How to interpret your result
Monthly EMI is your fixed monthly payment; Total Interest is the true cost of borrowing over the full tenure; Total Repayment (principal + interest) is what you'll pay back in all. A longer tenure lowers your EMI but raises total interest — don't choose a tenure on EMI affordability alone without checking what it does to the total cost.
This EMI structure applies if your working capital facility is a term loan. Overdraft and cash-credit facilities — more common for working capital — charge interest only on the amount drawn, not on the full sanctioned limit, so the EMI shown here will overstate your actual cost if that's the facility you have.
This calculator assumes a standard reducing-balance EMI schedule. If your lender quotes a flat-rate loan instead, your actual interest cost will run noticeably higher than the reducing-balance figure shown here for the same headline rate — always ask which method applies before comparing offers.
Working capital: the fuel your business runs on
Most profitable businesses have failed not because of bad products — but because they ran out of cash at the wrong moment. A seasonal spike, a delayed customer payment, or a bulk inventory opportunity can all create a working capital gap that a loan can bridge.
Working capital loan types for e-commerce and MSME sellers
See the loan type comparison above to find which structure fits your cash flow pattern.
Typical rates for MSMEs (2025)
See current MSME lender rates, collateral requirements, and max amounts above.
Should you borrow for working capital?
A working capital loan makes sense when:
- Your return on capital exceeds the interest rate (e.g., you earn 25% margin and borrow at 18%)
- You need to meet a large order that you'd otherwise miss
- Cash flow timing mismatch — you've shipped the goods but payment is 30 days away
Avoid if you're borrowing to cover operating losses — that's a business model problem, not a cash flow problem.