What is the EMI on a ₹25 Lakh business loan for 5 years?

At the lowest listed starting rate of 10.25% (SBI) in this snapshot, the EMI is ₹53,426. Your actual EMI depends on your CIBIL score, income, profile and chosen lender.

How much total interest will I pay?

At 10.25%, total interest is ₹7,05,560. At the highest listed starting rate (14%), it is ₹9,90,260.

Can I reduce the EMI further?

Three levers can change the result: (1) Increase tenure by 5 years — this can lower EMI but raise total interest; (2) Compare each lender's current quote, not just the listed starting rate; (3) Add a co-applicant only if the lender's eligibility rules and your repayment plan support it.

What if I pre-pay part of the loan?

Under RBI rules, floating-rate loans to individual borrowers carry no pre-payment penalty. A ₹5–10 lakh pre-payment in year 3–5 can cut several years off the tenure. Fixed-rate loans and some business loans may carry a pre-payment charge — check the Key Fact Statement.

₹25 Lakh Business Loan EMI for 5 Years

Reviewed by Jay Patel· Last reviewed: 25 Apr 2026

EMI, total interest paid, and how each lender's listed starting rate changes the cost of a 5-year loan.

Money Matrix Hub insight

On a ₹25 Lakh business loan for 5 years, the lowest listed starting rate in this dataset (SBI at 10.25%) produces ₹7,05,560 in total interest, while the highest listed starting rate (Bajaj at 14%) produces ₹9,90,260 — a difference of ₹2,84,700 between listed lenders.

Source:Lender websites, rates as of September 2026
Source:Standard reducing-balance EMI formula

Loan amount

₹25 Lakh

Tenure

5 years

EMI at lowest listed rate (10.25%)

₹53,426

Bank-wise EMI (published floor rates)

Bank	Rate	EMI	Total interest	Total payable
SBI	10.25%	₹53,426	₹7,05,560	₹32,05,560
PNB	10.35%	₹53,549	₹7,12,940	₹32,12,940
BoB	10.5%	₹53,735	₹7,24,100	₹32,24,100
Canara	10.5%	₹53,735	₹7,24,100	₹32,24,100
Union	10.5%	₹53,735	₹7,24,100	₹32,24,100
HDFC	10.75%	₹54,045	₹7,42,700	₹32,42,700
ICICI	11%	₹54,356	₹7,61,360	₹32,61,360
Federal	11%	₹54,356	₹7,61,360	₹32,61,360
Tata	11%	₹54,356	₹7,61,360	₹32,61,360
Axis	11.25%	₹54,668	₹7,80,080	₹32,80,080
Kotak	11.5%	₹54,982	₹7,98,920	₹32,98,920
LIC	11.5%	₹54,982	₹7,98,920	₹32,98,920
Bandhan	12%	₹55,611	₹8,36,660	₹33,36,660
IDFC	12.99%	₹56,870	₹9,12,200	₹34,12,200
Bajaj	14%	₹58,171	₹9,90,260	₹34,90,260

Rates reflect bank-published starting floors; actual rate depends on borrower profile, LTV, and property APF status.

How the lender you choose changes the math

On this exact loan (₹25 Lakh, 5 years), the gap between the lowest listed starting rate (SBI at 10.25%) and the highest (Bajaj at 14%) is ₹2,84,700 in total interest paid.

FAQ

What is the EMI on a ₹25 Lakh business loan for 5 years?: At the lowest listed starting rate of 10.25% (SBI) in this snapshot, the EMI is ₹53,426. Your actual EMI depends on your CIBIL score, income, profile and chosen lender.
How much total interest will I pay?: At 10.25%, total interest is ₹7,05,560. At the highest listed starting rate (14%), it is ₹9,90,260.
Can I reduce the EMI further?: Three levers can change the result: (1) Increase tenure by 5 years — this can lower EMI but raise total interest; (2) Compare each lender's current quote, not just the listed starting rate; (3) Add a co-applicant only if the lender's eligibility rules and your repayment plan support it.
What if I pre-pay part of the loan?: Under RBI rules, floating-rate loans to individual borrowers carry no pre-payment penalty. A ₹5–10 lakh pre-payment in year 3–5 can cut several years off the tenure. Fixed-rate loans and some business loans may carry a pre-payment charge — check the Key Fact Statement.

Jay Patel

Co-Founder & Chief Loan Advisor

Check current lender terms for your loan

WhatsApp Jay with your CIBIL band, income, and property location to discuss current lender terms and the assumptions behind this comparison.

EMI calculations assume a flat rate for the full tenure. In practice, floating rates change with the RBI repo. Listed rates are a dated comparison snapshot; actual lender pricing, eligibility, fees, and terms must be confirmed before applying.