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An amortization schedule helps understand how each repayment installment is divided into interest and principal. Example: The amortization schedule of Rs. 30 lakh loan, at an interest rate of 13% p.a. and tenure of 6 years, will be the following:
| Month | Principal (Rs.) | Interest (Rs.) | Principal + Interest (Rs.) | Balance to be Paid (Rs.) |
|---|---|---|---|---|
| 1 | 27722 | 32500 | 60222 | 2972278 |
| 2 | 28023 | 32200 | 60222 | 2944255 |
| 3 | 28326 | 31896 | 60222 | 2915929 |
| 4 | 28633 | 31589 | 60222 | 2887296 |
| 5 | 28943 | 31279 | 60222 | 2858352 |
| 6 | 29257 | 30965 | 60222 | 2829096 |
| 7 | 29574 | 30649 | 60222 | 2799522 |
| 8 | 29894 | 30328 | 60222 | 2769628 |
| 9 | 30218 | 30004 | 60222 | 2739410 |
| 10 | 30545 | 29677 | 60222 | 2708864 |
| 11 | 30876 | 29346 | 60222 | 2677988 |
| 12 | 31211 | 29012 | 60222 | 2646777 |
Note: The schedule given above is for 12 months. For the rest of the months, the principal amount and interest will continue to adjust progressively.
For the ease of your understanding, a sample EMI calculation is provided below: Example:
| Interest Rate (p.a.) | Monthly EMI (Approx.) | Total Interest Payable (Approx.) | Total Repayment (Approx.) |
|---|---|---|---|
| 9% | Rs. 62,340 | Rs. 7.40 lakh | Rs. 37.40 lakh |
| 11% | Rs. 65,250 | Rs. 9.15 lakh | Rs. 39.15 lakh |
| 12% | Rs. 66,720 | Rs. 10.03 lakh | Rs. 40.03 lakh |
| 13% | Rs. 68,280 | Rs. 10.97 lakh | Rs. 40.97 lakh |
| 15% | Rs. 71,400 | Rs. 12.84 lakh | Rs. 42.84 lakh |
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Yes, it is wise to use a business loan EMI calculator before prepayment for better planning.
Longer tenure means lower EMIs but more total interest paid. Shorter tenure increases EMI but total interest outgo is less.
Paisabazaar provides a business loan EMI calculator which can be used across many lenders for free.
Yes, the results given by the Canara Bank business loan EMI calculator is accurate, provided the inputs given by you are also correct.
You can use the business loan EMI calculator as many times as needed for free. There are no limits on usage.
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