What is Commercial Property Loan EMI?
Let’s first understand what an EMI is. An EMI (Equated Monthly Installment) is a fixed amount that is to be paid on a pre-decided date on a monthly basis by the borrower of a loan. It is a payment made to clear off an outstanding loan within the mutually agreed duration referred to as repayment tenure. An EMI amount includes interest and principal on the loan amount. Even though each EMI is equal, the components of the EMI, the interest and the principal amount vary every month.
commercial property loan EMIs are calculated based on the principal borrowed, rate of interest, and tenure of the loan. The higher the loan amount, the higher will be the EMI payable. One of the main factors that affect the EMI amount is the rate of interest. The higher the rate, the higher will be the EMI payable. Tenure of the loan also is an important factor. The longer the loan tenure chosen, the lower will be the EMI payable. However, during the initial days of your commercial property loan repayment, the interest amount is higher, and the principal amount is lower.
Gradually, the interest amount will decrease as the outstanding loan reduces. Our Commercial property loan EMI calculator is extremely useful for calculating EMIs. It’s an easy-to-use online tool that provides you with all the details you need.
How does the EMI calculator for commercial property loan work?
For the purpose of EMI calculation using the commercial property loan EMI calculator, you need to know the basic home details. They are commercial property loan interest rates charged, total loan amount, and tenure. The formula that is incorporated is as stated below:
E (EMI) = P * R * (1+R)^N / ((1+R)^N-1)
P is the principal loan amount borrowed, R is the commercial property loan rates, and N is the loan tenure in months. You need to enter these basic details on the EMI calculator and you will receive the EMI amount in just a few seconds.
Benefits of Commercial Property Loan Calculator
There are many benefits of a Commercial Property Loan EMI Calculator. It can help you make a perfect choice as per your repayment potential. Commercial Property Loan EMI calculator is a time efficient and precise method.
Let’s have a look at the benefits of a commercial property loan EMI calculator below:
1) Time saving and efficiency
It saves time because calculating EMIs manually would be a tedious task and can be prone to errors. Commercial Property Loan EMI Calculator gives you the details within seconds. The calculator will show the requisite details on your screen immediately.
2) High level of accuracy
A commercial property loan EMI Calculator is always accurate. Calculation of accurate EMIs can help you plan your finances based on your income and savings. You can depend on the calculator’s precision. Please do note however, that the calculator does not take into account other components that may be contributing to your monthly EMI, such as insurance.
3) Financial planning and goals achievement
The loan calculator can tremendously help you in financial planning. While assessing your business goals, you may want to try permutations of EMIs. The commercial property loan EMI Calculator lets you do exactly that. You can re-enter different details to get the desired results and complete clarity. You can evaluate different schedules by combining loan tenures and rates of interest.
You can get a commercial property loan for long term business expenses by taking a loan against property,, or you can take a property loan to purchase a new commercial property for their business. You can contact your nearest SMFG Grihashakti branch or apply online and we will be happy to assist you.