Commercial property loans have been one of the most common methods of borrowing money from external sources such like banks, non-banking financial companies or financial institutions to start a new business venture or do expansion of existing business.
What is an EMI?
An EMI stands for equated monthly instalments that is a pre-defined fixed amount to be paid on a specific date each month by the borrower in order to clear off an outstanding loan within the set-out time frame.
An EMI amount includes the interest plus the principal amount Commercial property loan accrued on the loan amount.
Commercial loan EMI calculator
Calculating EMIs manually can be a very time consuming and complicated process. This is where a Commercial loan EMI calculator comes in handy. A Commercial loan EMI calculator is an online tool that helps you calculate your loan equated monthly installments based on the details you provide.
Howsoever, the EMI of your loan will be equal but the components of the EMI like interest and principal amount will vary on a month-to-month basis.
Generally, at the initial phase of loan repayment, the interest amount is higher, and the principal amount is lower while gradually, the interest amount reduces as your total outstanding loan amount gets reduced at each repayment and thereby primary component gets increased.