Calculate monthly EMI for business loans, MUDRA, home loans, vehicle loans, and personal loans. Reducing balance + flat rate modes — with total interest breakdown.
Reducing Balance for banks/MUDRA. Flat Rate for some NBFCs and hire-purchase.
Amount, annual interest rate, and tenure (years or months).
Monthly EMI, total interest, total payable — across the full tenure.
Reducing Balance is what most banks, NBFCs, and government loans (MUDRA, Stand-Up India) use. Interest is calculated on the remaining principal each month — so as you pay down the loan, the interest portion of each EMI shrinks. You actually pay less total interest than the flat rate at the same nominal interest rate.
Flat Rate is used by some hire-purchase lenders, vehicle dealers' in-house financing, and a few NBFCs. Interest is calculated on the original loan amount for the full tenure — even after you've paid down most of the principal. The effective interest rate ends up being roughly 1.8× to 2× the stated flat rate.
If a lender quotes "12% flat" — that's typically equivalent to ~22% reducing balance. Always compare loans on a reducing-balance basis.
Yes — the math matches standard bank/RBI formulas. But your actual EMI may include small processing fees, GST on interest (for some products), or insurance premiums. Always check the bank's amortization schedule for the exact figure.
Three ways: (1) Negotiate a lower interest rate, especially if your credit score is good. (2) Increase the tenure (lower EMI, but more total interest). (3) Make a larger down payment to reduce the principal.
Under 12% reducing is excellent. 12-15% is normal for established businesses. Above 18% means the lender sees you as high-risk — try MUDRA, SIDBI, or PSB Loans in 59 Minutes instead.
Yes, in most loans. Banks usually have 0% prepayment fee for floating-rate loans, but check for fixed-rate loans which may charge 2-4% prepayment penalty.