Equated monthly instalments, also known as EMI is defined as the the amount that a loan borrower needs to pay. This amount needs to be paid throughout the loan tenure in order to repay the borrowed loan amount. Each EMI amount includes part of the due amount, which is the principal and the interest borrowed through the loan.
This loan EMI is the monthly repayment that a borrower, will need to repay back, in accordance to the amortization schedule. But in order to calculate the ideal amount, a tool can be used to determine the EMI’s payout. This tool is the Personal Loan EMI Calculator
There is a general mathematical formula that is commonly used by most financial institution to calculate your personal loan EMI. For a fixed personal loan amount, the tenure and interest rate will be calculated into the EMI. The amortisation schedule offered that comes with this loan will be similar, to the pattern of reduction of a principal loan value through payment of each EMI. The personal loan EMI calculator eases the tedious task of calculating a person’s EMI. At the same time, this tool also displays the best personal loan offers as per one’s eligibility and requirements.
Personal loan EMI calculator calculates the EMI for personal loans on the basis of the inputs that are provided. This EMI calculator requires the following inputs related to one’s loan:
• Loan Amount: The amount borrowed is define as the principal amount of the loan. The rate of interest is then calculated on the borrowed amount. It is then divided into the required EMIs according to the tenure of the loan and it should not be more than 40% of one’s monthly income.
• Interest Rate: It is the rate of interest charged on the principal amount. The interest rate can be either classified as fixed or floating in type. In case of fixed interest rate loans, the rate stays the same throughout the loan tenure. However, with the floating interest rate, the rates may vary from in accordance with the base rate. This, in turn, will cause the EMI value to vary.
• Loan tenure: It is the period chosen for the repayment of the loan. The loan tenure ranges between a few months to 5 years for most banks and financial institutions.
This personal loan EMI calculator works on two fixed arithmetic formulae. It includes two calculators, interest rate calculator and EMI calculator.
The first calculation is simple as it is uses the calculator to calculate the monthly interest on borrowed loan amount. The second calculation uses a complex formula which is used to calculate the personal loan EMI. Hence the use of personal loan EMI calculator helps in providing an idea regarding the best personal loan schemes available in the market.
This loan EMI is the monthly repayment that a borrower, will need to repay back, in accordance to the amortization schedule. But in order to calculate the ideal amount, a tool can be used to determine the EMI’s payout. This tool is the Personal Loan EMI Calculator
There is a general mathematical formula that is commonly used by most financial institution to calculate your personal loan EMI. For a fixed personal loan amount, the tenure and interest rate will be calculated into the EMI. The amortisation schedule offered that comes with this loan will be similar, to the pattern of reduction of a principal loan value through payment of each EMI. The personal loan EMI calculator eases the tedious task of calculating a person’s EMI. At the same time, this tool also displays the best personal loan offers as per one’s eligibility and requirements.
Personal loan EMI calculator calculates the EMI for personal loans on the basis of the inputs that are provided. This EMI calculator requires the following inputs related to one’s loan:
• Loan Amount: The amount borrowed is define as the principal amount of the loan. The rate of interest is then calculated on the borrowed amount. It is then divided into the required EMIs according to the tenure of the loan and it should not be more than 40% of one’s monthly income.
• Interest Rate: It is the rate of interest charged on the principal amount. The interest rate can be either classified as fixed or floating in type. In case of fixed interest rate loans, the rate stays the same throughout the loan tenure. However, with the floating interest rate, the rates may vary from in accordance with the base rate. This, in turn, will cause the EMI value to vary.
• Loan tenure: It is the period chosen for the repayment of the loan. The loan tenure ranges between a few months to 5 years for most banks and financial institutions.
This personal loan EMI calculator works on two fixed arithmetic formulae. It includes two calculators, interest rate calculator and EMI calculator.
The first calculation is simple as it is uses the calculator to calculate the monthly interest on borrowed loan amount. The second calculation uses a complex formula which is used to calculate the personal loan EMI. Hence the use of personal loan EMI calculator helps in providing an idea regarding the best personal loan schemes available in the market.
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