₹1 crore Business Loan EMI for 10 Years
A ₹1 crore business loan over 10 years at 15% interest (typical for unsecured MSME loans) produces a monthly EMI of roughly ₹1.6 lakh. Business loan interest is fully tax-deductible under Section 37, reducing your effective post-tax cost to about 10–11%. For collateral-backed loans (LAP), you could secure rates as low as 10–12% — a significant saving over 10 years.
Rate Comparison for ₹1 crore / 10 Years
| Rate | Monthly EMI | Total Interest | Total Payment |
|---|---|---|---|
| 8% | ₹1,21,328 | ₹45,59,311 | ₹1,45,59,311 |
| 10% | ₹1,32,151 | ₹58,58,088 | ₹1,58,58,088 |
| 12% | ₹1,43,471 | ₹72,16,514 | ₹1,72,16,514 |
| 15% | ₹1,61,335 | ₹93,60,195 | ₹1,93,60,195 |
About This Scenario
A ₹1 crore business loan over 10 years at 15% interest (typical for unsecured MSME loans) produces a monthly EMI of roughly ₹1.6 lakh. Business loan interest is fully tax-deductible under Section 37, reducing your effective post-tax cost to about 10–11%. For collateral-backed loans (LAP), you could secure rates as low as 10–12% — a significant saving over 10 years.
Frequently Asked Questions
What is the maturity of ₹1 crore monthly RD for 10 years?
At 7% quarterly-compounded, a ₹1 crore monthly RD for 10 years matures at ₹1.6 lakh. Of this, ₹93.6 lakh is interest earned.
Is RD interest taxable?
Yes. Treated exactly like FD interest — taxable under 'Income from Other Sources' at your slab rate. TDS applies if annual interest from the bank exceeds ₹40,000 (₹50,000 for senior citizens).
RD vs SIP — which is better?
RD gives guaranteed but lower returns (6–7.5%) with sovereign-level safety. SIP in equity mutual funds targets 11–14% historically with market risk. For 5+ year horizons, SIP typically creates 2–3x more wealth.
Can I skip an RD instalment?
Most banks allow 2–4 missed instalments without penalty, but later missed instalments can lead to account closure. Set up auto-debit to avoid the issue.