What is Equated Monthly Installment (EMI)? The payment to be billed per month to the creditor and any other financial institution until the loan amount is fully paid off is the Equated Monthly Installment-EMI for short. The interest on a loan and half of the principal amount to be returned shall be included. The amount of principal and the interest is divided by the term, i.e. the number of months for the repayment of the loan. It must be paid every month. Check EMI calculator benefits below.
Check out this formula to calculate EMI:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where E refers to EMI; Prefers to Principal Loan Amount; R refers to the rate of interest per month
EMI Calculator Benefits:
As the EMI is the fixed amount to pay back to the bank for your loan, estimating the EMI allows you to prepare the monthly budget for your loan.
Types of EMI Calculators:
Based on the loans you plan to take, there are different types of EMI calculators. Check out below EMI Calculator types in brief.
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Home Loan:
Home loans are one of the most commonly approved bank loans every year. Typically, they have long tenure and a large principal. So, these calculations are necessary well before taking a home loan. It’s important. There is plenty of simple home loan EMI calculators that lets you find out how much EMI you need to spend to get your money right before your visit to the bank.
Car Loan:
If you do not do calculative steps your car’s comforts will lead to greater expenditure in your budget. Make sure you run your numbers via the best EMI Car Loan Calculator before you purchase your dream car. There are many packages available in the market that can be very enticing to buy cars. Nonetheless, it is important to remember that your car may be repossessed by the banks if you are unable to pay the full amount of your car loan.
Personal Loan:
Personal loans had become fairly common, whether you intend to go for a vacation, renovate your house or otherwise. Personal loans from various banks have become easy to take. Several EMI calculators can help you estimate how much EMI you pay for the banks.
Education Loan:
Calculate the Education loan EMI and your loan repayment plan with monthly payments within one minute with an Education loan EMI Calculator. EMI Calculator is an easy and quick method to help you make the right decisions.
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Loan against Property:
You can use this as collateral to obtain a loan against property (LAP) if you have any residential or commercial property or property recorded under your name. These are safe loans that you can use as collateral for mortgage properties. To learn how EMI works, you can use various Loans against Property Calculator.
How to Calculate Home Loan, Car Loan, and Personal Loan?
They are usually the same, as all three loans have the same basic information as the amount borrowed, prepayments, tenure, interest rates and fees for processing, however, there might be a restriction on the loan amount based on the type of loan with a few calculators.
