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What is EMI ?
An EMI calculator is a tool that helps you calculate the monthly installments (EMIs) you need to pay on a loan. It is a useful tool for loan borrowers as it helps them plan their budget and make informed financial decisions.
EMI stands for Equated Monthly Installment. It is a fixed payment amount that a borrower is required to pay to a lender every month, until the loan is fully repaid. The EMI consists of the principal amount (the loan amount) and the interest due on the loan.
In most loan agreements, the borrower is required to pay the EMI on a fixed date every month. The EMI remains the same throughout the loan tenure, unless the borrower and lender agree to change it.
EMIs are commonly used to repay loans for purchasing big-ticket items like a house or a car, or for financing education or business expenses
How to Use Rapidloans EMI Calculator?
Here are the steps to use our loan EMI calculator on our website:
- Go to the EMI calculator page on our website.
- Enter the loan amount you want to borrow in the designated field.
- Enter the loan tenure in months. This is the duration for which you want to take the loan.
- Enter the interest rate applicable on the loan. The interest rate is the cost of borrowing money, which is usually expressed as a percentage of the loan amount.
- Click on the “Calculate” button.
- The EMI calculator will display the monthly installments (EMIs) that you need to pay, as well as the total interest and the total amount (principal + interest) that you will pay over the loan tenure.
- If you are satisfied with the calculated EMIs, you can proceed to apply for the loan on our website.
Using an EMI calculator is a simple and convenient way to plan your loan repayment and budget accordingly. It helps you understand the financial implications of taking a loan and makes it easier to compare different loan options. We hope this helps you make an informed decision about your loan.
How is EMI Calculated ?
The EMI (Equated Monthly Installment) for a loan is calculated using the following EMI formula:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
- P is the principal loan amount (the amount borrowed)
- R is the interest rate per month (annual interest rate/12)
- N is the loan tenure in months
For example, let’s say you want to take a loan of INR 100,000 for a period of 36 months at an annual interest rate of 12%.
Your EMI would be calculated by emi calculation formula as follows:
EMI = [100,000 x (12/100) x (1+12/100)^36]/[(1+12/100)^36-1] = [100,000 x 0.01 x (1.01)^36]/[(1.01)^36-1] = [100,000 x 0.01 x 3.0493]/[3.0493-1] = INR 3,456.79
Therefore, you would need to pay an EMI of INR 3,456.79 every month for 36 months to fully repay the loan.
Note: This is just an example calculation and does not represent the actual terms and conditions of any specific loan. Interest rates and loan terms may vary based on the lender and the borrower’s creditworthiness and other factors.
What is an EMI calculator?
An EMI calculator is a tool that helps you determine the monthly payments (called EMIs, or Equated Monthly Installments) on a loan. You can enter the loan amount, interest rate, and loan term into our emi calculator online, and it will give you the EMI amount as well as a breakdown of the interest and principal payments for each month of the loan.
Can I use an EMI calculator for any type of loan?
Yes, an EMI calculator can be used for any type of loan, including personal loans, home loans, car loans, and more. Simply input the relevant details for your specific loan, and the calculator will give you the EMIs.
Is an EMI calculator accurate?
An EMI calculator is generally accurate, but it is important to note that the calculations are only estimates. The actual EMIs on your loan may vary slightly due to factors such as lender fees and rounding. It is always a good idea to consult with your lender to get a more accurate payment amount.
Do I have to pay any fees to use an EMI calculator?
No, most EMI calculators, including ours, are completely free to use. You can use them as many times as you like without any charges.
Is an EMI calculator mandatory to use before taking a loan?
An EMI calculator is not mandatory to use before taking a loan, but it can be a very helpful tool in managing your finances and determining how much you can afford to borrow. By knowing your EMIs in advance, you can better plan and budget for your loan payments. It is always a good idea to consider your financial situation before taking on any type of debt.