Apply for a loan? A credit EMI calculator makes the decision easier



From-Blogger-Indifi

EMI is known as Equal Monthly Installments. It is a fixed payment that the borrower makes every month to repay the loan amount. The EMI is divided into two loan components. One is the principal amount and the second is the interest amount. Whether you are applying for a personal loan, Business loan, Home loan, car loan or education loan, EMIs can be easily calculated with the EMI loan calculator.


Three parameters the EMI calculator is based on:

  • Loan amount.
  • Repayment duration.
  • interest rate (offered by the lender).

Factors Affecting Credit EMIs

Above we discussed the main parameters that the loan EMI is based on. Here are the factors that affect the EMIs.

Loan Rate Changes: There are three loan rates – fixed, variable, and hybrid.

When an interest rate offered on a loan is fixed, there are no changes in EMIs in this scenario.

A floating rate is tied to the marginal cost of the fund-based lending rate and can change the credit EMIs. Since the interest rate is flexible, it changes constantly according to the repo rate.

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If you took out the loan at a hybrid interest rate, the interest rate is only fixed for a certain period of time. After that, it is up to MCLR to determine the interest rate, and based on the interest rate determined, the EMI changes.

Term: If you choose to transfer a loan from one lender to another, there may be a change in the term of the loan. It will also bring changes in the EMI calculations. As the tenure increases, the EMI decreases. If the term of office is shortened, EMI increases.

Example of a company’s loan graph Image source: wikimedia commons

Prepayment of credit

The repayment amount of the loan is also a reason that affects the EMI of a loan. When you make a prepayment loan, it reduces the principal amount outstanding, based on which the EMI amount or term is changed.

Benefits of Using an Online EMI Calculator:

  • Find out the exact EMIs to be paid monthly on each loan.
  • Saves time.
  • Get a detailed overview of the loans you have taken out using the repayment schedule.
  • Plan your monthly finances in advance.

You can set multiple schedules and loan periods. After a detailed timetable comparison, choose the one that best suits your financial needs.

Importance of Loan Amortization Schedule in the EMI Calculator

The loan amortization schedule data shows the EMI breaks. It shows how much EMI you have to pay for interest and what you are paying as principal. This is one of the main advantages of using the EMI calculator. The EMIs that you pay as principal further reduce the principal of the loan. It also leads to a decrease in the amount of interest. You will find out all of this if you use the EMI loan calculator frequently. The repayment schedule is one of the essential features of an EMI loan calculator that helps in creating the right prepayment schedule.

Also read: Taxing Personal Burden: An Essential Guide

The different types of EMI calculators

Home Loan EMC Calculator

Home loans are one of the most popular and widely requested loans in India. It has a long tenure and a significant amount of capital. When applying for a home loan, it is important to do all EMI calculations in advance. There are several different home loan EMI calculators available online from any home loan provider. All that is required to calculate the EMI is the loan amount, the term and the interest rate. Using a home loan EMI calculator can help you plan your finances easily.

EMI calculator for business loans

Like home loans, business loans have massive nominal amounts and longer terms. So, using the online EMI calculator for business loans is a smart way to calculate the EMIs for business loans. The essential credit details such as term, interest rate and loan amount are required. The equivalent monthly rate is automatically calculated online on the lender’s website.

EMI calculator for personal loans

Personal loans are versatile. Because of this, they are considered to be the most widely used loan to meet immediate financial needs. To choose the right loan amount, you need to use the personal loan EMI calculator. It will help you choose the best loan offer and term. Try to choose the shorter term in order to pay less interest on the principal.


Example of external loan amounts Image source: wikimedia commons

EMI calculator for education loans

The cost of education increases every year and can be a financial burden on a family. If you are planning to send your child abroad with an application for an education loan, the EMI calculator is proving to be the best online funding tool at this point. It will help you determine the right amount of EMI while leaving your daily expenses untouched.

Simple EMI calculator for interest loan

An EMI calculator is used to calculate the simple interest rate applicable to the loan amount for a given tenure. It is one of the most easily accessible financial instruments. All that is required is the term, a simple interest rate, and the amount borrowed. Then click “Calculate” to find out the exact EMI to be paid.

Loan Against Real Estate EMI Calculator

If you have registered a residential or commercial property in your name, you can apply for a loan for the property. It is a type of secured loan where the property is held as collateral. To understand how EMI works under this loan program, use the loan against the real estate EMI calculator.

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Overall, EMI loan calculators are one of the best financial tools for comparing different loan offers. It provides a clear picture of the total cost of the loan and the specific monthly EMI payable. Online EMI calculators are available on each lender’s website; Whether you are applying for a business loan, home loan, car loan, personal loan, or other loan online, using the online EMI calculator can be helpful. Keep your financial life under control with just one click of the mouse.

The online EMI loan calculator was programmed with the formula based on the loan applied for. You don’t have to worry about the accuracy of the result. All you need to specify for the calculator to do its job accurately is the correct amount, term, and interest rate offered by the lender.

Disclaimer: (This article is sponsored and contains some commercial links)


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