Loan EMI Calculator 201973 views
- Compute Monthly EMI with the help of the RBL Bank Business Loan EMI Calculator.
- Drawbacks of Using the Manual Methods for Calculating EMI.
RBL Bank Business Loan EMI Calculator is the best tool for finding out the EMI that you will pay on a certain amount of business loans. The needed information for the calculation of EMI is the rate of interest, the principal amount and the tenure for which the loan has been taken. Pre-calculation of EMIs is helpful in deciding the loan amount to be taken and in deciding the repayment period.
|Monthly Instalment (EMI)|
|Total Interest Amount|
|Total Amount (Principal + Interest)|
Table of Contents
Factors that Affects the Amount of EMI
Principal Amount:- Principal amount is basically the loan amount that is borrowed by the applicant. So it is obvious that the higher the loan amount, the higher will be the EMI and the lower the loan amount, the lower will be the EMI. Therefore the loan or the principal amount is responsible for the fluctuation in the EMI.
Rate of Interest:- Business Loan Interest Rates also helps to calculate the EMI of the loan. No financial institution grants a business loan without charging a rate of interest. So higher interest rates result in the computation of high EMIs.
Time Period:- The time period for which the loan has been taken is also an important factor. You can reduce your EMIs by taking a loan for a longer period. But it will increase the overall interest amount charged on the loan.
Manual Formula for EMI Calculation
EMI = P x R x (1+R)^n/((1+R)^n-1)
P represents the Principal Amount.
R is the Rate of Interest.
Small “n” is the tenure given by the bank
Drawbacks of Using the Manual Method for Calculating EMI
Time Taking:- The manual calculation of EMI is really difficult. Therefore the only way left is to use the Business Loan EMI Calculator. It will save a lot of time. On the other hand, the manual method is time consuming and needs a lot of attention.
Chances of Errors:- In the manual method of calculating EMI there are chances of errors. So it is better to use the online EMI Calculator for computing the EMI. A small negligence can result in the calculation of wrong EMIs.
Needs Mathematical Expertise:- As you can see the formula used for calculating EMI is complex and it needs a lot of mathematical expertise. It will be difficult for you to derive the exact EMI using the formula or the manual method.
Lengthy Formula:- The formula used in the EMI calculation is too lengthy. It will be difficult for you to memorise the formula. Even a wrong placement of a single character in the formula will calculate the wrong EMI.
About RBL Bank
RBL stands for Ratnakar Bank Limited that is a private banking institution. It grants loans to the business having less capital at a competitive rate of interest. One can easily get an RBL Bank Business Loan up to 10 Lacs without collateral. The processing fee is between the range of 2% to 3% on the loan amount. So if you are willing to take a business loan then you can consider the RBL Bank as an option.
Now, you know why RBL Bank Business Loan EMI Calculator is better than manual calculation. This online calculator displays all the information in a graphical form as well. You can easily differentiate between the principal amount and the interest amount in your calculated EMI. The main factors that fluctuate the amount of EMI are the loan amount, rate of interest and the time period.