EMI stands for Equated Monthly Instalment which is need to pay on monthly basis as the amount of some product is high and user unable to pay the whole amount in one time. Then users needs to give some guarantee proof to their respective Bank and bank gives them the whole loan amount. In that amount Bank defines monthly EMI plans where they charge different Rate of Interests on the remaining amount from total loan amount.
Also person can control the number of EMI’s as if they want less number of EMI’s then the amount per EMI will rise up and if number of EMI’s increases then the amount per EMI will be less as compared.
In this term of Equated Monthly Instalment or EMI buyer needed to pay a little extra than the total sale price because bank takes interest on the given loan amount and that interest amount will be adjusted in the monthly EMI.
How to use EMI Calculator?
In the above given EMI calculator, things are pretty much easy to put value and understand things. You only need to fill the total loan amount and interest rate and them the time period for EMI’s, you can select monthly or yearly time.
And after that you will get all EMI details in the given right box beside. Also when scrolling down the whole chart will appear which gives the month wise table with monthly EMI amount so that things will be easy to understand and manage.
Keep in mind
If you want to save your money, then you can use these simple ticks and they are really helpful in terms of saving and are very effective.
- Lower Interest rate: Best thing to get most profit is to find a bank or agency which is offering lowest interest rate among all. Interest rate is inversely proportional to your profit as your Interest rate is lower, the total profit will be higher.
Also, you can get a list of bank with their respective loan interest rate amount. You can choose wisely.
- Higher EMI & Lower Tenure: Higher EMI means the value per EMI will be high and if value is high then the Tenure period will be automatically lower. In that case, you will cover all your EMI’s very soon and become solo owner of that property.
- Down Payment: Also while taking loan, you can also offer some money as Down payment and this payment will be deducted from total product value and loan amount will be lesser as above. In that sense, you have lower principle value and when calculating interest rate on less value money, it will be lower as comparison to high principal value money. So, this is also an effective money saving tip from us.
Also if you’re trying manual method to calculate the EMI on your loan amount then you can use this following formula but best practise is to use the above tool so that you can get your EMI record in few seconds.