Business Loan EMI Calculator India — FY 2025-26
Calculate your MSME or business loan EMI, check Mudra loan eligibility, and see how much tax you save on interest. Enter your loan amount to get instant EMI, total interest, amortization schedule, and processing fee estimate. Includes PMMY Mudra category check and CGTMSE collateral-free loan info.
Try another scenario
How to Use This Calculator
Business Loan EMI tab
Enter your loan amount, interest rate, and loan tenure. The calculator instantly shows your monthly EMI, total interest payable, estimated processing fees, and a year-wise amortization summary showing principal vs interest split for each year.
Mudra Loan Check tab
Enter how much you need and see which PMMY Mudra category you fall into — Shishu, Kishore, Tarun, or Tarun Plus. The calculator shows the applicable rate range and compares the EMI and total interest cost against a regular business loan, so you can see exactly how much you save with Mudra.
Tax Benefit tab
Enter your annual interest paid and select your tax regime (corporate rate or individual slab). The calculator shows how much tax you save when business loan interest is deducted as a business expense, with a comparison across all common tax brackets.
Share your result
Every input is encoded in the URL. Click Share to send your exact scenario to a CA, business partner, or save it for your loan application.
The Formula
Business loan EMI is calculated using the standard reducing balance (amortizing) formula:
EMI = P × r × (1 + r)n / [(1 + r)n − 1]
Where:
P = Principal (loan amount)
r = Monthly interest rate (annual rate / 12 / 100)
n = Total number of months (years × 12)
Total Interest:
Total Interest = (EMI × n) − P
Tax Benefit on Interest:
Tax Saved = Annual Interest Paid × Applicable Tax Rate
Effective Interest Cost = Annual Interest − Tax Saved
Processing Fee:
Upfront Cost = Processing Fee (1-3% of loan) + GST (18% on fee)
The EMI formula assumes a fixed interest rate and equal monthly payments throughout the tenure. Each payment splits into interest (on remaining balance) and principal repayment. In the early years, a larger portion goes toward interest; toward the end, most of the EMI repays principal.
Example
Rajesh — Pune MSME owner, &rupee;20 lakh business loan at 12% for 5 years
Rajesh runs a small manufacturing unit in Pune (Udyam-registered MSME). He needs &rupee;20,00,000 to purchase new machinery. SBI quotes 12% p.a. with 2% processing fee.
Step 1: EMI calculation
Step 2: Result
Step 3: Tax benefit
Rajesh pays &rupee;44,489/month EMI. Over 5 years, he pays &rupee;6.69 lakh in interest. But since interest is a deductible business expense, at 25% corporate tax rate (26% with cess), he saves approximately &rupee;1.74 lakh in tax over the loan tenure, bringing effective interest cost down to ~&rupee;4.95 lakh.