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IOB Business Loan EMI Calculator India Jul 2021

Business Loan EMI Calculator Indian Overseas Bank

Last Updated 23rd Jun 2021

Get monthly EMI as low as ₹ 2,174 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₹ 8,838₹ 4,661₹ 2,174
₹ 5 Lakh₹ 44,191₹ 23,304₹ 10,871
₹ 10 Lakh₹ 88,382₹ 46,608₹ 21,742
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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 ₹ 2,174 per lakh, which makes it affordable for business loan borrowers. Lowest Rate of interest offered by Indian Overseas Bank on business loan is 11.00%.

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

Business loan EMI for ₹ 10 Lakh loan amount at lowest 11.00% 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 11.00% ₹ 88,382 ₹ 46,608 ₹ 21,742
Total amount you pay back to the bank including principal and interest ₹ 11,14,621 ₹ 12,42,381 ₹ 17,20,428
Interest you have to pay over loan tenure ₹ 1,14,621 ₹ 2,42,381 ₹ 7,20,428
  • 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 ₹ 21,742. However, you pay an interest of ₹ 7,20,428 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 ₹ 88,382 and pay an interest of only ₹ 1,14,621 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 11.00%. 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, Indian Overseas Bank offers business loan for a maximum tenure of 48 months.

Indian Overseas Bank Business Loan Amortization Calculator

Indian Overseas Bank Business Loan amortization schedule gives a break up of your monthly EMI into interest and principal repayment. Indian Overseas 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 Indian Overseas Bank at an interest rate of 11.00%. EMI calculated for this loan amount is ₹ 22,917 and the total annual EMIs to be paid annually is ₹ 2,75,005. 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 ₹ 36,203 ₹ 1,01,299 ₹ 1,37,503 ₹ 5,98,701
2022 ₹ 54,984 ₹ 2,20,022 ₹ 2,75,005 ₹ 3,78,679
2023 ₹ 29,523 ₹ 2,45,482 ₹ 2,75,005 ₹ 1,33,197
2024 ₹ 4,306 ₹ 1,33,197 ₹ 1,37,503 ₹ 0

In the above illustration, on a Indian Overseas Bank Business Loan of₹ 7 Lakh, taken at the lowest interest rate of 11.00, EMI paid is ₹ 22,917 and an annual total of EMIs is ₹ 2,75,005, the interest component is ₹ 66,706 while the principal component is ₹ 2,08,299 in year 1 of loan disbursement. You repay only 29.76% of the total principal after paying 12 EMIs during the first year.

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 11.00%
n = tenure in month. For IOB, this can be 48 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 ₹ 2,174 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 11.00%. 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 Toll Free Number
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

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IOB Business Loan News - Jul 2021
  • 2021-06-15 : Indian Overseas Bank declared a profit of Rs 831 crore
    IOB closed the last fiscal with a net profit of Rs.831 crore as against a net loss of about Rs.8,527 crore. The total income for the year ended 31.03.2021 stands at Rs.22,525 crore as against Rs.20,766 crore for FY20. IOB plans to come up with Prompt Corrective Action to focus on loan recovery, low-cost deposits and less capital consuming advances.
  • 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.
*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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