Tools/Business Line of Credit Payment Calculator
Business Line of Credit Payment Calculator
Work out what your credit line actually costs each month - interest applies only to what you draw, not the full limit.
Utilisation Details
Total interest for 90 days
₹1,47,945
Effective monthly cost
₹49,315
Calculated at 12% p.a. on ₹50 Lakh
125+ lenders. Termsheet in 48h. Zero equity dilution.
How line of credit payments work
A business line of credit gives you a sanctioned limit you can draw from, repay, and redraw as needed. Your monthly payment is interest on the drawn balance - and with most Indian lenders, you can repay principal any time without penalty.
That structure makes a credit line ideal for gaps between paying suppliers and collecting from customers. The discipline it demands: treat it as revolving working capital, not a permanent loan - a line that stays fully drawn year-round is just an expensive term loan.
Explore Working Capital LoansWhat is a business line of credit payment calculator?
This calculator shows the monthly interest payment on a business credit line based on the amount you keep drawn and your interest rate. Credit lines for Indian businesses typically price at 12-20% p.a. depending on whether they are secured and how strong your banking is.
How to use this calculator
- 1
Set the amount you typically keep drawn - not the full sanctioned limit.
- 2
Set your interest rate - business credit lines in India usually run 12-20% p.a.
- 3
Read the monthly and annual interest cost at that utilisation level.
- 4
Test different utilisation levels to see how drawing more or less changes the payment.
Credit line vs term loan vs overdraft
Line of credit
Draw, repay, redraw - pay interest only on the drawn balance. Best for recurring, fluctuating needs.
Term loan
Full amount upfront, fixed EMI. Best for one-time investments - usually a lower rate than a credit line.
Overdraft
Functionally similar to a credit line but attached to your current account; renewal is annual.
Blend for best cost
A base term loan for the permanent need plus a credit line for spikes usually beats either alone.