tenure up to 60 months that translates into a lowest loan EMI of ₹ 2,374 per lakh, which makes it affordable for business loan borrowers. Lowest Rate of interest offered by Indian Overseas Bank on business loan is 14.90%.

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

Business loan EMI for ₹ 10 Lakh loan amount at lowest 14.90% interest rate offered by Indian Overseas Bank for different tenures

1 year 2 year 5 year
Indian Overseas Bank EMI for loan amount of ₹ 10 Lakh at 14.90% ₹ 90,211 ₹ 48,439 ₹ 23,737
Total amount you pay back to the bank including principal and interest ₹ 11,57,534 ₹ 13,39,885 ₹ 20,78,112
Interest you have to pay over loan tenure ₹ 1,57,534 ₹ 3,39,885 ₹ 10,78,112
  • 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 ₹ 23,737. However, you pay an interest of ₹ 10,78,112 on a ₹ 10 Lakh loan.
  • In contrast, if you take a ₹ 10 Lakh loan from Indian Overseas Bank at the lowest loan rate offered for a period of 1 year, you pay a higher loan EMI of ₹ 90,211 and pay an interest of only ₹ 1,57,534 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 Indian Overseas Bank Business Loan EMI

  • Loan amount - This is the amount borrower promises to repay to the bank with the interest applied. Indian Overseas Bank gives minimum business loan of ₹ 50,000 up to an amount of ₹ 10,00,000.
  • 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 Indian Overseas Bank is 14.90%. 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, Indian Overseas Bank offers business loan for a maximum tenure of 60 months.

Business Loan Amortization Calculator

An amortization schedule is a table of periodic loan payments that shows the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term.

In the Amortization schedule, your Business Loan monthly EMI will be equal, but the component of EMI, which consists of interest payment and principal payment will not remain the same every month, it keeps on changing.

Illustration: How to read an amortization schedule

Suppose if you take a Business Loan of ₹ 6 Lakh for 4 years at an interest rate of 13.50%. EMI calculated for this loan amount is ₹ 16,246 and the total annual EMIs to be paid annually is ₹ 1,94,950. The EMI schedule of loan for 4 years is explained below in the table –

Amortization Schedule for a Business Loan of ₹ 6 Lakh over the 4 years

Year Interest paid during the year Principal repaid during the year Total amount paid during the year (Interest + Principal) Outstanding Principal
2021 ₹ 56,802 ₹ 89,411 ₹ 1,46,212 ₹ 5,10,589
2022 ₹ 60,832 ₹ 1,34,117 ₹ 1,94,950 ₹ 3,76,472
2023 ₹ 41,563 ₹ 1,53,387 ₹ 1,94,950 ₹ 2,23,085
2024 ₹ 19,525 ₹ 1,75,424 ₹ 1,94,950 ₹ 47,661
2025 ₹ 1,076 ₹ 47,661 ₹ 48,737 -₹ 0

Each Business Loan EMI consists of both amounts of interest as well as the principal repaid. The interest component of EMI goes down while the principal component goes up in both cases while doing the calculation.

In the above illustration, on a Business Loan of ₹ 6 Lakh, taken at the lowest interest rate of 13.50%, EMI paid is ₹ 16,246 and an annual total of EMIs is ₹ 1,94,950, the interest component is ₹ 73,678 while the principal component is ₹ 1,21,271 in year 1 of loan disbursement. You repay only 20.21% of the total principal after paying 12 EMIs during the first year.

In year 4, the interest component of EMI is around 6.94%, while the principal component is around 93.06%. Upto 4 years, you have cumulatively repaid 100% of your total Business Loan.

IOB Business Loan Calculator Formula

P*r* (1+r)^n/([(1+r)^n]-1)
Here is an illustration of how IOB business loan EMI is calculated:
In above formula,
P = Loan amount. This can range from ₹ 50,000 to ₹ 10,00,000
r = Rate of interest per month. Current rate is 14.90%
n = tenure in month. For IOB, this can be 60 months

Tips to decide the right amount of Indian Overseas Bank Business Loan EMI

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

Business Loan EMI (or equated monthly installment) is a fixed amount of money paid by you to Indian Overseas 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 Indian Overseas 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 Indian Overseas Bank offering business loan with loan tenure up to 60 months, the loan EMI can be as low as ₹ 2,374 per lakh, to make it more affordable and convenient to meet your business needs. Rate of interest offered by Indian Overseas Bank are as low as 14.90%. You can check EMI for other tenures using our Indian Overseas 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 Indian Overseas 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 Indian Overseas 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, Indian Overseas 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 Indian Overseas 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?

Indian Overseas 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 Indian Overseas 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

Indian Overseas Bank Business Loan Customer Care Number, Email, Application Status, Branches
City Customer Care Number
Agra 1800-425-4445/ 044-2851 9639
Ahmedabad 1800-425-4445/ 044-2851 9639
Ambala 1800-425-4445/ 044-2851 9639
Anand 1800-425-4445/ 044-2851 9639
Aurangabad Bihar 1800-425-4445/ 044-2851 9639
Bangalore 1800-425-4445/ 044-2851 9639
Bhilai 1800-425-4445/ 044-2851 9639
Bhilwara 1800-425-4445/ 044-2851 9639
Bhiwadi 1800-425-4445/ 044-2851 9639
Bhopal 1800-425-4445/ 044-2851 9639
Bhubaneswar Cuttack 1800-425-4445/ 044-2851 9639
Bikaner 1800-425-4445/ 044-2851 9639
Chandigarh 1800-425-4445/ 044-2851 9639
Chennai 1800-425-4445/ 044-2851 9639
Cochin 1800-425-4445/ 044-2851 9639
Coimbatore 1800-425-4445/ 044-2851 9639
Dehradun 1800-425-4445/ 044-2851 9639
Delhi 1800-425-4445/ 044-2851 9639
Durg 1800-425-4445/ 044-2851 9639
Faridabad 1800-425-4445/ 044-2851 9639
Gandhinagar 1800-425-4445/ 044-2851 9639
Ghaziabad 1800-425-4445/ 044-2851 9639
Goa 1800-425-4445/ 044-2851 9639
Greater Noida 1800-425-4445/ 044-2851 9639
Gurgaon 1800-425-4445/ 044-2851 9639
Guwahati 1800-425-4445/ 044-2851 9639
Gwalior 1800-425-4445/ 044-2851 9639
Hyderabad 1800-425-4445/ 044-2851 9639
Indore 1800-425-4445/ 044-2851 9639
Jabalpur 1800-425-4445/ 044-2851 9639
Jaipur 1800-425-4445/ 044-2851 9639
Jalandhar 1800-425-4445/ 044-2851 9639
Jodhpur 1800-425-4445/ 044-2851 9639
Kanpur 1800-425-4445/ 044-2851 9639
Karnal 1800-425-4445/ 044-2851 9639
Kolhapur 1800-425-4445/ 044-2851 9639
Kolkata 1800-425-4445/ 044-2851 9639
Kota 1800-425-4445/ 044-2851 9639
Kozhikode 1800-425-4445/ 044-2851 9639
Lucknow 1800-425-4445/ 044-2851 9639
Ludhiana 1800-425-4445/ 044-2851 9639
Madurai 1800-425-4445/ 044-2851 9639
Meerut 1800-425-4445/ 044-2851 9639
Mehsana 1800-425-4445/ 044-2851 9639
Mohali Sas Nagar 1800-425-4445/ 044-2851 9639
Mumbai 1800-425-4445/ 044-2851 9639
Mussoorie 1800-425-4445/ 044-2851 9639
Nagpur 1800-425-4445/ 044-2851 9639
Nashik 1800-425-4445/ 044-2851 9639
Noida 1800-425-4445/ 044-2851 9639
Noida Extn 1800-425-4445/ 044-2851 9639
Panipat 1800-425-4445/ 044-2851 9639
Patna 1800-425-4445/ 044-2851 9639
Pondicherry 1800-425-4445/ 044-2851 9639
Pune 1800-425-4445/ 044-2851 9639
Raipur 1800-425-4445/ 044-2851 9639
Rajkot 1800-425-4445/ 044-2851 9639
Ranchi 1800-425-4445/ 044-2851 9639
Rohtak 1800-425-4445/ 044-2851 9639
Roorkee 1800-425-4445/ 044-2851 9639
Salem 1800-425-4445/ 044-2851 9639
Shimla 1800-425-4445/ 044-2851 9639
Sonipat 1800-425-4445/ 044-2851 9639
Surat 1800-425-4445/ 044-2851 9639
Trichy 1800-425-4445/ 044-2851 9639
Udaipur 1800-425-4445/ 044-2851 9639
Vadodara 1800-425-4445/ 044-2851 9639
Varanasi 1800-425-4445/ 044-2851 9639
Vijaywada 1800-425-4445/ 044-2851 9639
Vizag 1800-425-4445/ 044-2851 9639

IOB Business Loan News - Apr 2021
  • 2020-11-09 : IOB posts ₹148-crore net profit in Q2
    Indian Overseas Bank reported a net profit of Rs 148 crore for the second quarter. Net profit grew 22.3% from Rs 121 crore in the June quarter of this fiscal. Total income backed by retail loans like home, personal, gold, two-wheeler and car loan along with business and mudra loans rose 8.1% to Rs 5,431. Interest income increased to Rs 4,363 crore from Rs 4,276 crore a year ago. Further, bank average cost of deposit which include fixed and recurring deposits reduced to 4.89% from 5.41%, while net interest margin improved to 2.18% for the quarter as against 1.86 per cent in the year-ago period.
  • 2020-08-21 : Indian Overseas Bank reported Rs. 120.69 crore net profit in Q1FY21
    Indian Overseas Bank reported a net profit of Rs.120.69 crores for the period ended June 30, 2020, as against a net profit of Rs.143.79 crores for the period ended March 31, 2020. In addition to this, the bank posted a total income of Rs.5233.63 crores backed by retail loans like home, personal, car, two-wheeler and gold loans along with business and mudra loans. Total deposits which include Fixed and recurring deposits increased to Rs 2.26 lakh crore as on June 30, 2020, as against Rs 2.21 lakh crore by June last year.
  • 2020-02-18 : Indian Overseas Bank plans to pay special attention to MSMEs
    Indian Overseas Bank is planning to increase its MSME loans from current Rs. 30,000 to Rs. 50,000 crores. IOB has already started an Outreach program for MSMEs and is planning to start new initiatives further to boost short term business loans.
  • 2019-10-01 : Indian Overseas Bank offers repo-linked loans from today
    After RBI directed banks to link their lending rates with external benchmarks, Indian Overseas Bank is set to offer loans linked with repo rate. As per the update, the Bank will provide retail and MSME loans at repo rate+2.85% as the spread. Further, the Bank will also offer the benefit of 0.25% to small borrowers by charging Mudra Loans up to Rs 50,000 at 8.25%. This will be in effect from October 1, 2019.
  • 2019-09-18 : Indian Overseas Bank links its MSME and retail loans to repo rate
    With effect from October 1, 2019, Indian Overseas Bank is set to link its business and retail loans like housing and personal loans to the repo rate. The repo linked lending rate will enable convenient and affordable loans for borrowers. The repo rate will affect the floating interest rate on these loans.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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