Today, it is no
surprise to find that every earning individual owes a loan or credit. It was a
taboo earlier to get the loan, but today, it has become a necessity or say, a
tool to have better financial management. Going with the trend, the financial
sector has witnessed a marvellous boom in the growth and development of the
segment.
However, the
loan comes with certain financial responsibility as well such as making regular
EMI payments. And, the responsibility can be only fulfilled when you manage the
finances well. Hence, before borrowing a loan or credit, it is significant to
deeply analyze regular income and surplus money after deducting all the regular
expenses. Then, evaluate the needs to determine the loan amount and then use simple interest EMI calculator to
figure out the cost of monthly EMIs.
An EMI
calculator helps you to determine the amount of the monthly instalments that
you will need to pay towards the borrowed loan and thus, helps in making an
informed decision.
What is EMI calculator?
Equated Monthly
Instalment or simply EMI is a regular repayment schedule that includes
principal amount of the loan along with payable interest. Thus, a loan EMI
calculator gives an approximate figure for the total monthly instalment
payable.
Also, the EMI calculator
gives a fair understanding of the principal amount-interest ratio based on the
tenure and applicable interest rates. Hence, it can be said that the calculator
provides a complete break-up of the instalment payments.
How a Simple Interest EMI calculator works?
EMI calculators
definitely come as a handy and convenient tool to make an informed decision,
but the question here is how the calculator works and computes the results in
seconds?
Basically, to
determine the amount of EMIs, calculators require certain variable inputs to
determine loan EMIs.
Loan amount
Loan amount is
the principal amount or say the actual borrowed amount after deducting
processing fees and other charges. The loan amount is approved based on number
of factors such as monthly income, Credit score, and eligibility criteria. So,
to calculate the monthly instalments, enter the loan amount that you need.
Interest rates
Once the
principal amount is entered, the interest rate is applied. The interest rate is
the rate at which the bank or lender charges interest towards the loan.
Although, the rate of interest varies from lender to lender and also from loan
to loan. Depending on the type of loan, the rate varies. Hence, before giving
inputs of the interest rate, zero down on the lender and the type of loan to
check their ROI for that particular loan.
Loan tenure
Loan tenure refers to the period in which the
borrowed sum needs to be paid in full along with computed interest. Loan tenure
can range from minimum 3 months to up to 30 years, depending on the type of
loan along with other key factors. Calculate your EMI now at https://www.applykaroo.com/emi-calculator
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