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Business Loan EMI Calculator by Interest First
EMI
Interest First
Reducing Balance
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Balloon Payment
Loan Amount
Loan Tenure
Year
Month
Rate of Interest
%
Interest Period
Year
Month
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EMI
17653
Interest
602830
Principal
1000000
Total
1602830
602 K
(6 Lac)
8
Year
1,000,000
484 K
(4 Lac)
Year
Original
Reduced
𝒊
17653
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
2
3
4
year.
𝒊
Recalculate
Share
Loan
Tenure
Interest
Original
8 year
602830
Reduced
6 year
3 months
484895
Saved
1 year
9 months
117935
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
291 K
(2 Lac)
218 K
(2 Lac)
145 K
(1 Lac)
72 K
0
-
-
-
-
-
2024
2028
2031
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Business Loan EMI by Interest First
A Business Loan EMI by Interest First is a loan structure where you initially pay only the interest portion of the loan for a specified period. During this time, the principal remains unchanged. After the interest-only period ends, EMIs are recalculated to include both principal and interest, leading to higher payments. This structure is beneficial for businesses that need lower initial payments and anticipate better cash flow later to handle full EMIs. Plan your business growth with our Business Loan EMI Calculator by Interest First. 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 Interest First
Enter loan details including loan amount, interest rate, tenure, choose months or years, and balloon payment amount to calculate business loan EMI by interest first.
Click Calculate to view your initial business loan EMI breakdown and understand your options.
Customize payment options with three inputs.
Add number of extra EMIs per year.
Increase EMIs by a percentage.
Enter lump sum payment in a specific year.
Adjust inputs as needed and click Recalculate to update your business loan EMI tenure and interest dynamically.
Interest First EMI formula
To calculate Business Loan EMI, use the Interest First EMI formula for precise results. This calculation helps you understand your repayment obligations clearly.
I
O
E
M
I
=
P
×
r
12
E
M
I
=
P
×
r
(
1
+
r
)
n
(
1
+
r
)
n
−
1
EMI
= Equated Monthly Installments
P
= loan amount.
IOEMI
= Interest only period EMI.
r
= monthly interest rate.
n
= total number of monthly installments.
Eligibility Criteria for Business Loan EMI by Interest First
Business Registration:
Applicants must have a registered business entity, such as a sole proprietorship, LLC, or corporation.
Creditworthiness:
Lenders assess the creditworthiness of the business and its owners, including 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:
Depending on the loan amount and terms, lenders may require collateral, like business assets, to secure the loan. Understanding your business loan EMI by interest first and overall business loan EMI is crucial for effective financial planning.
Business Loan EMI Calculator by Interest First FAQ
How does Interest First EMI differ from a regular EMI?
In a regular EMI, both principal and interest are paid together from the start of the loan tenure, resulting in fixed payments that include both components. In an interest first EMI, you pay only the interest during an initial period, and principal repayment starts only after this interest-only phase ends. This structure initially reduces monthly payments but results in higher payments once the principal repayment phase begins.
What are the advantages of a Business Loan EMI by Interest First?
Business loan EMI by interest first EMI offers lower initial payments, allowing businesses to manage cash flow and prioritize other investments. This structure provides flexibility early on and helps businesses ease into full repayments as future revenue grows.
What are the disadvantages of a Business Loan EMI by Interest First?
Business loan EMI by interest first can lead to higher overall interest costs since the principal remains unchanged initially. After the interest-only period, EMIs rise significantly, which can be financially challenging if not planned for.
×
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
602830
1 Extra EMI/ year
8 year
▶ 0 year
550934
▶ 51896
2 Extra EMI/ year
7 year
▶ 1 year
510671
▶ 92159
3 Extra EMI/ year
7 year
▶ 1 year
478438
▶ 124392
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
602830
Increase EMI by 1%
8 year
▶ 0 year
589486
▶ 13344
Increase EMI by 3%
8 year
▶ 0 year
566646
▶ 36184
Increase EMI by 5%
7 year
▶ 1 year
547642
▶ 55188
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
602830
Pay 10% in 2nd year
8 year
▶ 0 year
508180
▶ 94650
Pay 20% in 3rd year
7 year
▶ 1 year
470797
▶ 132033
Pay 30% in 4th year
6 year
▶ 2 year
473247
▶ 129583
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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