Business Loan Comparison Calculator
Business loans fuel growth and operations. Compare up to three business loan options with Loanpao’s advanced calculator to find the most cost-effective deal for your enterprise, whether for expansion, working capital, or equipment purchase.
Compare Business Loans
What Is Business Loan Comparison?
Business loan comparison involves evaluating multiple loan offers based on loan amount, interest rate, tenure, and repayment terms to identify the most cost-effective option for funding business needs, such as expansion, working capital, or equipment purchase.
How To Use Business Loan Comparison Calculator
To use the business loan comparison calculator, follow these steps:
- Enter the loan amount, interest rate, and tenure for up to three business loans.
- Click "Compare Loans" to view EMI, total interest, and total repayment for each loan.
- Review the results table and chart to choose the best loan option.
How Is Business Loan Comparison Calculated?
The comparison is based on the EMI formula: EMI = P × r × (1+r)^n / [(1+r)^n - 1], where:
- P = Loan amount
- r = Monthly interest rate (annual rate / 12 / 100)
- n = Loan tenure in months
For example, for a ₹50,00,000 loan at 12% interest for 5 years:
- Monthly rate = 12% / 12 / 100 = 0.01
- Months = 5 * 12 = 60
- EMI = 50,00,000 × 0.01 × (1+0.01)^60 / [(1+0.01)^60 - 1] ≈ ₹1,11,221
- Total Repayment = 1,11,221 × 60 ≈ ₹66,73,260
- Total Interest = 66,73,260 - 50,00,000 = ₹16,73,260
The calculator compares these metrics across multiple loans.
Business Loan Comparison Criteria
| Criteria | Details |
|---|---|
| Interest Rate | Lower rates reduce EMIs and total interest paid. |
| Loan Tenure | Shorter tenures increase EMIs but reduce total interest. |
| Collateral | Secured loans may offer lower rates than unsecured loans. |
| Business Type | Rates may vary for startups, SMEs, or large enterprises. |
Frequently Asked Questions
Comparing business loans helps you find the most affordable option, saving on interest and fees, and ensuring the loan aligns with your business goals.
Key factors include interest rates, loan tenure, collateral requirements, and business type (e.g., startup, SME).
Yes, this calculator allows comparison of both secured and unsecured loans, adjusting for different rates and terms.