Loan EMI Calculator is a financial tool that helps to calculate the EMI (or equated monthly installment) paid by the borrower to the bank against the loan taken from Bank or any other financial institutions for a specified period.
(Calculate the EMI against the Loan taken from Bank or any other financial institutions by using this Loan EMI Calculator)
Use the EMI Calculator below to calculate the EMI on different loans taken from banks or any financial institution. This Loan EMI Calculator requires some data like – Your Principal Amount took from bank, Rate of Interest & Period (in No. of Months). After calculation, you will get the Equated Monthly Installments (EMI).
If you are planning to educate your child for higher studies or planning to purchase a house or vehicle and if you don’t have ready cash at your disposal, bank loans help you realise your dream. These bank loans can be repaid on a monthly basis in easy installments along with a small interest. This Free EMI calculator is a finance tool that will help you calculate monthly EMI as well as EMI interest payment on loans.
Types of EMI Calculators:
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Information about EMI Calculator:
The EMI calculator is an effective tool that helps you in determining the amount of money you have to pay each month as installments for your loan. Our simple-to-use EMI calculator will tell you that amount in a matter of few seconds. This not only eliminates your visit to the bank but also helps a long way in arriving at a decision.
What is Equated Monthly Installment (EMI)?
Equated Monthly Installment – EMI for short – is the amount payable every month to the bank or any other financial institution until the loan amount is fully paid off. It consists of the interest on loan as well as part of the principal amount to be repaid.
The interest component of the EMI would be larger during the initial months and gradually reduce with each payment. The exact percentage allocated towards payment of the principal depends on the interest rate. Even though your monthly EMI payment won’t change, the proportion of principal and interest components will change with time. With each successive payment, you’ll pay more towards the principal and less in interest.
Here’s the formula to calculate EMI:
where:
E is EMI
P is Principal Loan Amount
r is the rate of interest calculated on a monthly basis. (i.e., r = Rate of Annual interest/12/100. If rate of interest is 10.5% per annum, then r = 10.5/12/100=0.00875)
n is loan term/tenure/duration in number of months
Loan EMI Calculator Variables:
This Loan Calculator for Loan uses four different variables that most of the calculator requires. These Loan EMI calculator variables are:
Principal Loan Amount: This is the amount borrowed by a borrower from the bank. If you apply for a higher loan amount, your monthly EMI will be high.
Rate of Interest: The Rate of Interest is the variable of the loan calculator that appears as a percentage and is different for different types of loans.
Loan Period: This is the period in which you can repay your loan. Longer loan tenure means lower housing loan EMI.
Equated Monthly Installments (EMI): Equated Monthly Installment or EMI is the amount payable every month to the bank or any other financial institution until the loan amount is fully paid off. It consists of the interest on loan as well as part of the principal amount to be repaid.
How to use the Loan EMI Calculator?
To use the Loan EMI calculator, by simply entering the loan amount, interest rate, and select the loan tenure.
The EMI calculator will show the EMIs based on the entered numbers instantly. It will change as per modification.
Anyone can calculate his EMI against the Loan through this online EMI calculator available on this page with high accuracy.
Following are the steps to calculate the EMI through this calculator:
- Step 1: Enter the Principal Loan Amount that he wants to borrow from the bank as a loan.
- Step 2: After this, fill the rate of interest of the loan he gets from his bank or financial institution. The rate of interest appears as a percentage and is different for different types of loans.
- Step 3: The next step that one has to follow is to select the period for a loan in months. This is the period in which you can repay your education loan. Longer loan tenure means lower loan EMI.
- Step 4: Thereafter putting all the above data, click the calculate button for calculation of EMI.
- Step 5: After submitting all variables required by an EMI calculator, one will get the Equated Monthly Installment or EMI against the Loan.
Loan EMI Calculator Formula:
Here’s the formula to calculate Education Loan EMI:
where:
E is EMI
P is Principal Loan Amount
r is the rate of interest calculated on a monthly basis. (i.e., r = Rate of Annual interest/12/100. If rate of interest is 10.5% per annum, then r = 10.5/12/100=0.00875)
n is loan term/tenure/duration in number of months
Loan Interest Rate Calculator:
Loan Interest rate Calculator online can help you calculate the interest rate you are eligible for and also, the total interest you will pay during the loan duration. Some of the factors that are used for interest rate calculation are:
- Occupation of the borrowers: Banks charge a slightly higher interest rate on Personal loans for self-employed as compared to that on loans for salaried borrowers.
- Amount of the Loan: This is the amount borrowed by a borrower from the bank.
- Type of loan opted for: The bank also offers different rates on its various loan schemes such as Existing Loan Borrowers, Existing Term Deposit Customers, Professional & Self Employed, NRIs, etc.
- Existing bank customers: Banks also offer lower interest to its existing bank account holders to maintain its relationship.
Advantages of using this Loan EMI Calculator:
There are several advantages attached to using this online Loan EMI calculator, which other such calculators may not provide.
Advantages of this EMI calculator are:
- Shows the results based on the fractional rate of interest.
- It helps you save time by showing the results immediately.
- It is more accurate compared to other EMI calculators.
- It helps you to determine the loan amount and tenor.
Using an EMI calculator is one of the first steps you take to apply for an education loan. The next steps involve arranging all the necessary documents and making sure you fulfill all the eligibility criteria.
You are here to calculate the EMI (or equated monthly installment) paid by the borrower to the bank against the loan taken from Bank. Calculate the Loan EMI by using this online Online Loan EMI Calculator.