EMI Calculator
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The credit market in India is experiencing steady growth, now ranking as the 4th largest credit industry globally, with a compound annual growth rate (CAGR) exceeding 11% year on year. A significant portion of these loans consists of short-term credit products like personal loans and credit cards, which together account for 78% of total credit lending in India. Loan repayments are typically made through equated monthly installments (EMIs), and it is important for borrowers to consider their EMI amount to effectively plan their current and future financial obligations.
To help borrowers assess their repayment amounts, numerous EMI calculators are available online. Choosing the right calculator and understanding how to use it can provide an accurate figure for the EMI amount you are responsible for paying on a loan.
Factors Affecting Your Loan Repayment Amount
When applying for a loan, several factors will influence the EMI calculation. Here are key factors to consider:
Loan Tenure: The length of your loan tenure directly impacts your EMI. A shorter loan tenure typically means higher EMIs, while a longer tenure results in lower EMIs. Therefore, choosing the right loan term is essential in determining your repayment amount.
Interest Rate: The interest rate plays a crucial role in calculating the EMI. A lower interest rate can reduce your overall repayment amount, so it’s worth comparing different loan products to choose the one with the best rate.
Loan Amount: The amount you borrow also affects the EMI. The larger the loan, the higher the EMI, so it’s important to evaluate your financial capacity when selecting a loan amount.
How an Online EMI Calculator Can Help You
The number of credit accounts in India is increasing rapidly, with a CAGR of 28%, reaching 107 million accounts by the end of FY18. Regardless of whether you’re taking out a secured or unsecured loan, knowing your monthly EMI before taking on debt is essential. An online EMI calculator is a valuable tool in this process.
Here’s how it can assist you:
Accurate Estimates: The calculator provides precise EMI figures, allowing you to plan your finances effectively and avoid surprises.
Time-Saving: It simplifies the process, eliminating the need for complex manual calculations and saving you time.
Error-Free: The calculator ensures there are no miscalculations, offering a consistent and reliable estimate each time.
Loan-Specific: The EMI breakdown varies by loan type. For example, the EMI for a home loan differs from that of a personal loan, and the calculator accounts for these differences.