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Business Loan EMI Calculator by Balloon Payment
EMI
Balloon Payment
Reducing Balance
Interest First
Deferred Payment
Loan Amount
Loan Tenure
Year
Month
Rate of Interest
%
Balloon Payment
Copy
Share
EMI
15628
Interest
600245
Principal
1000000
Total
1600245
600 K
(6 Lac)
8
Year
1,000,000
437 K
(4 Lac)
Year
Original
Reduced
𝒊
15628
will be
EMI
for
1000000
(1 m/10 Lac)
Loan Amount
for
8
Year
Loan Tenure
at
12.00%
Rate of Interest
.
How to Reduce Interest/ Tenure?
Pay
0
1
2
3
4
5
Extra EMI every year.
𝒊
Increase EMI by
0
2
3
5
7
10
15
20
% every year.
𝒊
Pay Lump-Sum
0
(10 K)
(20 K)
(30 K)
(40 K)
(50 K)
(60 K)
(70 K)
(80 K)
(90 K)
(100 K)
in
0
1
2
3
4
year.
𝒊
Recalculate
Share
Loan
Tenure
Interest
Original
8 year
600245
Reduced
5 year
9 months
437657
Saved
2 year
3 months
162588
Loan Payment Schedule
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Original
Reduced
Balloon Payment
288 K
(2 Lac)
216 K
(2 Lac)
144 K
(1 Lac)
72 K
0
-
-
-
-
-
2024
2028
2031
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Business Loan EMI by Balloon Payment
A Business Loan EMI by Balloon Payment features smaller, regular payments throughout the loan term, with a large balloon payment due at the end. This arrangement allows businesses to benefit from lower monthly payments while deferring a significant lump sum payment until the loan term concludes. This can be advantageous for managing cash flow during the loan period, though it requires planning for the substantial final payment to fully repay the loan. Plan your business growth with our Business Loan EMI Calculator by Balloon Payment. Get detailed insights into your loan repayments, interest rates, and principal, helping you manage your finances for business expansion effectively.
Calculate Business Loan EMI by Balloon Payment
Enter loan details including loan amount, interest rate, tenure, choose months or years, and balloon payment amount to calculate business loan EMI by balloon payment.
Click Calculate to view your initial business loan EMI breakdown and understand your payment options.
Customize payment options with three inputs.
Select a number of extra EMIs per year.
Increase EMIs by a percentage.
Select lump sum payment in a specific year.
Adjust inputs as needed and click Recalculate to update your business loan EMI tenure and interest dynamically.
Balloon Payment EMI formula
To calculate Business Loan EMI, use the Balloon Payment EMI formula for precise results. This calculation helps you understand your repayment obligations clearly.
E
M
I
=
(
P
-
B
(
1
+
r
)
n
)
×
r
1
-
(
1
+
r
)
-
n
EMI
= Equated Monthly Installments
P
= loan amount.
B
= balloon payment at the end of the tenure.
r
= monthly interest rate.
n
= total number of monthly installments.
Eligibility Criteria for Business Loan EMI by Balloon Payment
Business Registration:
Applicants must have a registered business entity, such as a sole proprietorship, LLC, or corporation.
Creditworthiness:
Lenders evaluate the creditworthiness of the business and its owners by reviewing credit history and financial statements.
Business Viability:
Evidence of the business's viability, such as business plans and sales forecasts, may be required to show potential revenue for loan repayment.
Collateral:
Lenders may require collateral, like business assets, to secure the loan based on its amount and terms. Understanding your business loan EMI by balloon payment and overall business loan EMI is crucial for effective financial planning.
Business Loan EMI Calculator by Balloon Payment FAQ
How does a Balloon Payment EMI differ from a regular EMI?
A balloon payment EMI involves making smaller, regular payments during the loan term, with a large lump sum payment due at the end. Regular EMI types involve equal payments of principal and interest throughout the loan term, with no large final payment required.
What are the advantages of a Business Loan EMI by Balloon Payment?
Business loan EMI by balloon payment offers lower monthly payments, easing initial financial strain and improving cash flow. It is ideal for businesses expecting future revenue increases or a cash inflow to cover the final large payment.
What are the disadvantages of a Business Loan EMI by Balloon Payment?
Business loan EMI by balloon payment can be risky due to the large final payment, which may be challenging if funds are insufficient. Businesses might need to refinance or seek additional funding, potentially facing higher costs or less favorable terms if circumstances change.
×
How extra EMI(s) help?
At the end of the year, you can pay extra EMIs out of your savings. This extra EMI payment will go towards your Loan Amount and save you on the interest as well as tenure of the loan.
Payment
Tenure
Interest
Current
8 year
600245
1 Extra EMI/ year
8 year
▶ 0 year
526762
▶ 73483
2 Extra EMI/ year
7 year
▶ 1 year
470659
▶ 129586
3 Extra EMI/ year
6 year
▶ 2 year
428291
▶ 171954
How increasing EMI helps?
As your income increases each year, you can get your EMI increased from the bank. This allows you to allocate more funds towards paying off the loan amount and save you on the interest as well as tenure of the loan.
Payment
Tenure
Interest
Current
8 year
600245
Increase EMI by 1%
8 year
▶ 0 year
577771
▶ 22474
Increase EMI by 3%
8 year
▶ 0 year
540432
▶ 59813
Increase EMI by 5%
7 year
▶ 1 year
510332
▶ 89913
How Paying Lumpsum Amount helps?
If you receive unexpected income, such as a bonus or tax refund, consider making a lump-sum payment on your loan. This can help reduce the outstanding loan amount and save you on the interest as well as tenure of the loan.
Payment
Tenure
Interest
Current
8 year
600245
Pay 10% in 2nd year
7 year
▶ 1 year
494703
▶ 105542
Pay 20% in 3rd year
7 year
▶ 1 year
452117
▶ 148128
Pay 30% in 4th year
6 year
▶ 2 year
452307
▶ 147938
How to Reduce Interest/ Tenure?
Making early payments towards Principal amount can reduce your Interest and/ or Tenure.
1. How extra EMI(s) help?
At the end of the year, you can pay extra EMIs out of your savings. This extra EMI payment will go towards your Loan Amount and save you on the interest as well as tenure of the loan.
2. How increasing EMI helps?
As your income increases each year, you can get your EMI increased from the bank. This allows you to allocate more funds towards paying off the loan amount and save you on the interest as well as tenure of the loan.
3. How Paying Lumpsum Amount helps?
If you receive unexpected income, such as a bonus or tax refund, consider making a lump-sum payment on your loan. This can help reduce the outstanding loan amount and save you on the interest as well as tenure of the loan.
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