{"id":22411,"date":"2021-10-07T12:16:37","date_gmt":"2021-10-07T12:16:37","guid":{"rendered":"https:\/\/tata-blog.osian.dev\/blog\/?p=22411"},"modified":"2021-10-07T12:17:48","modified_gmt":"2021-10-07T12:17:48","slug":"emi-calculators-and-business-loans-facts-and-myths","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-business\/emi-calculators-and-business-loans-facts-and-myths\/","title":{"rendered":"EMI Calculators and Business Loans \u2013 Facts and Myths"},"content":{"rendered":"\n

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Let\u2019s face it! Running a business is impossible without adequate funds. Taking a loan for your growing business is a quick and easy way to meet your organisation\u2019s financial needs.<\/p>\n\n\n\n

However, a lot of business owners are hesitant to take this route due to numerous misconceptions. So here are some facts and myths about loans and EMI calculators for businesses. <\/p>\n\n\n\n

Myth #1: They are hard to get<\/strong><\/h2>\n\n\n\n

Fact:<\/strong> Contrary to popular opinion, getting a loan for your business is very convenient. The loan application process requires minimal paperwork, and the loan approval and disbursal process are swift. <\/p>\n\n\n\n

Myth #2: You need a perfect CIBIL score<\/strong><\/h2>\n\n\n\n

Fact: <\/strong>Your CIBIL score depicts your creditworthiness on a scale of 300 to 900, 300 being the lowest. You do need a good credit score, but it does not have to be a perfect 900. For most lenders, a score of 700 and above is enough to prove your business loan eligibility.<\/p>\n\n\n\n

Myth #3: They\u2019re expensive funding options because you borrow a hefty loan amount<\/strong><\/h2>\n\n\n\n

Fact:<\/strong> The loan amount and tenure depend on your business needs. Typically, you can avail of a loan worth Rs. 5,00,000 to Rs. 75,00,000. Using a business loan EMI calculator<\/a>, <\/strong>you can decide on a loan amount you can comfortably repay.<\/p>\n\n\n\n

Additional Read: <\/strong>Know the Benefits of Using a Business Loan EMI Calculator before Applying?<\/a><\/p>\n\n\n\n

Myth #4: Business EMI calculators are hard to use<\/strong><\/h2>\n\n\n\n

Fact: <\/strong>EMI calculators are easy-to-use tools. All you need to do is enter the amount you\u2019d like to borrow, the approximate time you\u2019ll take to repay it, and the calculator will estimate your EMI amount. <\/p>\n\n\n\n

Using the loan calculator, you can plan your instalments, manage additional business expenses, and timely pay off the loan.<\/p>\n\n\n\n

Pro-tip: You can use this tool to compare lenders and plan your monthly budget.<\/p>\n\n\n\n

Myth #5: Business loan interest rates are high<\/strong><\/h2>\n\n\n\n

Fact: <\/strong> If your business is flourishing and you have a good repayment record, you can negotiate with your lender to qualify for more competitive rates of interest. To bag lower interest rates, you need a healthy CIBIL score. Additionally, your business must have:<\/p>\n\n\n\n