Factors that affect commercial loan EMI
                     FACTORS THAT AFFECT 
COMMERCIAL LOAN EMI
HERE ARE SOME FACTORS LENDERS TAKE INTO 
CONSIDERATION BEFORE GRANTING BUSINESS LOANS
 A business loan is a quick way to meet 
business expenses. It can be for 
business expansion or meeting several 
sectors of business. A business loan is 
always a good option, but a low EMI 
will always make borrowing easy and 
smooth. The consideration should be 
to keep the 
business loan interest rate low, so 
that the EMI for the month will be low. 
There are other factors behind the EMI 
amount. Check them out. 
WHAT IS EMI? 
 When you take a business loan, 
 the repayment is done on the 
basis of an EMI scheme. The 
equated monthly installments 
will be paid by the borrower 
every month to close the loan 
within the tenure. This amount 
will have the principal amount 
and the rate of interest added 
to it. The main idea should be 
to keep the business loan 
interest rate low so that the 
EMI is also low. 
PRINCIPAL BORROWED 
 The principal loan amount that you will 
need to start, grow or expand a 
particular small business. The higher the 
amount of loan, the amount of EMI 
payable will also be very high. Make sure 
you choose the right principal amount. 
Click here for house repair loan.
 Rate of interest – One prime factor that 
will affect the EMI amount will be the 
rate of interest on the business loan. The 
higher the interest rate on the business 
loan, the more EMI you will have to pay 
every month. That is why you must do a 
good comparison and then only go for the 
lowest rate of interest.
TENURE OF THE LOAN 
 The tenure is directly responsible 
for the EMI amount every month. A 
long-term loan will give you low EMI 
as the tenure is longer. For a short-
term loan, you will get a high 
amount as there is a low time to 
repay the loan. This will help you 
understand the loan amount in the 
right way. 
 Monthly rest period – Under and 
according to the monthly rest 
period, the rate of interest will be 
completely based on the overdue or 
outstanding principal amount. That 
signifies that with every EMI amount 
that one pays, there will be a huge 
reduction in interest over time. 
ANNUAL REST PERIOD 
 Under the annual rest, the 
payment for the EMI of a loan 
can be calculated based on the 
interest that is calculated on a 
personal loan will be 
reevaluated at the end of every 
annual year. 
WRAPPING UP
 Try to keep your business loan 
interest rate low. Only then can 
you make the best use of the 
funds. The burden will be low 
and the low EMI will be very 
easy to pay back. Make sure you 
go for a low business loan 
interest rate. 
Clix Capital Services Private Limited
Address: 
901b, 9th Floor, Two Horizon Centre, DLF Phase V, Gurgaon, Haryana, India – 
122002
Phone Number: 1800 200 9898
Email  us at : [email protected]
Website: www.clix.capital