Business Loan EMI Calculator
Compare secured bank MSME loans with unsecured NBFC business loans. Default rate is a typical unsecured loan.
What you pay each year
Repayment schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹2,75,853 | ₹1,57,976 | ₹7,24,147 |
| 2 | ₹3,29,815 | ₹1,04,014 | ₹3,94,332 |
| 3 | ₹3,94,332 | ₹39,496 | ₹0 |
Assumes a fixed rate for the whole business loan tenure. Floating-rate loans change when the repo rate changes.
Business Loan rates as of 5 November 2026
| Lender | Rate a year | Notes |
|---|---|---|
| Bajaj Finserv (unsecured) | 14% – 25% | Fee page shows a wider 9.75%–30% |
| Lendingkart (unsecured) | from 17.25% – 19.20% | Up to ₹35 lakh, 6–36 months |
| Bank MSME term loan (secured) | about 9% – 14% | EBLR plus spread; no 2026 bank page confirmed |
Unsecured business loans usually carry a 2%–3% fee; Bajaj Finserv lists up to 3.54% including tax, Lendingkart up to 3%.
RBI policy rates
- Repo rate
- 5.50%
- SDF
- 5.25%
- MSF
- 5.75%
- Bank rate
- 5.75%
- CRR
- 3.00%
- SLR
- 18.00%
Last change 7 October 2026 (25 bp hike from 5.25%, stance: calibrated tightening). Next meeting 2–4 December 2026.
Source: rbi.org.inFrequently asked questions
How is business loan EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. Early EMIs are mostly interest; the principal share grows every month.
Why did loan rates go up in October 2026?
RBI raised the repo rate by 25 basis points to 5.5% on 7 October 2026. Most floating-rate loans are linked to the repo rate (EBLR or RLLR), so banks repriced them from mid-October.
Is interest on a business loan tax-deductible?
Yes. Interest on a loan used for business is a deductible expense under Section 36(1)(iii); the principal is not.