The financial tools designed by the non-banking financial companies provide us with an excellent way to avail support in exchange for an interest rate on tenure. This financial instrument where a borrower can avail money based on an agreement to pay the instalments every month is called loans. Imagine how hard it is to arrange a lump sum amount of money at once! This is where the loans can be of great help for financial support. Whether you need it for personal or professional use, you can approach a lender and get one based on your credibility judged on specific parameters.

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**Things to ponder before taking a loan**

Seeking a loan will save you from a huge hassle but might become a significant burden if you have not paid attention to the following points.

**All-in cost assessment:**The prime focus of your loan venture should be the cost assessment. It includes the amount you have to pay to the bank along with the interest rate, processing fee, prepayment amount, and the amount you will have to pay when you are late, i.e., penalty. In a nutshell, you should know the APR. This will give you an idea of what you are going into so that you can design your financial future accordingly. Find out the amount you need, the amount you can afford, and the EMI you can pay every month.**Reducing a balanced interest rate or flat?:**There is a huge difference between the terms mentioned above. In the case of a flat rate of interest, your EMI will be fixated on the term and the principal amount. Even if you are paying the EMI every month and reducing the principal, your interest rate will be carried over the amount you have borrowed. On the other hand, if you are taking a loan based on a reducing balance interest rate, you will enjoy a reduction of EMI over time as the principal amount will be paid off gradually. For this,**calculate EMI for a business loan**using an online calculator for convenience. Generally, the flat rate scheme is amended by financial institutions.**Eligibility and flexibility:**These are the two terms that decide whether you can avail of a loan you want. Your credit score will tell the financial institution how much loan you can pay in fixed tenure. On the other hand, there are excellent measures offered by the NBFCs where you can avail loans without any mortgage and minimum documentation. It all depends on what type of loan you want to avail or how much you need.**Better rates:**Find out a feasible platform where you can take a loan at a lower rate of interest. It is the era of competition where the financial institutions provide a brilliant portal for borrowing money at a minimum rate possible within a few days.

**How to calculate EMI by calculator?**

The next step is to find out the EMI you will have to pay to the lender based on the principal amount you have chosen to borrow. In this case, you will need the assistance of a calculator and the universal formula used by the financial institutions to figure out an EMI plan.

Here is the formula used by the **EMI calculators **of online finance portals.

**EMI = [ P x R x (1+R) ^ N] / [ (1+R) ^ (N-1) ]**

Understanding this formula for the first time might be intimidating. Let us discuss it in detail. Understand the terminology used in this formula to get a clear idea.

In this context,

**EMI** stands for equated monthly instalments.

The term ‘**P**’ stands for the principal amount you want to borrow from a bank.

‘**R**’ represents the rate of interest a financial institution fixates on that amount to calculate the EMI plan. As the calculation is based on compound interest formula and you want a monthly figure, this yearly rate will be divided by 12 to get a monthly rate.

The term ‘**N**’ stands for the number of years you will take to repay the loan amount disbursed. Again, the number of years will have to be converted to a number of months so that you can equate a monthly instalment plan using this **business loan EMI calculator**.

Let us take an example and calculate a plan using this formula for the **EMI calculator business loan.**

Suppose the loan amount is INR 500,000. It is the value of ‘P.’

The rate of interest is 15% charged annually. It becomes (15%/12 = 1.25%). It becomes the value of ‘R.’

The loan is taken for tenure of two years. Hence, N becomes (2 x 12) = 24 months.

Putting all the values in the formula, we get,

**EMI = [ 500,000 x 1.25/100 x (1+1.25/100) ^ 24 / [ (1+1.25/100) ^ (24 – 1) ]**

**= 24,243**

Using a simple calculator, the EMI comes out to be INR 24,243.

This is how an EMI calculation is done. If you are not adept at handling calculators to compute these complex calculations, all you have to do is to visit the website of ZipLoan and use the online **EMI calculator for a business loan. **Put the values in the respective boxes of principal, loan tenure, etc. The rate of interest will be displayed by the EMI calculator itself. Press the calculate button and get the EMI figure you have to pay every month.

**Why use our online EMI calculator?**

When you use our **commercial loan EMI calculator, **you will find extreme convenience to compute complex EMI calculations within seconds. Why waste time when you can easily find out the EMI plan for a decided loan amount? Enjoy accurate answers and instant calculations specific to different types of the loan without any hassle. Once you are decided with the loan amount, you can proceed further and avail it within a few days.

Use our **EMI calculator for loans **and plan your future accordingly. Log on to our ** website** and calculate EMI on the amount you want to borrow. Seek further information and answers to your queries from our executives.