Business Loan Calculator
Last Updated: 8 April 2026
Business Tip
Unsecured business loans have high ROIs. If you have collateral (Property/Gold), always opt for a Secured Loan to save up to 40% on monthly interest costs.
Calculated on
Reducing Balance Basis
What is Unsecured & Secured Business Loan EMI Calculator 2025?
The Mathematical Formula
EMI = [P x r x (1+r)^n] / [(1+r)^n - 1] | Compounded on Reducing Balance method.
📊 Practical Example
"A ₹10 Lakh business loan at 16% for 3 years results in an EMI of ₹35,157. Total interest paid is ₹2,65,652. Switching to a secured loan at 9.5% reduces the EMI to ₹32,033, saving ₹1,12,464."
⚠️ Common Mistake
Frequently Asked Questions
Q.What is the difference between Secured and Unsecured business loans?
Secured loans require collateral like property, gold, or inventory and offer lower rates (9-11%). Unsecured loans don't need collateral but carry higher rates (14-22%) and are based on your tax returns and bank statements.
Q.What are the eligibility criteria for a business loan in India?
Most banks require at least 2-3 years of business vintage, a positive net worth, and a good CIBIL score. GST registration and regular ITR filings for the last 2 years are mandatory.
Q.Can I get a business loan for a new startup?
Traditional banks rarely fund startups. You might need to look at govt schemes like MUDRA or CGTMSE, or private NBFCs that specifically cater to new enterprises with some revenue proof.
Q.What is the processing time for business loans?
Unsecured digital business loans can be approved in 24-48 hours. Secured property loans take much longer, typically 15 to 25 days, due to legal and technical verification.
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