Calculate EMI
Business loans for Indian shopkeepers
Whether you are buying a new display counter, refrigerator, billing machine, or expanding to a second location - knowing your monthly EMI before taking a loan helps you plan. The most common business loan options for small Indian shops:
| Loan type | Amount | Typical rate |
|---|---|---|
| Mudra - Shishu | Up to ₹50,000 | 8–10% |
| Mudra - Kishor | ₹50K – ₹5 lakh | 10–12% |
| Mudra - Tarun | ₹5L – ₹10 lakh | 10–14% |
| PSU bank business loan | ₹1L – ₹50 lakh | 10–14% |
| NBFC business loan | ₹50K – ₹25 lakh | 14–24% |
Frequently Asked Questions
How is EMI calculated?
EMI (Equated Monthly Installment) is calculated using the formula: EMI = P × r × (1+r)^n / ((1+r)^n - 1), where P is the loan principal, r is the monthly interest rate, and n is the number of months. This ensures equal monthly payments over the loan tenure.
What is a typical business loan interest rate in India?
Business loan rates in India range from 8% to 24% per year depending on the lender, loan type, and borrower profile. PSU banks offer 8-12%, private banks 10-16%, and NBFCs 14-24%. Mudra loans under PMMY offer rates as low as 8-10% for small businesses.
What is the Mudra loan scheme?
Pradhan Mantri Mudra Yojana (PMMY) offers loans up to ₹10 lakh for small businesses. Three categories: Shishu (up to ₹50,000), Kishor (₹50,001 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh). No collateral required. Available at most banks and NBFCs.
Should I take a loan to expand my shop?
Consider a loan if: (1) your monthly profit can comfortably cover the EMI, (2) the expansion will increase revenue enough to pay back the loan within 2-3 years, and (3) you have an emergency fund for 3 months of EMI. Use this calculator to check if the monthly EMI fits your budget before applying.
Track your business finances alongside loan payments
Hisab Expert tracks income, expenses, and credit - so you always know if your EMI fits your budget.