Equated monthly instalment is the amount payable to the bank or financial institutes with whom you have a Loan. Generally, the repayment is pre-discussed in the agreement when you apply for it. Read all the repayment terms, confirm the interest, and use tools to manage finances.
The Loan calculator provides a clear idea of the repayment amount towards your borrowing as EMIs. It lets you plan your monthly budget and expenses considering the outflow towards the borrowed amount. You can also estimate the amount and tenure suitable. Hence, knowing the EMI is essential for budget and eligibility calculation.
Usage
An EMI calculator calculates the monthly amount towards your Loan. You find it on all bank websites. It is easy to use and allows you to change the variables endlessly till you arrive at an affordable amount. It evaluates the total and due interest for an ongoing Loan. Enter the amount, select the preferred tenure, and interest rates. EMI is the entire principal amount and interest divided by the repayment tenure in months. Remember to pay the instalment monthly.
Formula
The interest component is larger during the initial period and gradually reduces with the passing months. The formula is:
EMI = [P x R x (1+R) ^N]/ [(1+R) ^N-1], where,
P is the Principal Amount
R is the interest rate
N is the tenure in months
How does it help?
The Personal Loan eligibility calculator clarifies the amount you are eligible to borrow. Several factors like your income, credit history, repayment capacity, existing liabilities, etc., decide your eligibility. Enter details like your resident city, date of birth, total monthly income, interest rates, and preferred term to know the eligible amount.
Once added the details, enter your phone number to receive an OTP to ensure that your privacy is maintained and only you get the information. After all the formalities, ‘Enter’ to get a detailed report of your Loan eligibility. Use Personal Loans to meet your financial needs like medical treatment, children’s education, or car buying. A Loan calculator lets you plan your future repayment, preventing you from being stuck with unaffordable borrowing.
Conclusion
Numerous banks provide this service. Find the right match that syncs with your financial requirements. Check and compare the schemes to find a suitable offer. Research and financial planning are the secrets to hassle-free borrowings.