Term Loan & Overdraft Calculator

Approximate Eligible Loan Amount

₹ ____________

Disclaimer: This is an indicative calculation to help investors and borrowers make informed decisions. Please check the variety of Tax calculations from your tax advisor. The returns taken in calculations are indicative and may be different for different schemes, asset classes, and duration of investment made by investors.

Planning to borrow and wondering how much you’ll repay? Whether you’re looking for a term loan or an overdraft facility, our easy-to-use calculator helps you quickly evaluate your repayment amounts. Get exact insights in just a few clicks!

What This Calculator Does

This handy tool helps you:

Calculate monthly payments for term loans
Determine interest costs for overdraft facilities
Compare the total cost of both financing options
Visualize your repayment schedule
Find the best borrowing solution for your needs

Understanding Your Options

Term Loan

A term loan provides a lump sum amount that you repay over a fixed period through regular installments. Perfect for specific purchases, projects, or investments with a specified timeline.

Overdraft

An overdraft facility gives you flexible access to funds up to a predetermined limit, with interest charged only on the amount you use. Ideal for managing cash flow instabilities or unexpected expenses.

How to Use This Calculator

Step 1: Enter Your Loan Details

Loan Amount: How much do you need to borrow?
Loan Term: For term loans, select the repayment period (in months or years)
Interest Rate: Enter the annual interest rate offered by your lender

Step 2: Specify Additional Parameters

Processing Fee: Any upfront charges (as a percentage or fixed amount)
Overdraft Limit: Maximum amount available for your overdraft facility
Average Utilization: Estimated percentage of overdraft you expect to use

Step 3: Review Your Results

Our calculator will instantly show you the following:

The monthly installment amount for the term loan
Total interest payable over the loan period
Estimated interest cost for the overdraft option
Comparative analysis of both options
Recommended option based on your usage pattern

Making Sense of Your Results

When a Term Loan Makes Sense

When you need a fixed amount for a specific purpose
When you prefer predictable monthly payments
For long-term investments or major purchases
When you want a clear repayment timeline

When an Overdraft Is Better

When your funding needs fluctuate
For managing seasonal cash flow variations
When you want to pay interest only on what you use
For emergency funds or short-term needs

Financial Terms Simplified

EMI (Equated Monthly Installment): The fixed amount you pay each month toward your term loan, including both principal and interest.
Drawdown: The act of withdrawing money from your overdraft facility.
Commitment Fee: A charge some lenders apply on the unused portion of your overdraft limit.
Principal: The original loan amount, excluding interest.
Repayment: The process of gradually paying off your loan through regular payments.

Tips for Borrowers

Compare the true cost: Look beyond the interest rate—consider all fees.
Match the facility to your need: Choose a term loan for fixed expenses and an overdraft for variable ones.
Watch for hidden costs: Ask about early repayment penalties and annual fees.
Negotiate terms: Don't accept the first offer—lenders often have flexibility.
Repayment plan: Ensure you have a clear strategy to manage and repay your debt.

Ready to Calculate?

Use our insightful calculator below to explore your options and find the borrowing solution that fits your financial situation perfectly.

Term Loan & Overdraft
CALCULATOR

Approximate Eligible Loan Amount

OPTION 1

TERM LOAN

OPTION 2

OVERDRAFT