IDFC Business Loan Calculator

IDFC Business loan calculator is a self-help tool that helps the user to compute the EMI amount of the loan one might take to facilitate business operations. The EMI is the equated monthly instalments the borrower must pay against their loan. EMI is the sum of the interest, i.e. charges levied for the loan and principal, i.e. instalments on the business loan. The tenure to repay the business loan from the IDFC Bank generally ranges around 48 months and the lowest rate of interest offered is 19% per annum.

Benefits of Calculating IDFC Business Loan 

The IDFC Business loan calculator is an AI-based high-tech tool that allows users to evaluate the EMI amount they would have to bear against the loan. It provides the following benefits to the user.

• Accessibility

The IDFC Business loan calculator provides easy accessibility. You can find it online easily, and the calculator also features a straightforward interface that allows first-time users to evaluate the EMI amount using simple steps.

• Accuracy

The IDFC Business loan calculator is an online tool that provides the user with accuracy while deriving the EMI amount. The calculator saves the user from manual calculations prone to miscalculations and errors. The calculator user also saves much time when computing the EMI amount.

• Comparison

The IDFC Business loan calculator lets users mention multiple values on the featured fields. The calculator provides the user to make the adjustments and enter multiple values to determine the EMI amount they can manage. They can also mention the various tenures and diverse rates of interest offered by different banks to obtain the best deal in the market.

IDFC Bank Business Loan EMI Calculator Formula 

The IDFC Bank business loan calculator employs the following formula to derive the EMI amount on the Business Loan.

P* r*  (1+r) ^n/ ([1+r]^n}-1)

Here,

• P is the principal loan amount. This business loan amount from the IDFC Bank ranges from Rs 1,00,000 to 9,00,00
• r is the rate of interest on the business loan. The interest rate offered by the bank on unsecured business loans currently commences from 16% per annum.
• n is the loan tenure determined to repay the loan. The lengthiest tenure offered by the IDFC bank on the business loan is 48 months.

How does the IDFC Business Loan Calculator Function?

The IDFC Business loan calculator makes the computation of the business loan convenient owing to its straightforward interface. The user must follow the steps below to calculate the loan amount.

• The user needs to mention the loan amount they want to obtain from the bank for their business operations. The IDFC Bank allows the user to borrow a business loan amount of up to 9 Lakhs.
• The user must then mention the interest rate the bank would charge on the loan. They can mention a ballpark figure of the rate of interest they think the bank will offer them.
• The user would finally mention the tenure of the loan. The IDFC Bank provides a tenure of up to 48 months on business loans.
• After filling in the fields mentioned above on the calculator, the calculator will enlighten the user with the payable EMI amount with respect to the values filled almost immediately. 

Contents of the IDFC Bank Business EMI Loans Calculator

The IDFC business loan calculator entail the following features: 

• Loan Amount 

The loan amount refers to the business loan amount borrowed by IDFC Bank. The loan amount feature symbolises the amount the calculator user might want to obtain from the IDFC bank to enable their business operations. The IDFC Bank provides collateral-free funding to businesses. 

• Rate of Interest 

The interest rate highlights the amount the IDFC Bank will charge from the loan borrowers. The rate is the charge levied by the bank for giving the applicant access to their funds. The bank usually charges interest rates from 16% per annum to 24% per annum. The rate of interest is determined after evaluating various parameters related to the business. 

• Loan Duration 

This feature examines the tenure the borrower might take to repay the loan fully. The loan tenure is important in determining the EMIs against the business loan. The repayment tenure for IDFC Bank is up to 48 months (4 years).

Things to Consider while Calculating IDFC Business Loan

The borrower must consider the following factors while calculating the EMI amount on the IDFC Business Loan Calculator:

• Loan Amount: The higher the loan amount; the higher would be the EMIs on the business loan.
• Interest Rate: A high-interest rate on the business loan would accentuate the cost of the business loan.
• Tenure: A lengthy tenure would reduce the EMI amount significantly. 

Business Loan Amortisation Calculator

The IDFC business loan calculator gives the user a detailed account of the repayment plan against the business loan. The amortisation table provides the breakdown of the EMI between the principal and interest. The IDFC Bank provides an amortisation schedule to the borrowers to give them an overview of the loan repayment schedule. Additionally, it gives insights into the proportion of the interest and principal throughout the tenure.

Let’s take an example for a better understanding. Suppose you want to take a business loan of Rs 5,00,000 at an interest rate of 19% per annum. The tenure of the loan is determined at 24 

months. The amortisation for such a loan would reflect the following values.

Month	EMI	Interest	Principal	Outstanding Balance
1	Rs 25,204.31	Rs 7,917	Rs 17,288	Rs 482,712
2	Rs 25,204.31	Rs 7,643	Rs 17,561	Rs 465,151
3	Rs 25,204.31	Rs 7,365	Rs 17,839	Rs 447,312
4	Rs 25,204.31	Rs 7,082	Rs 18,122	Rs 429,190
5	Rs 25,204.31	Rs 6,976	Rs 18,409	Rs 4,10,718
6	Rs 25,204.31	Rs 6,504	Rs 18,700	Rs 3,92,081
7	Rs 25,204.31	Rs 6,208	Rs 18,996	Rs 3,73,084
8	Rs 25,204.31	Rs 5,907	Rs 19,297	Rs 3,53,787
9	Rs 25,204.31	Rs 5,602	Rs 19,603	Rs 3,34,184
10	Rs 25,204.31	Rs 5,291	Rs 19,913	Rs 3,14,271
11	Rs 25,204.31	Rs 4,976	Rs 20,228	Rs 2,94,043
12	Rs 25,204.31	Rs 4,656	Rs 20,549	Rs 2,73,494
13	Rs 25,204.31	Rs 4,330	Rs 20,874	Rs 2,52,620
14	Rs 25,204.31	Rs 4,000	Rs 21,204	Rs 2,31,416
15	Rs 25,204.31	Rs 3,664	Rs 21,540	Rs 2,09,876
16	Rs 25,204.31	Rs 3,323	Rs 21,881	Rs 1,87,994
17	Rs 25,204.31	Rs 2,977	Rs 22,228	Rs 1,65,767
18	Rs 25,204.31	Rs 2,625	Rs 22,580	Rs 1,43,187
19	Rs 25,204.31	Rs 2,267	Rs 22,937	Rs 1,20,250
20	Rs 25,204.31	Rs 1,904	Rs 23,300	Rs 96,950
21	Rs 25,204.31	Rs 1,535	Rs 23,669	Rs 73,280
22	Rs 25,204.31	Rs 1,160	Rs 24,044	Rs 49,236
23	Rs 25,204.31	Rs 780	Rs 24,425	Rs 24,811
24	Rs 25,204.31	Rs 393	Rs 24,811	Rs 0

Tips to Obtain a Business Loan from the IDFC Bank 

The borrowers can implement the following steps to obtain a business loan from IDFC Bank smoothly without any hassle.

• The applicant should try to reduce the loan amount asked from the bank as much as they can before applying. As the nature of the business loan is unsecured or collateral-free, the banks are hesitant to disburse a large amount for borrowing.
• The business loan applicant should also evaluate their businesses’ finances and their credit score, as these parameters are factored in to determine the interest rates on the business loans.

• The applicant is also required to do some bookkeeping where they should assess if they can manage the monthly EMIs of the business loan with their monthly budget. The repayment tenure on the business loan is comparatively short and the interest rate is comparatively high. They can also employ IDFC Business Loan Calculator to compute a manageable EMI amount.