Raw Material Financing Loans

NEVER LET SHORTAGE OF FUNDS BECOME AN OBSTACLE IN YOUR BUSINESS

As its name implies, our raw material financing loan is designed to help small businessmen keep their raw material inventory in check. Opt for My Mudra’s Raw Material Financing Loan and keep your business in good shape. 


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Raw Material Financing Loans

 

How To Calculate Your Raw Material Financing Loan EMI


There are three methods for calculating a Raw Material Purchasing Loan’s EMI, each with a different level of complexity and work required.

The simplest, quickest, and most straightforward approach to figure monthly installments is to utilize a Raw Material Purchasing Loan’s interest rate calculator, often known as a Working Capital Loan EMI calculator. All you have to do here is enter the values for the three major components, and the outcome is created automatically in seconds.

Loan Amount is

10k

10L

No. of Month is

12M

84M

Rate of Interest (ROI) is

5

35

Monthly EMI

Total Interest

Payable Amount

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Microsoft Excel: This approach is straightforward, although there is an opportunity for error. In this section, enter the 'PMT' formula into the Excel software. Once selected, correctly enter loan data into the following fields.

‘Rate’: It refers to the monthly rate of interest

‘NPER’: It denotes loan tenure in months

‘PV’: It refers to the loan amount or principal value

After feeding these details, make sure to leave the values for ‘FV’ and ‘Type’ as 0 and 1, correspondingly.

Manual method: This is considered the hardest way to calculate business loan EMI as it involves a manual calculation based on the following formula.

EMI = [P x R x (1+R) ^ N] / [(1+R) ^ (N-1)]

Please note:

‘P’ refers to the principal amount

‘N’ means tenure in months

‘R’ refers to the monthly interest rate applicable

Tips To Foreclose a Working Capital Loan

It's a good idea to make a commitment to prepaying a raw material purchasing loan before it matures. Prepayments can be very cost-effective for the company if handled properly. Prepaying, however, without enough planning might result in cash flow issues, which can have an impact on the organization. Take a look at this prepayment advice for working capital loans to learn how to prevent such pitfalls.

 

· The ideal time to prepay the loan must be determined by the project cash flow.

 

· Prepayments should be avoided throughout the slower months of the economic cycle.

 

· Before making a prepayment, consult the amortization scheme.

 

· Verify if there are any applicable prepayment penalties.

EMI Calculator


For business loans in India, My Mudra Fincorp provides a free EMI calculator to make loan planning simple. You can use it to compute the Business Loan EMI, determine the overall interest expense, and view the amortization schedule for a more thorough understanding of payments.

emi-calculator
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How To Reduce EMIs On A Raw Material Financing Loans?

There are a few ways to reduce the professional loan EMI amount.

  • Opt for a smaller sanction
  • Choose a longer tenure
  • Negotiate for a lower interest rate
  • Prepay the professional loan at least once during the tenure.

Before trying any of these tactics, be sure to use a professional loan calculator and conduct a thorough cost-benefit analysis.

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