Loans can be a godsend for us when we are in dire need of money. It allows us to make emergency payments or necessary payments in general. However, the process of repaying the loan and its EMI's can sometimes be a little complex and confusing at the same time. Read on to understand how EMI's work and what you can do to make the process easier.
What is an EMI?
Equated Monthly Instalment (EMI) is the money amount that a loan taker is required to pay to the bank throughout the duration tenure, for repaying the entire loan amount. You will have to pay a part of the amount along with the interest.
What is a Personal Loan EMI Calculator?
To calculate a personal loan EMI, every financial institution uses a generic mathematical formula. A personal loan EMI calculator calculates the personal loan EMIs based on the information and inputs provided by you.
How to use Personal Loan EMI Calculator
You would need to provide the following information to use the personal loan EMI calculator-
• Loan tenure- Loan tenure is the duration of time selected by the loan bearer for repaying the entire loan amount. Every bank offers flexible loan tenure to make it easier for you. Hence, you have the freedom to choose the repayment duration that is best suited to his needs. Generally, the loan tenure ranges from 1 year to 5 years.
• Interest rate- Interest rates are classified into two parts: floating and fixed. The floating interest rates fluctuate often depending on the base rate and that can cause the EMIs to vary. If the rates are fixed, the rate stays the same all through the loan tenure and causes each EMI to remain equal.
• Loan amount- The sum of money you borrow from the bank is known as the loan amount. An interest rate is applied on your loan and is segregated into EMIs, which you will have to pay monthly throughout your tenure. In order to determine the amount you will need to pay, simply enter your loan amount into an EMI calculator and get the desired results. Keep in mind that your EMI amount should not exceed 40% of the total monthly income.
In order to calculate EMI for your personal loan, you will have to know your interest rate, your loan tenure and your personal loan amount. Operating a personal loan calculator and calculating your EMI is much easier and more convenient method to find out how much you would need to pay.
What is an EMI?
Equated Monthly Instalment (EMI) is the money amount that a loan taker is required to pay to the bank throughout the duration tenure, for repaying the entire loan amount. You will have to pay a part of the amount along with the interest.
What is a Personal Loan EMI Calculator?
To calculate a personal loan EMI, every financial institution uses a generic mathematical formula. A personal loan EMI calculator calculates the personal loan EMIs based on the information and inputs provided by you.
How to use Personal Loan EMI Calculator
You would need to provide the following information to use the personal loan EMI calculator-
• Loan tenure- Loan tenure is the duration of time selected by the loan bearer for repaying the entire loan amount. Every bank offers flexible loan tenure to make it easier for you. Hence, you have the freedom to choose the repayment duration that is best suited to his needs. Generally, the loan tenure ranges from 1 year to 5 years.
• Interest rate- Interest rates are classified into two parts: floating and fixed. The floating interest rates fluctuate often depending on the base rate and that can cause the EMIs to vary. If the rates are fixed, the rate stays the same all through the loan tenure and causes each EMI to remain equal.
• Loan amount- The sum of money you borrow from the bank is known as the loan amount. An interest rate is applied on your loan and is segregated into EMIs, which you will have to pay monthly throughout your tenure. In order to determine the amount you will need to pay, simply enter your loan amount into an EMI calculator and get the desired results. Keep in mind that your EMI amount should not exceed 40% of the total monthly income.
In order to calculate EMI for your personal loan, you will have to know your interest rate, your loan tenure and your personal loan amount. Operating a personal loan calculator and calculating your EMI is much easier and more convenient method to find out how much you would need to pay.
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