Term loan planning
Term Loan EMI Calculator.
Estimate your monthly EMI for a term loan — used for equipment purchase, facility expansion, or infrastructure financing — and see the full repayment schedule before you apply.
- Principal amount
- ₹25,00,000
- Total interest
- ₹10,95,704
- Total amount
- ₹35,95,704
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹2,51,082 | ₹2,62,590 | ₹22,48,920 |
| 2 | ₹2,80,136 | ₹2,33,536 | ₹19,68,784 |
| 3 | ₹3,12,553 | ₹2,01,119 | ₹16,56,232 |
| 4 | ₹3,48,721 | ₹1,64,951 | ₹13,07,512 |
| 5 | ₹3,89,072 | ₹1,24,600 | ₹9,18,438 |
| 6 | ₹4,34,095 | ₹79,577 | ₹4,84,342 |
| 7 | ₹4,84,330 | ₹29,342 | ₹11 |
Term loan vs. working capital loan
A term loan funds a specific capital purchase or project with a fixed repayment schedule — think buying machinery or expanding a facility. A working capital or business loan, by contrast, funds day-to-day operating needs and often has a shorter, more flexible structure. Rates and tenure differ accordingly: term loans backed by the asset they fund tend to run longer and cheaper than unsecured working capital.
Frequently asked questions
What is a term loan, and how is it different from a business loan?
A term loan is any loan disbursed as a lump sum and repaid over a fixed period through regular installments — the broader category that business loans, home loans, and car loans all technically belong to. In common banking usage, "term loan" specifically refers to a structured loan for capital expenditure — buying equipment, expanding a facility, or infrastructure — as opposed to short-term working capital financing.
How is term loan EMI calculated?
Term loan EMI uses the standard reducing-balance formula: EMI = P × r × (1+r)^n / ((1+r)^n − 1). Tenure typically runs 1-10 years, occasionally longer for large infrastructure-linked term loans, with rates depending heavily on whether the loan is secured against the asset being purchased.
Is a term loan fixed or floating rate?
Both exist. A fixed-rate term loan keeps your EMI constant for the entire tenure, useful for predictable budgeting. A floating-rate term loan moves with the lender's benchmark rate, which can lower your cost if rates fall but adds uncertainty — check which structure your lender is offering before comparing quotes.