Business Loan EMI Calculator — Plan Your Business Finance — India 2026

Business Loan Calculator

How This Business Loan EMI Calculator Works

Our business loan EMI calculator uses the standard reducing-balance formula: EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate / 12 / 100), and n is the tenure in months. Enter your loan amount, annual rate, and term in years; the calculator returns your monthly EMI, total interest payable, total amount payable, and a full amortization schedule showing how each EMI splits between principal and interest. In India, business loan rates from major banks (SBI, HDFC, ICICI, Axis, Kotak) currently range from 11% to 17% per annum for unsecured term loans, and 9–12% for loans secured against property or backed by CGTMSE. NBFCs (Bajaj Finserv, Tata Capital, Lendingkart, IIFL) typically price 1–4% higher than banks for the same risk profile but offer faster approval (3–7 days vs 15–30 days for banks).

CGTMSE Collateral-Free Loans — Up to Rs 5 Crore

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is a Government of India scheme that guarantees loans to micro and small enterprises without requiring collateral. As of 2024, the maximum coverage was raised to Rs 5 crore (from Rs 2 crore). Coverage extends to 75–85% of the loan amount, with the lender covering the remaining 15–25% risk. The guarantee fee (paid by the borrower) ranges from 0.37% to 1.35% per annum on the outstanding balance, depending on loan size and category. Eligible borrowers: existing or new micro and small enterprises in manufacturing or services. Eligible lenders: scheduled commercial banks, regional rural banks, certain NBFCs, and SFBs that have signed up with CGTMSE. Apply through any participating lender — they handle the CGTMSE registration. The scheme is the cheapest path to a Rs 1–5 crore unsecured business loan for genuinely qualifying MSMEs.

PMMY (MUDRA) Loans — Shishu, Kishore, Tarun

Pradhan Mantri Mudra Yojana (PMMY) provides micro-finance to small business owners through three categories: Shishu (loans up to Rs 50,000), Kishore (Rs 50,001 to Rs 5 lakh), and Tarun (Rs 5 lakh to Rs 10 lakh). Tarun Plus extends up to Rs 20 lakh for borrowers who have already repaid a previous Tarun loan. MUDRA loans are routed through banks, NBFCs, MFIs, and Small Finance Banks; MUDRA itself is a refinancing institution, not a direct lender. Rates: bank-set, typically 9–14% depending on category and lender. No collateral, no processing fee for Shishu, minimal documentation. Best for very small businesses, traders, vendors, women entrepreneurs, and SC/ST applicants. Apply through any participating lender with PAN, Aadhaar, business proof, and bank statements; approval typically takes 7–15 days.

GST Loans — Borrow Against Your GSTR-3B Filings

A relatively new product, GST-based business loans (offered by Lendingkart, Tata Capital, Indifi, and several banks) use your monthly GST turnover as the primary income proof, eliminating the need for full ITRs and audited financials. Eligibility: GST registration for at least 6–12 months with consistent monthly turnover. Loan amount: typically 1–3x of your monthly GST turnover, capped at Rs 50 lakh for unsecured. Approval timeline: 24–72 hours for digital applications. Rates: 14–22% per annum, higher than collateral-backed bank loans but faster and require fewer documents. Best for: established businesses with strong GST filings but limited collateral, or owners who want capital quickly without going through full bank underwriting.

Business Loan Eligibility — What Indian Lenders Check

Lenders in India evaluate six factors: (1) CIBIL score of all directors/proprietors — 750+ for best rates, 700+ for most lenders, below 650 will face rejection or NBFC pricing; (2) business vintage — most banks require 2–3 years operating history; (3) annual turnover — minimum Rs 12–40 lakh depending on lender; (4) profitability — at least 2 years of positive net profit in audited financials, with current-year run-rate consistent; (5) ITR filings — at least 2 years of personal and business ITRs; (6) banking conduct — average monthly bank balance, no cheque bounces, no dispatch of NACH/auto-debit returns in the last 6 months. Constitution: proprietorships, partnerships, LLPs, and private limited companies all qualify, though pricing differs. Self-employed professionals (doctors, CAs, architects) often get preferential rates through dedicated professional-loan products at participating banks.