What factors influence the EMI calculation for a secured business loan?

Several factors influence the Equated Monthly Instalment (EMI) for a secured business loan:

• Principal Amount: The larger the loan, the higher the EMI.
• Interest Rate: Higher interest rates lead to higher EMIs.
• Loan Tenure: Longer tenures generally result in lower EMIs but higher total interest.
• Processing Fee: A one-time charge that adds to the overall cost.
• Other Charges: Can vary, check with the lender.
• Interest Rate Type: Fixed rates are predictable, while variable rates can fluctuate.
• Repayment Frequency: Monthly, quarterly, or weekly payments affect EMI.
• Prepayment Penalties: Early repayment might save interest but check for penalties.
• Government Subsidies or Schemes: Can lower overall cost and EMI.
• Collateral Value: Higher value can lead to a lower interest rate, reducing EMI.
• Credit Score: A better credit score can result in more favourable terms and lower EMIs.
• Business Performance: Strong financials may lead to better loan terms.
• Market Conditions: Economic factors can influence interest rates and loan availability.

Consider these factors carefully when choosing a secured business loan.