EMIs – The equated monthly installments are a vital part of your personal loan. It is a fixed amount that a borrower must repay to the lender at monthly intervals. It includes both, the principal loan amount and the applicable interest rate. The EMI is a carefully calculated figure, up on which both the parties involved agree. Repayment of a loan by means of EMIs is a continuous process until the complete amount is fully paid along with the interest.
Why is EMI calculation important?
Over the last few years, several online lending platforms have opened up, wherein you can Online Loan Apply by means of internet. Sitting at your home you can get both a personal loan and a business loan approved, and money will be directly deposited into your bank account. However, before you choose to apply with any online or even offline lending institution, it is recommended to carry out proper due diligence to estimate the monthly EMIs.
The EMI Calculator:
Given that a majority of loans involve a huge sum of money, therefore it is important for the borrowers to understand every part of the loan, the principal amount, the interest rate applied, over what tenure and complete payment structure in numbers.
To understand the calculation in advance a Personal Loan EMI Calculator is a very helpful tool. It will help you identify the total cost of the plan of any fully amortizing loan.
How does a Personal Loan Emi Calculator works?
Mathematically, the formula used to calculate EMIs is:
(i) P = Loan amount or the principal
(ii) I = Interest rate
(iii) T = Loan tenure
You only have to feed above mentioned variables into the calculator,
and it does the rest. It gives you a clear picture of your monthly EMIs when you enter these details. It is a simple, fast and reliable source to calculate your EMI’s. Also, you can use this tool
free of cost on the website of all major banks, financial companies.
Note – Never miss on your EMIs and do not delay your payments.
It is very essential to pay all your EMIs on time. Delaying and missing on payments can result in extra penalties. It will also have a negative effect on your credit score.
Hopefully by these tips and EMI calculator are resourceful to help you manage your EMI. Be a smart borrower and choose your Instant Loan terms wisely as per your needs.