Benefits of Calculating Loan EMI
Here are some of the benefits of using a Home Loan calculator:
Enter a specific loan amount and your loan tenure and there will be changes in the Interest rate and processing fee as per the fixed rates maintained by the bank. You will get a great idea of your loan amount, and from that you can choose your personal loan.
It takes less than a minute to calculate in a single touch when you use the calculator. Also, EMI calculators are extremely easy to use and 100% accurate.
|Choose your preferred tenure||
Loans are vary in tenure and you can compare EMIs to see which one is more suitable for your financial health. If you are fine with paying higher interest and want to close your loan early, the tenure will be shorter. Otherwise, you can always opt for a longer tenure.
|Your repayment schedule||Our personal loan calculator also provides you a complete breakdown of your repayment schedule. This way you will have an idea that how much you will have to contribute and how much the principal balance will be.|
Factors that Affect Your Home Loan EMI
Your Home Loan EMI mainly depends on 3 important factors:
- Interest Rate
- Loan Amount
- Loan Term
Interest rate: Even in this case, the interest rate is directly proportional to equal monthly payments. The higher the interest, the higher your EMI. The bank will charge the interest rate on your loan based on several factors, such as your income, credit history, ability to repay, etc.
Loan Amount: as much as higher the loan amount, higher will be the EMI payable. The maximum loan amount that you can avail is only depends on the lenders which will be based on your capacity of repayment, relationship with the bank and some other factors.
Loan term: The loan term you have chosen is inversely proportional to the equal monthly installments. The longer the term, the lower the monthly premium rate (EMI). However, in the long run, you may end up paying more as interest. Loan term options typically range from 12 months to 84 months.
Charges on Non/Late Payment of EMI
Penalty on late payment of EMIs (defaults): When a person opts for a loan, he needs to repay the loan amount in the form of EMIs or equated monthly installments. It is the borrower's responsibility to ensure that EMIs are paid on time to time. Default in payment of EMIs will attract penalty.
That is why it is necessary to calculate the amount of your EMI in advance and decide the finances according to your tenure.
Penalties - for individuals who miss their EMI payments the banks and financial institutions may charge late fees as a penalty . The amount charged may vary but it is usually around 1%-2% of the EMI payable.
How to calculate your interest rates & EMIs on your loan
There are 2 ways to calculate your interest rates & EMIs:-
- EMI calculator- You can check your interest rate with the help of EMI calculator, which is provided by banks on every site you wish to visit. With the help of this calculator you will be applicable to calculate your whole interest rate of your loan amount with EMI. You just only need to fill some of your information regarding the loan, like:-
Loan amount, Loan tenure & Interest rates
After filling these details you have to click on calculate button to get all details regarding to your loan. This calculator will not only tell your interest rates even it calculates your monthly repayment schedules also.
- EMI calculation formula- Alternatively, you can also use the formula below to calculate your EMI liability for your loan-
EMI = [P x r x (1+r)^n]/[(1+r)^n-1]
With the help of this formula you may able to calculate you interest on you principal amount.