The credit market in India is experiencing growth. It is currently the fourth-largest credit industry worldwide, recording a CAGR of over 11% year on year. Most of these advances are short-term credits such as Personal Loans and Credit Cards. Combined, they account for 78% of all credit lending in India. Loan repayments include EMIs. Borrowers should consider the EMI amount to plan their current and future finances accurately.
Several online platforms offer EMI calculators. You must ensure yours is accurate and learn its usage to calculate the exact equated monthly instalment amount you are liable to pay for a Loan. Based on your financial and repayment capacity, you will be required to calculate the EMI. Certain factors need to be considered while planning and applying for Loans:
- Loan term
A Loan’s tenure may be reduced or extended. There will also be a rise or fall in the EMI amount. Thus, considering the Loan term is also an important factor that may affect your due amount.
- Interest rate
The interest rate helps assess the instalment amount you owe. You can compare the products and opt for one with lower interest rates, ensuring your overall repayment remains low.
- Loan amount
Choosing the Loan amount is another factor for determining your EMI. Based on the Loan amount chosen, your EMI will be calculated accordingly.
Types of EMI calculators
There are numerous EMI calculators you can use to calculate your equated monthly instalments. Given below is a brief:
- Home Loan EMI calculator
Home Loans usually have a huge principal amount and a long tenure. It requires strategic planning for repayment. You can use the Home Loan calculator to calculate your EMI. It is a user-friendly calculator that helps you calculate and assess your Home Loan EMIs instantly. Enter your Loan amount, Loan tenure, and interest rate, and the results are calculated immediately.
- Car Loan EMI calculator
A car is one of the major investments. You may require a Car Loan to fund it. Often, a Car Loan’s EMI is supposed to be repaid with due interest within a stipulated time to the bank. In the event of failure, they may repossess and sell your car at auction to recover the outstanding balance. Thus, to calculate a precise and affordable EMI amount, you can use the Car Loan EMI calculator.
- Personal Loan EMI calculator
Personal Loans are mostly taken to serve several purposes, such as medical emergencies, vacations, relocation, weddings, and home renovations. Since they are unsecured, they have a relatively higher interest rate and a shorter tenure. Use the Personal Loan EMI calculator to assess the Loan and EMI amount you can pay easily.
Conclusion
You may also find other Loan calculators online, including those for Education Loans and Loans Against Property. These are free to use, 100% accurate, provide instant results, and can be used as many times as you like.
