Business Loan EMI Calculator
Calculate EMI, total interest, and moratorium period impact for MSME loans, startup loans, and working capital facilities.
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How this calculator works
Business loans differ from personal loans in several ways: they often come with a moratorium (interest-only) period, the interest is tax-deductible as a business expense, and rates vary widely based on creditworthiness (CIBIL), collateral, and scheme (MUDRA, SIDBI, bank CC limit). This calculator handles the moratorium correctly.
EMI = P × r × (1+r)ⁿ / [(1+r)ⁿ − 1] | Moratorium interest = P × r × months | Total repayment = EMI × n + moratorium interest
Last updated: March 2026 · Rates and slabs updated for FY 2025-26
MUDRA for under ₹10L
MUDRA Loans (Shishu/Kishore/Tarun) under PM SVANidhi offer rates from 8.5% with minimal collateral for MSMEs.
Business interest is deductible
Unlike personal loan interest, business loan interest is fully deductible as a business expense — reducing your effective tax rate.
Debt vs equity
Before taking a loan, model if the ROI from investment exceeds the loan interest rate. If ROI > rate, debt makes sense.
Frequently Asked Questions
MUDRA Loans (Shishu/Kishore/Tarun) under PM SVANidhi offer rates from 8.5% with minimal collateral for MSMEs.
Unlike personal loan interest, business loan interest is fully deductible as a business expense — reducing your effective tax rate.
Before taking a loan, model if the ROI from investment exceeds the loan interest rate. If ROI > rate, debt makes sense.