Importance of business loan financing calculators when starting a business

Unsecured loans such as personal loans and credit cards are set to grow by 20% in the coming 5 years with lenders expecting to clock  ₹96 crores in their loan books. Attractive personal loan interest rates, zero collateral, online application process and a quicker approval are some of the reasons why these loans are popular.

However, it is more important than ever to take your time to go through various financing options available to you when deciding to take a business loan.  With technology at the forefront, your income, investments, GST filings, bill payments, medical records, mobile payments and any other liabilities are easily accessible to lenders in order to assess your creditworthiness when you take a loan.

The Business loan EMI calculator available online is an effective tool to help you be aware of the amount you need to pay on a monthly basis, while also taking care of the costs of running your business and ensuring you have enough to meet any emergency. This is not the only financing calculator that you need to have at your disposal to help you navigate the path of starting out your business. Here are a few more:

1. Cost of capital calculator: Whether you are opting for a loan for the short term, through line of credit, micro financing or cash advances, among other options, it is important to analyse, both, the short term and long term repercussions and expenses associated with each. A cost of capital can let you know how much money you will actually end up paying during the loan period easily so that you can make an informed decision. Simply enter the loan amount, duration and interest rate to know your estimated monthly payment, interest added and how much the total payments add up to over the loan payment years.
2. Comparing business loans: Once you have narrowed your search to 3 or 4 loan options that seem suitable to you as per your funding needs, you can now compare all of them. Enter the loan tenure, frequency of payment, and rate of interest offered by each option in this financing calculator. It can help you gauge the EMI you need to pay every month as well as the total interest that you end up paying at the end of the loan period to help you make a better decision.
3. Calculating monthly payment: A business loan EMI calculator like the one available on Finserv MARKETS is an easy and simple way to find out your financial liability in terms of the EMIs that you would have to incur on a loan that you have zeroed upon. Find out how the rate of interest offered and the length of the loan period impacts your EMI. What’s more, with competitive interest rates and transparent loan process that come with these loans available online, you can be rest assured you are on the right track to starting your business.
4. Net profit Vs loan EMI calculator: Once you begin your business, knowing how affordable it would be to let go of EMIs without making a dent in your profits is crucial to keeping your start-up afloat. A business loan calculator that can analyse the performance of your business and estimate your net profits while keeping track of your monthly outgo as loan installments can help you be assured that your bottomline is not affected.
5. Debt affordability: A lender would look at the ability of your business to repay the loan amount by taking into account your revenues and operating expenditure and arriving at a debt service ratio. You can also easily find out this number by making use of a financing calculator to see your chances of securing a business loan.

As an entrepreneur, a business loan calculator should be your first step to assessing the eligibility for a loan that you wish to apply for, as well as knowing the feasibility of taking the loan in the long run and its effects. Business loan EMI calculator available online is an efficient way to quickly gauge your monthly EMI and its affordability in comparison to your future profits.

On Finserv MARKETS, not only can you avail loans for starting your business, but also find a plethora of personal loans to plan a wedding, renovate your home, travel abroad or even attend to a medical emergency. A convenient online application process, flexible loan tenures ranging from 12 months to 5 years, quick loan disbursal and minimum documentation are some of the features which make personal loans available on Finserv MARKETS irresistible!

They also come with complete transparency, assurance of no hidden charges whatsoever, with 24X7 accessibility on the go, so that you can keep track of your account wherever you are at all times. No wonder then that more than 100 million customers trust Finserv MARKETS with their personal loan requirements. So what are you waiting for? Join the bandwagon today.