Loan Calculator

Loan = EMI × ((1 + r)^n − 1) ÷ (r × (1 + r)^n)

where r = annual rate ÷ 12 ÷ 100 and n = tenure in months

Lenders also apply a FOIR or DSCR limit, so your sanctioned amount can be lower than the mathematical maximum.

A ₹25,000 monthly EMI at 10.5% for 60 months supports a loan of roughly ₹11,63,000 with about ₹3,37,000 of interest.

Most borrowers start with a loan amount and discover the EMI afterwards. Lenders work the other way: they assess repayment capacity first and derive the sanction from it. Doing the same puts you in a stronger position at the bank and stops you committing to an instalment that only works in a good month.

Banks apply a fixed obligation to income ratio, typically keeping all EMIs within 40–50% of net monthly income, and businesses are assessed on debt service coverage instead, usually requiring cash profit of at least 1.25 to 1.5 times the annual repayment. Existing loans, credit card dues and guarantees you have given all count against that limit, so the eligible amount is often lower than the mathematical maximum this calculator shows.

Working capital and term loans are not interchangeable. Buying machinery or a vehicle belongs in a term loan matched to the asset's life; funding stock and receivables belongs in an overdraft or cash credit line, where you pay interest only on what you use. Financing recurring working capital with a term loan is a common and expensive mismatch.