EMI stands for equated monthly instalment. It relates to payments made regularly to repay an outstanding loan within a certain time frame. EMI plan benefits both the borrower and the lender, and that is why it is also the most preferred plan of loan payment as compared to any other payment plan. It is essential to ensure that you make all your payments on time. If you make an overdue fee, you’ll be charged more and your credit rating will go down. Converting Credit Card purchases into EMIs offers the flexibility of foreclosure or cancellation.
Calculate EMI on Home, Car and Personal Loans
Pros of Equated monthly instalment:
- It is an easy-to-use calculator and acts as a financial planning tool for a home buyer.
- Interest rate is decided by the banks & HFCs based on rates and policies set by RBI.
- Calculations will help you decide how much EMI is affordable, how long your loan tenure should be and how much you should borrow.
- Regular EMI payments can instil financial discipline.
Cons of Equated monthly instalment:
- The borrowers have to pay the monthly EMIs until they are done with the principal amount and the applicable interest rate.
- EMI schemes may conceal any hidden charge or penalties in terms and conditions therefore individuals should carefully scrutinise the fine print and inquire about any hidden charges before agreeing to an EMI plan.
- If a borrower misses to pay the said EMI at a given time or date, banks and NBFCs charge the borrower with late fees.
Formula: To calculate EMI (Equated Monthly Instalment) Enter the principal, tenure, and rate of interest to calculate the EMIs payable, and total interest payable and get a detailed amortisation schedule.
= P x r x (1 + r)^n / ((1 + r)^n – 1).
Where P is the principal loan amount.
R is the monthly interest rate.
N is the loan tenure in months.
Read Also:
- 5 Common Mistakes To Avoid While Applying for Personal Loans
- What Is a Conventional Loan? How do they work. Step By Step you Know
- What Is FHA Loan? How do they work. Step By Step You Know
- Personal Loan Interest Rates in Comparison to Banks
Here are the Top 10 Best Companies Calculate EMI on Home, Car and Personal Loans
| COMPANY NAME | KEY FEATURES | HIDDEN CHANGES | RATING | INTEREST RATE |
|---|---|---|---|---|
| Bankbazaar EMI Calculator | It provides a flexible option to get a more accurate picture of your loan payment. | No, hidden charge in EMI Calculator. | 4.4 Star. (138k review) | Loan rates might start as low as 6.5% and go up to around 9% or more. |
| Bajaj Finserv EMI Calculator | It compares EMIs for different loan amounts, interest rates, and tenures to choose the best option. | No, hidden charge in EMI Calculator. | 4.8 star. (1M review) | The interest rates as low as around 12-14% per annum for personal loans, but they can go higher. |
| Paisabazaar EMI Calculator | It offers adjustment of loan and has the ability to view results instantly and also help in decision making before applying. | No, hidden charge in EMI Calculator. | 4.4 star. (1M review) | Interest rates typically range from around 10% to 25%. |
| Credit Mantri EMI Calculator | For different loan types it provides separate EMI calculators. Also you can watch the breakup of principal and interest. | No, hidden charge in EMI Calculator. | 3.8 stars. (43k review) | Not set interest rates. |
| SBI Bank EMI Calculator | One should calculate the EMI amount beforehand and plan their loan options accordingly. | No, hidden charge in EMI Calculator. | 4.1 star. (30k review) | Range from around 9.60% to 16.60% per annum. |
| ICICI Bank personal EMI Calculator | The free tool will let you calculate EMIs according to different loan amounts and tenures better. | No, hidden charge in EMI Calculator. | 4.5 star. (68k review) | Typically range from around 10.50% to 20% per annum. |
| Axis Bank EMI Calculator | This calculator helps estimate monthly payments for loans secured by your property. | No, hidden charge in EMI Calculator. | 4.8 star. (2M review) | Typically range from around 10.25% to 24% per annum. |
| HDFC Bank EMI Calculator | With a low-interest rate and long repayment tenure, HDFC Bank ensures a comfortable home loan EMI. | No, hidden charge in EMI Calculator. | 3.9 star. (1M review) | Interest rates ranging from around 10.5% to 21% per annum. |
| Mobikwik EMI Calculator | EMI Calculator is easy to use, intuitive to understand and is quick to perform. | No, hidden charge in EMI Calculator. | 4.5 star. (2M review) | Interest rates can range from around 10% to 30% per annum. |
| Groww EMI Calculator | It gives you an accurate estimate, which is pivotal for financial planning. | No, hidden charge in EMI Calculator. | 4.4 star. (1M review) | Interest rates can range from around 10% to 24% or more. |
Note: Interest rate depends on loan amount and tenure.
Here are the top 10 Best Companies to Calculate EMI on Home, Car and Personal Loans in detail
- Bankbazaar EMI Calculator: BankBazaar offers a user-friendly EMI calculator. This calculator is used to calculate home loans, car loans and personal loans EMIs.
- Bajaj Finserv EMI Calculator: It provides different calculators depending on the type of your loan. To calculate the monthly EMI you need to input the loan amount, interest rate, and tenure in the designated fields.
- Paisabazaar EMI Calculator: Paisabazaar EMI calculator is designed to be simple and straightforward. This helps estimate the interest value without any additional process. It also helps in making informed decisions before applying for a loan.
- Credit Mantri EMI Calculator: You can watch the breakup of principal and interest means these features help you understand how much your EMI goes into repaying the loan amount and how much goes towards interest.
- SBI Bank EMI Calculator: With SBI online personal loan EMI calculator, you need not make any effort. Rather, put all your data in specified columns and get instant results. Individuals planning to avail one should calculate the EMI amount beforehand and plan their loan options accordingly.
- ICICI Bank personal EMI Calculator: Once you enter the details, your EMI will be calculated instantly by the online personal loan calculator. To lower your monthly payments, adjust sliders for less loan, lower interest or longer tenure. For higher EMI payments, consider a higher loan amount or shorter tenure.
- Axis Bank EMI Calculator: Axis Bank is the third largest private sector bank in India. Axis Bank Prime Savings Accounts provide enhanced access and higher transaction limits. It offers a unique combination of safety, accessibility, and ease of use, making it an excellent choice for both new and seasoned savers.
- HDFC Bank EMI Calculator: HDFC Bank’s home loan calculator helps you calculate your Home Loan EMI with ease. HDFC Bank’s EMI calculator for a home loan can help you make an informed decision about buying a new house.
- Mobikwik EMI Calculator: It can handle home loans, car loans, personal loans, education loans, and likely any other fully amortising loans. The interest component of the EMI would be larger during the initial months and gradually reduce with each payment.
- Groww EMI Calculator: Manually performing such complicated home loan EMI calculations can be both time-consuming and inaccurate. It gives you an accurate estimate, which is pivotal for financial planning.
Factors affecting loan of EMI:
- Loan Account: The interest rate on your loan is another critical factor affecting the EMIs.
- Interest Rate: Banks/Financial Institutions calculate the interest based on several factors like your income, repayment capacity, credit history, prevailing market situation, etc.
- Credit Score: The credit score issued by CIBIL is a three-digit number issued in the range of 300 to 900. A credit score closer to 300 is considered to be poor for the EMI card and 900 is considered to be good for the applicants.
- Loan Type: A higher principal will result in a higher EMI, while a lower principal leads to a lower EMI.
- Loan Tenure: Personal loan tenure directly affects your monthly payments. Longer tenures result in lower EMIs, making them more manageable to repay.
How can an online EMI calculator help you?
- Instant Calculation: Enter the principal, tenure, and rate of interest to calculate the EMIs payable, and total interest payable and get a detailed amortisation schedule.
- Budgeting: Helps in planning a monthly budget by knowing the accurate amount needed to pay in every month.
- Comparing Loan Options: You can experiment with different loan amounts, interest rates and tenure to compare various loan options.
- Understanding Interest Costs: These features help you understand how much your EMI goes to repay the loan amount and how much goes towards interest.
- Financial Planning: It can help you achieve short-term and long-term financial goals. An EMI calculator becomes an indispensable tool in this context.
Conclusion
EMI stands for equated monthly instalment. Helps you plan your finances. Knowing how much you need to pay each month allows you to plan your finances accordingly and avoid surprises. Calculations will help you decide how much EMI is affordable, how long your loan tenure should be and how much you should borrow.EMI calculators provide complete transparency by breaking down the EMI into the principal amount and interest.
FAQs
1. What happens if I fail to pay my EMIs?
Lenders impose late payment fees if you fail to pay your personal loan EMIs on time. The lender may charge 1%-2% higher interest for every missed EMI. Apart from this, the bank might even charge interest on the late payment amount, which increases your overall loan cost.
2. How can I reduce my EMI?
When the outstanding principal amount reduces, the interest amount also decreases, leading to a reduced EMI.
3. What is an EMI Calculator?
EMI stands for equated monthly instalments. It is an easy-to-use calculator and acts as a financial planning tool for a home buyer. The online EMI calculator is adjustable; you can calculate the EMI payable by entering the values as per your preference.
4. Can I miss an EMI payment? If I do what happens?
Yes, but you have to pay penalty fees for late payment of EMI. This can be in the form of late fees or a higher interest rate for the EMI. This amount is about 1% -2% of the EMI.
5. Can I prepay my EMI loan?
Generally yes, you can prepay your EMI loan. Prepayment helps in reducing the interest and principal component of the EMI in the ensuing months.
Hi, I’m Dev Kirtonia, Founder & CEO of Dev Library. A website that provides all SCERT, NCERT 3 to 12, and BA, B.com, B.Sc, and Computer Science with Post Graduate Notes & Suggestions, Novel, eBooks, Biography, Quotes, Study Materials, and more.
