Financial help is taken in the form of a loan to overcome a financial crisis, an emergency or to fulfill a dream. The debt amount is repaid back in small calculated amounts monthly for a stipulated tenure. These small monthly payments are known as Equated monthly installments or EMI. Now, this EMI amount has the loan amount along with the interest added on to it.

When you apply for a loan, you discuss every detail about repayment with your bank or lender

The EMI is the total loan amount with the rate of interest divided by the number of months in your loan tenure. This calculation gives you an amount which is your EMI, payable every month. This calculation is done with the help of an EMI calculator.

What is an EMI calculator?

Like every other used calculator, the loan EMI calculatoris also used for calculating. This serves a special purpose that is the calculation of your monthly loan installments. It calculates the exact amount which you need to pay to your lender for the amount you have taken.

Where do you get it? You get it online either for free or sometimes a paid one. When you visit a website of a financial lender, you would surely come across an EMI calculator.

4 factors directly affecting your EMI

1. Loan amount:The loan amount is the most essential factor which can affect your EMI. Let’s see how. If you take a low principal amount automatically your EMI will be less. For a huge loan amount, the EMI that you need to pay will also be a big amount. Choose your loan amount wisely as it can directly affect your EMI.
2. Tenure:Loan tenure is the duration for which you take the loan. This is also an important factor that affects your EMI. Suppose you take a long tenure, eventually, your loan amount is divided by the number of months and it ends up being a less amount to be paid. However, if you go for a short tenure you need to pay the whole amount quickly by paying huge installments monthly. So, calculate your EMI wisely by taking the right decision regarding tenure.
3. Rate of interest:Understand, more the interest rate more will be your monthly installment. So shop around and calculate your EMI wisely.

Wrapping up

Consider using an EMI calculator before you take an informed decision. A little research and calculation can get you an EMI which does not stress a happy life. A personal loan EMI calculator is the right tool for taking the right decision.

Posted by: Loan EMI Calculator at 02:14 PM | No Comments | Add Comment
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