Lowest Business Loan EMI per lakh

As per the current rate of 13.50%, DCB Bank offers the lowest business loan EMI of Rs. 2,301 for 5 years on per lakh loan amount. The EMI can vary depending upon the interest rate, loan amount and loan tenure. Higher the loan amount, higher will be the EMI.

Factors affecting Business loan EMI

• Loan amount – The amount you need to borrow for business expansion or purpose. Higher the loan amount, higher will be the EMI.
• Rate of interest – The interest rate on a loan is an important determinant of the EMI. Higher the interest rate, higher will be the EMI and vice-versa.
• Loan Tenure – Longer the loan tenure, lower the EMI. Longest loan tenure for business loan in India is 5 years.

The following table provides a comparison of EMI for a Rs. 1 lakh loan at different tenures:

For a business loan at 13.50% interest rate, the EMI per Rs. 1 lakh loan amount is as below:

• At the lowest business loan rate of 13.50% for a maximum tenure of 5 years, the lowest EMI translates to Rs. 2,301 per lakh. In this case, you have to pay an interest of Rs. 94,227 on your loan amount of Rs. 1 lakh over a period of 5 years.
• If you decide to take a loan for 2 years only, for the same rate of interest you will pay a higher EMI of Rs. 4,778 . In this scenario you pay a total interest of Rs. 30,414 on your loan amount of Rs. 1 lakh over a period of 2 years, which is less than half of what you paid for a 5 years loan.