Whether for expansion, upgrades, or bolster working capital reserves, the financing you acquire should contribute to your bottom line. Therefore, planning a loan is important, as it helps you do just that.
Thankfully, this process is made much simpler with a Bajaj Finserv Business Loan Calculator. This free-to-use digital provision is an essential tool in any entrepreneur’s toolkit. To better understand the value of using a business loan calculator, look at the benefits you can enjoy.
Provides invaluable insight on loan offers in the market
You must avail the best business financing tool available to you. This is only possible if you do in-depth research, and a business loan calculator can help in this regard. It can be used to compare offers from different lenders based on their promotional rates on offer. This is usually the first approach and one that can work well for you as well.
Shortlist lenders or offerings based on their affordability after running a few initial calculations. Simply comparing interest rates isn’t enough. Check the fine print for any processing charges too. These two steps should help you narrow your choices down easily and get a comparative analysis of all the available products on offer. This is especially useful when you need a hefty sanction.
Gives you an accurate understanding of the cost
While availing of an online business loan has become easier, you should be aware of the cost. In this case, the cost is the total interest payable, plus other fees and applicable charges. Knowing the cost of borrowing is critical. A business loan calculator can help you arrive at that figure quickly and accurately. There’s no need for manual calculations here, and these digital provisions usually list all the essential details. A business loan calculator from a leading lender is sure to display 3 key figures, which are:
- Monthly instalment amount
- Interest payable
- Total amount payable
Assists you in making the right borrowing decisions
It is a prerequisite that you know exactly how much capital you’d need before you apply for an online business loan. However, arriving at this figure without doing some necessary calculations can be catastrophic for your business. It can cause you to borrow more than the business can afford and result in a substantialdrop in net profits. Using a business loan calculator can avoid this problem by checking the cost for varying sanctions. You can then finalise an amount that is well within budget and doesn’t deplete your profits.
Besides the sanction, the business loan calculator also helps you find suitable repayment plans. For instance, if your business can handle larger instalments in the initial months, the calculator can help you find a tenor that works.
Enables you to prepay the loan for maximum value optimally
A business loan calculator sometimes gives you access to the amortisation schedule as well. This is a visual table that contains the monthly breakup of the loan. It’ll show you the fragmentation of your EMIs and exactly how much of it is going towards principal repayment versus interest payments. You can find the best time to devote windfall gains or excess cash toward prepayments with this information. Usually, this is when the interest outgo is higher than the principal amount being repaid. For front-loaded loans, the early parts of tenor are when you should prepay for maximum value. Be sure to check the prepayment charges, if any.
Making the right borrowing decisions is a lot easier with reliable information. Armed with the business loan calculator, be sure to pick offerings smartly and make the most of your experience. An instrument that promises value at every turn is the Bajaj Finserv Business Loan. Loaded with features, it is an affordable business financing tool that can complement your efforts with ease.
With it, you get access to capital of up to Rs. 45 lakh at a competitive interest rate. Moreover, it is an online business loan and has all the perks to go with it. On meeting the simple requirements, you get instant approval within minutes and can enjoy online disbursal too. For a quick, hassle-free, and convenient experience, check your pre-approved offer in just a few clicks. Get this online business loan today and take your business to new heights with cost-effective financing.
Disclaimer: This content is distributed by Bajaj Finserv Markets. No TNIE Group journalist is involved in the creation of this content.