Equated Monthly Instalment (EMI) is the amount that you pay every month to your lender until your loan is fully settled. This includes part of the principal and the loan interest amount. It is divided by the tenure of a loan, i.e., the number of months in which it will be repaid in full. The interest component of the EMI is larger during the initial months and gradually reduces with each payment, at which point the principal to pay diminishes at a faster pace.
How it is calculated?
The formula to calculate EMI:
E – EMI,
P - Principal Loan Amount
r - the rate of interest calculated on a monthly basis
n - Loan term / tenure / duration in number of months.
Calculating the EMI online for different combinations of principal loan amounts, interest rates and loan terms is easy using the formula given above.
(i.e. r = Rate of Annual Interest/12/100. If the rate of interest is 10.5% per annum, then r = 10.5/12/100=0.00875)
How to use it?
Our EMI loan calculator is extremely easy to use. You can use it to know or check the EMI for home loan, personal loan, car loan, or education loan or any other loan in Bangalore,India.
Enter the following information in calculator:
Principal loan amount you wish to avail (in rupees)
Loan term (months or years)
Rate of interest (percentage)
Please call us for a demo on EMI Calculations. We will be more than happy to assist you in this regard.