We have all come across the words "EMI" and
"EMI calculator" in our lives more than once. Whether you are taking
a loan to buy a car for your loved ones, or you are going to pay back your loan
in EMI if you want to give someone a home appliance. It is among the lending
industry's most used jargons.
EMI means Equated Monthly Installment. This is the amount you
pay to bank or lending institution every month you clear off the entire loan
amount. EMI consists of a portion of the interest to be repaid and the balance.
EMI is the percentage of the principal balance and interest owed, divided in
months by the entire loan term.
The exact percentage of principal payments allocated depends
on the interest rate. The proportion of principal and interest for each EMI will
change over time. You would pay more of principal and less interest with each
EMI.
EMI calculator uses the following formula to calculate EMI-
E = P.R.(1+R)^N/((1+R)^N-1)
Where,
E represents EMI
P represents for Principal Loan Amount in Rupees
R represents the rate of interest calculated every month. (R
= Rate of interest annually/12/100. For, e.g. If the rate of interest is 9.5
per cent per annum, then R = 9.5/12/100=0.065972)
N stands for loan term/tenure/duration in number of months.
On EMI you can finance virtually every loan on Earth. Here
is just a simple reference list-
Home Loan
Loan against Property
Business Loan
Vehicle Loan
Education Loan
Gold Loan
Loan against Bank FD
Loan against Mutual Funds.
Mortgage
loan calculator is a digital instrument, so you do not need to use analogy
tools or handheld calculators to measure the EMIs. Besides, the modern EMI
calculator, unlike traditional handheld calculators, provides holistic
information such as the principal and interest component of each EMI, payment
date etc.
Also, you can use any spreadsheet program such as MS-Excel
to build your own EMI calculator. Additionally, there are many online websites
on their website, such as all bank websites, NBFCs, etc., which provides mortgage
calculator.
Information needed for the calculator
The following factors are essential for calculating through
EMI calculators-
Loan amount
Tenure
Interest rate
Does the online mortgage calculator consider the rates of
all the banks?
Depending on the type of loan, various banks give different
interest rates on loans, such as car loans, property loans, educational loans,
marriage loans, etc. The online
mortgage loan calculator performs all the research work from all the banks
and measures the loan from the bank, and the EMI sum and the client can choose
the best scheme.
