Calculating your EMI amount has never been this easy! Just enter your Loan amount, Rate of Interest and the Loan duration in the below EMI calculator & you will get your monthly EMI amount!
What is EMI?
The full form of EMI is Equated Monthly Installment. As it is clear from the name itself, EMI is the equal monthly installments that need to be paid for a certain period to clear the loan amount.
Use of EMI Calculator
The above EMI calculator will help you to plan your loan amount accordingly. The interest rate for a home loan ranges from 8%-10% per annum. Whereas; the interest rate for a car loan varies from 9%-11%. On the other hand, the interest rate for a personal loan varies from 11%-15% per annum. Thus, the monthly EMI amount varies for the type of loan you are taking.
The lower the interest rate, the lower will be the EMI amount. Generally, for the same amount and same time-period, home loans have the least EMI amount. On the other hand, personal loans have the highest EMI amount for the same loan amount and time period.
Factors Affecting Interest rates on Loans
There are various factors which affect the interest rate on your loan amount. One of which is the type of loan, i.e. Home Loan/Personal Loan or a Car loan, which we have already discussed.
Type of Loan: Generally, for the same amount and same time-period, home loans have the least EMI amount. On the other hand, personal loans have the highest EMI amount for the same loan amount and time period.
Credit Score: Another major factor is your credit score. Credit score is calculated based on your credit card, loan and payment history.The higher the credit score, the lower will be the interest rate.
Time-Period: The interest rate is lower for the loans which have short tenure. For long tenure loans, the interest rate is higher.
The EMI calculator will help in planning your loan amount and loan tenure based on your current income. Thus, based on your income, you can decide how much loan amount you can afford and for how long you can afford. It will help you to manage your monthly expenses accordingly and plan your financial goals.