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IndusInd Bank Business Loan EMI Calculator India Apr 2021

Business Loan EMI Calculator IndusInd Bank

Last Updated 24th Mar 2021

Get monthly EMI as low as ₹ 2,327 per lakh on IndusInd Bank business loan. Business loan EMI in IndusInd 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₹ 8,979₹ 4,801₹ 2,327
₹ 5 Lakh₹ 44,894₹ 24,006₹ 11,634
₹ 10 Lakh₹ 89,787₹ 48,013₹ 23,268
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Business Loan Calculator IndusInd Bank

  • Business loan EMI (or equated monthly installment) is a fixed amount of money paid by you to IndusInd 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.
  • IndusInd Bank offers business loans with loan tenure up to 60 months that translates into a lowest loan EMI of ₹ 2,327 per lakh, which makes it affordable for business loan borrowers. Lowest Rate of interest offered by IndusInd Bank on business loan is 14.00%.

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

Business loan EMI for ₹ 10 Lakh loan amount at lowest 14.00% interest rate offered by IndusInd Bank for different tenures

1 year 2 year 5 year
IndusInd Bank EMI for loan amount of ₹ 10 Lakh at 14.00% ₹ 89,787 ₹ 48,013 ₹ 23,268
Total amount you pay back to the bank including principal and interest ₹ 11,47,523 ₹ 13,16,809 ₹ 19,89,789
Interest you have to pay over loan tenure ₹ 1,47,523 ₹ 3,16,809 ₹ 9,89,789
  • 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 ₹ 23,268. However, you pay an interest of ₹ 9,89,789 on a ₹ 10 Lakh loan.
  • In contrast, if you take a ₹ 10 Lakh loan from IndusInd Bank at the lowest loan rate offered for a period of 1 year, you pay a higher loan EMI of ₹ 89,787 and pay an interest of only ₹ 1,47,523 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 IndusInd Bank Business Loan EMI

  • Loan amount - This is the amount borrower promises to repay to the bank with the interest applied. IndusInd Bank gives minimum business loan of ₹ 50,000 up to an amount of ₹ 15,00,000.
  • 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 IndusInd Bank is 14.00%. 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, IndusInd 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.

IndusInd Bank Business Loan Calculator Formula

P*r* (1+r)^n/([(1+r)^n]-1)
Here is an illustration of how IndusInd Bank business loan EMI is calculated:
In above formula,
P = Loan amount. This can range from ₹ 50,000 to ₹ 15,00,000
r = Rate of interest per month. Current rate is 14.00%
n = tenure in month. For IndusInd Bank, this can be 60 months

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

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

Business Loan EMI (or equated monthly installment) is a fixed amount of money paid by you to IndusInd 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 IndusInd 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 IndusInd Bank offering business loan with loan tenure up to 60 months, the loan EMI can be as low as ₹ 2,327 per lakh, to make it more affordable and convenient to meet your business needs. Rate of interest offered by IndusInd Bank are as low as 14.00%. You can check EMI for other tenures using our IndusInd 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 IndusInd 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 IndusInd 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, IndusInd 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 IndusInd 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?

IndusInd 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 IndusInd 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

IndusInd Bank Business Loan Customer Care Number, Email, Application Status, Branches
City Customer Care Number
Agra 1860-267-7777
Ahmedabad 1860-267-7777
Ambala 1860-267-7777
Anand 1860-267-7777
Aurangabad Bihar 1860-267-7777
Bangalore 1860-267-7777
Bhilai 1860-267-7777
Bhilwara 1860-267-7777
Bhiwadi 1860-267-7777
Bhopal 1860-267-7777
Bhubaneswar Cuttack 1860-267-7777
Bikaner 1860-267-7777
Chandigarh 1860-267-7777
Chennai 1860-267-7777
Cochin 1860-267-7777
Coimbatore 1860-267-7777
Dehradun 1860-267-7777
Delhi 1860-267-7777
Durg 1860-267-7777
Faridabad 1860-267-7777
Gandhinagar 1860-267-7777
Ghaziabad 1860-267-7777
Goa 1860-267-7777
Greater Noida 1860-267-7777
Gurgaon 1860-267-7777
Guwahati 1860-267-7777
Gwalior 1860-267-7777
Hyderabad 1860-267-7777
Indore 1860-267-7777
Jabalpur 1860-267-7777
Jaipur 1860-267-7777
Jalandhar 1860-267-7777
Jodhpur 1860-267-7777
Kanpur 1860-267-7777
Karnal 1860-267-7777
Kolhapur 1860-267-7777
Kolkata 1860-267-7777
Kota 1860-267-7777
Kozhikode 1860-267-7777
Lucknow 1860-267-7777
Ludhiana 1860-267-7777
Madurai 1860-267-7777
Meerut 1860-267-7777
Mehsana 1860-267-7777
Mohali Sas Nagar 1860-267-7777
Mumbai 1860-267-7777
Mussoorie 1860-267-7777
Nagpur 1860-267-7777
Nashik 1860-267-7777
Noida 1860-267-7777
Noida Extn 1860-267-7777
Panipat 1860-267-7777
Patna 1860-267-7777
Pondicherry 1860-267-7777
Pune 1860-267-7777
Raipur 1860-267-7777
Rajkot 1860-267-7777
Ranchi 1860-267-7777
Rohtak 1860-267-7777
Roorkee 1860-267-7777
Salem 1860-267-7777
Shimla 1860-267-7777
Sonipat 1860-267-7777
Surat 1860-267-7777
Trichy 1860-267-7777
Udaipur 1860-267-7777
Vadodara 1860-267-7777
Varanasi 1860-267-7777
Vijaywada 1860-267-7777
Vizag 1860-267-7777

IndusInd Bank Business Loan News - Apr 2021
  • 2021-02-26 : IndusInd Bank to grow loan book by 15-18%
    IndusInd Bank is expecting to grow its loan portfolio by 15-18% year-on-year for the next two financial years under its fifth planning cycle.The Bank’s year-on-year growth in advances which include home, personal, LAP, two-wheeler car and gold loan along with business and mudra loan was flat at Rs 2.07 trillion until December 2020. Its deposits which include fixed and recurring deposits, grew by 10% to Rs 2.39 trillion.
  • 2021-01-08 : IndusInd Bank reported 11% growth in Q3 deposits
    IndusInd Bank posted a 3.2% quarter-on-quarter growth in the net advances which include home, personal, car, two-wheeler, gold and education loan along with business and mudra loans in the December quarter. Further, the bank also posted a 5% quarterly growth in deposits which includes fixed and recurring deposits.
  • 2020-07-29 : IndusInd Bank reported a Q1 profit before tax of Rs 602.45 crore
    IndusInd Bank registered a 67.8% fall in Q1FY21 net profit on the back of a five-fold increase in provisions for bad loans. Net interest income backed by a home, personal, gold, car and two-wheeler loans along with business and mudra loans grew by 16.4% year-on-year to Rs 3,309.2 crore in the quarter ended June 2020. Further, the gross bad asset ratio spiked to 2.53 per cent from 2.45 per cent in the March quarter and 2.15 per cent in the June quarter last year.
  • 2020-04-28 : IndusInd Bank reported a Q4 profit of Rs. 301.84 crore
    Private sector lender IndusInd Bank registered a Q4 profit of ₹301.84 crores against ₹360.10 crores a year ago. In addition to this, the bank’s standalone net profit for 2019- 2020 surged by 33.8% backed by retail loans like home and personal loan along with business loan to ₹4,417.91 crores against ₹3,301 crores in 2018-19.
  • 2018-01-16 : Indusind reports net 25% growth in December quarter
    Private sector lender Indusind Bank has reported a 25% net growth in the third quarter, ending this December. The net profits stand at Rs. 936.25 crore owing to the higher core income. The report showed a minor positive change in the gross non- performing assets ratio, which went up with reverses in loans against property, commercial loans and corporate 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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