Technology made Simple to Calculate Everything Online 

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As per estimates, digital lending for MSMEs can increase by 10 to 15 fold to see Rs.6 to 7 lakh crore in annual disbursements by 2023. 

The financial sector has caught up with the progression of technology; fintech companies have simplified the process of lending and borrowing to a substantial extent. 

In this regard, financial tools made available by top lenders across the country have also made it easier for commoners to understand the previously complicated process of availing loans.

Online tools like business loan EMI calculator, for instance, have made it possible even for small-business owners to determine the risks and rewards of availing these advances with ease.

As a result, the integration of technology in the process of loan transactions has certainly made the process simpler.

Following is a look at how these calculators can be utilised, and how borrowers can make optimal use of them before applying for a loan.

What is an online loan calculator?

An online loan calculator is a financial tool that allows individuals to calculate their loan EMI. These calculators are available for various types of advances and have simplified the complicated process of calculating monthly instalments.

For example, a business loan EMI calculator allows one to calculate their monthly repayment amount for such products. 

Consequently, these also enable individuals to learn about the EMI amount they will need to pay, before applying for the advance, thus facilitating better overall financial planning. 

Thus, if you are seeking options for financing your small business, using a calculator to know the monthly instalments will propagate your future plans easily. 

How does a business loan calculator work?

The EMI amount for a business loan depends on three factors – 

  • Loan amount or principal.
  • Loan tenor.
  • Rate of interest.

An online loan calculator uses the following equation to determine the monthly EMI amount for a borrower – 

E = P x r x (1 + r) ^ n / [(1 + r) ^ n – 1]


  • E – Total EMI amount,
  • P – Principal or total loan amount,
  • n – Loan tenor, in months,
  • r – Rate of interest on a monthly basis.

With a loan calculator, borrowers have to simply provide the parameters required, and the correct EMI amount is calculated automatically. 

How to access these online loan calculators?

These loan EMI calculators are made available by financial institutions like Bajaj Finserv, to make borrowing easier for individuals. 

Further, to bolster the ease of availing loans, this NBFC also brings pre-approved offers. These offers make availing loans faster by making the process less complicated. 

Why is using this tool more convenient to avail loans?

Using a business loan EMI calculator makes borrowing simpler for a plethora of reasons. Some of these include the following – 

  • Accurate calculations

While calculating EMI amount for a business loan manually leaves chances of making mistakes, loan calculators are accurate and provide the correct results. Nonetheless, one has to ensure that they are entering the correct numbers while calculating.

  • Convenient

Assessing loan repayment amount online takes only a few seconds, thus allowing one to save a lot of time and hassle from carrying out complicated calculations.

  • Multiple usages

There are specific calculators for each type of advance. Apart from business loans, there are calculators for personal loans, home loans, etc. One simply has to search the type of tool they are seeking and provide the requisite information.

  • Enable financial planning

These are free to use tools that can aid in comprehensive financial planning. Not knowing the EMI amount payable is one of the most serious mistakes to avoid before applying for a business loan

By calculating beforehand, borrowers can gauge their affordability and subsequently eliminate the chances of defaulting EMI payments.

These calculators have, thus, made borrowing much easier for individuals. Not only for loans but these tools have also been made available to calculate taxes (GST calculators).