If you’re running a business in India, managing your cash flow efficiently is crucial—and one way to ease financial pressure is by reducing your EMI on business loans.
Whether your business is facing a temporary downturn or you’re just looking to optimise your finances, there are several smart, legal ways to lower your monthly EMI burden without hurting your credit.
In this guide by Bravima Solution Pvt Ltd, we’ll explore proven strategies to reduce your EMI on business loans—especially those offered by NBFCs like Bajaj Finserv and Tata Capital.
What is EMI in a Business Loan?
EMI (Equated Monthly Installment) is the fixed monthly amount you pay to your lender to repay the loan, which includes both the principal and the interest.
The EMI depends on:
- Loan Amount
- Interest Rate
- Tenure
- Loan Type (secured/unsecured)
Even a small reduction in EMI can free up working capital and improve your business’s cash flow.
Top 7 Ways to Reduce Business Loan EMI in India
1. Increase Your Loan Tenure
One of the most direct ways to reduce EMI is by increasing the loan repayment period. A longer tenure spreads the principal and interest over more months, reducing the monthly burden.
🔍 Example: A ₹10 lakh loan over 3 years vs 5 years can lower your EMI by ₹6,000–₹8,000 per month.
2. Refinance Your Loan with a Lower Interest Rate
NBFCs like Bajaj Finserv and Tata Capital often offer balance transfer options. You can transfer your loan from a high-interest lender to one offering lower rates, and thereby reduce your EMI.
Benefits of refinancing:
- Lower interest
- Better terms
- Top-up facility
Apply for Business Loan @ low interest rate
3. Make a Part-Prepayment
If your business has a surplus in a particular month, consider part-prepaying your loan. NBFCs often allow this without penalties.
Even a 10–20% prepayment of the outstanding principal can:
- Reduce interest outflow
- Reduce EMI
- Shorten tenure
4. Opt for Bullet Repayment Option
Some lenders offer bullet repayment options for business loans, where you pay small EMIs and a larger sum at the end of tenure. This helps minimise monthly outflow during lean periods.
⚠️ Make sure your business cash flow can handle the final lump-sum payment.
5. Consolidate Multiple Business Loans
If you have more than one business loan, you can combine them into a single loan with a better rate and tenure. This makes EMI more manageable and helps you reduce the total monthly burden.
Best Working Capital Loans Loan offers are just a click away
6. Improve Your Credit Score
A good CIBIL score (700+) can help you negotiate:
- Lower interest rates
- Better loan terms
- Reduced EMI
Bravima can help you identify NBFCs that offer low-EMI loans based on your current score.
7. Switch to NBFCs Offering Flexible EMI Options
NBFCs like Bajaj Finserv and Tata Capital provide:
- Step-up EMIs (low at start, increase later)
- Interest-only EMIs for initial months
- Flexible repayment dates
Such options can reduce the initial EMI burden, especially for new businesses or startups.
Eligibility for EMI Restructuring or Refinancing
To qualify for lower EMIs through refinancing or restructuring, you typically need:
- A clean repayment record
- CIBIL score above 650
- At least 6–12 months of completed EMI history
- Proof of business income and cash flow
Bravima will help check your eligibility across NBFCs like Aditya Birla Capital, Tata Capital, and Bajaj Finserv.
Documents Required
- Existing loan statement
- KYC documents (PAN, Aadhaar)
- Business financials (ITR, GST)
- Bank statement (last 6–12 months)
FAQs on EMI Reduction
Q1. Can I reduce EMI without increasing tenure?
Yes, through refinancing or part-prepayment.
Q2. Will reducing EMI increase my total interest paid?
Yes, if done by increasing tenure. But refinancing at lower interest can reduce both EMI and total interest.
Q3. Can I apply for EMI reduction if I’m facing business loss?
Yes, some NBFCs offer EMI restructuring for genuine financial hardship. Bravima can guide you through it.
Final Thoughts: Be Smart About Business Loan EMIs
A high EMI can suffocate your working capital. Fortunately, options like refinancing, tenure adjustment, and part-prepayment can help you reduce it and grow your business without financial stress.
At Bravima Solution Pvt Ltd, we help MSMEs and entrepreneurs choose the right NBFC partner and loan structure that suits their cash flow.
👉 Need help reducing your EMI or refinancing your business loan?
Contact Bravima for a free consultation today!
Secure Your Business Funding – Apply in Minutes
Similar Blog
- Small Overdraft Loan for Business: A Smart Way to Manage Cash Flow
Running a small business often comes with unexpected expenses and cash flow challenges. Whether it’s paying suppliers, covering salaries, or… Read more: Small Overdraft Loan for Business: A Smart Way to Manage Cash Flow - How to Reduce EMI on Business Loans in India: 7 Practical WaysIf you’re running a business in India, managing your cash flow efficiently is crucial—and one way to ease financial pressure… Read more: How to Reduce EMI on Business Loans in India: 7 Practical Ways
- What Is Business Turnover? Meaning, Types & Why It MattersFor any business—large or small—turnover is one of the most fundamental metrics. But what does it really mean, and why… Read more: What Is Business Turnover? Meaning, Types & Why It Matters
- Small Business Cash Advances: A Flexible but Costly Funding OptionWhen small businesses face urgent funding needs—like addressing seasonal inventory demands or unexpected expenses—they often turn to cash advances (including… Read more: Small Business Cash Advances: A Flexible but Costly Funding Option
- Business Working Capital Loans: A Lifeline For Small Manufacturers in IndiaIn today’s competitive and dynamic industrial environment, small manufacturers often face cash flow gaps that affect operations, payroll, raw material… Read more: Business Working Capital Loans: A Lifeline For Small Manufacturers in India
- What Are the Foreclosure Charges on a Business Loan?Foreclosing a business loan—i.e., paying it off before the end of its scheduled term—can be a smart move to reduce… Read more: What Are the Foreclosure Charges on a Business Loan?
