Loan EMI

Total Interest Payable

Total of Payments

(Principal + Interest)

Lending is an age-old process that provides the required funds to the potential borrower. The conditions are that the borrower has to repay the loan amount at a rate of interest and within a fixed period. Now, repaying the whole amount at once creates a huge burden on the borrowers. Hence, EMIs take the responsibility to divide those burdens into easy equated monthly installmentsthat a borrower has to pay each month of the tenure. Nowadays, an EMI calculator efficiently does the calculation in a blink to provide a perspective of the possible financial responsibility. Read on to make your perception clear about a loan EMI calculator.

An EMI is a monthly payable portion of loan repayment. Borrowers use to consider EMI as a vital factor before taking up a loan. Because it creates an effect on their monthly budget and they have to judge their financial ability to repay the loan without any glitch. Thus EMI calculation is compulsory for the borrowers before borrowing funds from the lenders. And a loan EMI calculator can help them. A loan EMI calculator is a financial instrument that online lenders and credit platforms offer to borrowers free of cost. No matter what kind of loan you’re going to apply for, an EMI calculator can calculate when you put loan amount, tenure, and rate of interest (ROI) in the calculator. The instant and accurate EMI calculation saves time and helps to alter your monthly budget to get the loan that you need.

When you pay an EMI, you’re repaying a part of the principal along with some interest. That interest can be at a fixed rate or a floating rate. Unlike fixed ROI, floating ROI keeps changing from time to time. And your EMI will also keep fluctuating. But the formula to calculate the EMI is constant which is EMI=[PxRx(1+R)N]/[ (1+R)N-1]. Here you should know the vital components that construct this formula, such as P or principal, R or ROI, and N or tenure.

- For example, if you borrow Rs. 2,00,000 for 2 years at 20% ROI p.a., then as per the formula
- P= 2,00,000
- N= 2 year= (12x2) months= 24 months
- R= 20% p.a.= 20/12= 1.66% p.m.
- So, the EMI will be [PxRx(1+R)N]/[ (1+R)N-1]

=[2,00,000x1.66/100x(1+1.66/100)24]/ [(1+1.66/100)24-1]

=Rs. 10,179.16 - The whole calculation can be time consuming but not for an online EMI calculator. It can calculate any amount easily.

The EMI calculation process of an EMI calculator requires the basic yet variable components such as loan amount, rate of interest, and tenure. And the EMI will be different depending on these components.

##### Loan Amount

Also referred to as principal, the loan amount is the base on which your interest will be payable. Irrespective of the loan type, your EMI will keep increasing during the calculation if you opt for a higher amount.##### Rate of Interest (ROI)

The interest you’re going to pay also depends on the ROI you’re opting for or the lender is going to apply. This can be different for different loans and lenders. Besides, the types of interest such as floating or variable can also make a huge difference in the EMIs.##### Tenure

Depending on the type of loan you’re applying for, your tenure will vary. It also depends on the lender and the amount you’re asking for. Besides, the ROI also has connections with tenure. An EMI calculator, can deal with all of these variable components and show you the exact result of the calculation.

The formula to calculate your EMI is [PxRx(1+R)N]/[ (1+R)N-1] where P, R, and N stand for principal, rate of interest, and tenure, respectively. As long as Roopya’s loan EMI calculator is there, the EMI calculation is easier than you can think. Put your loan amount, tenure, and ROI on the calculator will generate the accurate EMI on the screen.

The formula to calculate the pre-EMI amount and the EMI amount is the same, which is [PxRx(1+R)N]/[ (1+R)N-1]. Unlike EMI, P stands for the disbursed loan amount to date in pre-EMI interest calculation.And the borrower only pays the interest component.

Opting for either EMI or pre-EMI solely depends on your purpose and financial conditions. Pre-EMI empowers you to pay less than the actual EMI till the construction completes. But it also means that you’ll end up paying more than the regular EMIs. If your loan tenure is 20 years and the home construction takes 4 years to complete, then your actual tenure will be 24 years. However, if you’re planning to sell your property right after the complete construction, then pre-EMI will be profitable for you.

In the case of home loans, the pre-EMI option is available to ease the EMI burden. In simple terms, a borrower has to pay interest on the partially disbursed loan amounts until he or she gets possession of the property. That is pre-EMI interest. After getting the possession, the borrower is chargeable to pay the EMI.This consists of the principal and the interest amount. In case of any delay in the construction or the possession, the borrower has to keep paying the pre-EMI.

The abbreviation EMI stands for Equated Monthly Installment. A borrower has to pay it

throughout a repayment tenure for taking up a loan, such as a personal loan, home loan, car

loan, etc.The loan EMI calculator available on Roopya’s website can help you to calculate the

EMIs accurately.

throughout a repayment tenure for taking up a loan, such as a personal loan, home loan, car

loan, etc.The loan EMI calculator available on Roopya’s website can help you to calculate the

EMIs accurately.

If the EMI is not deducted on the due date, then the lender will charge you for late fees on the overdue amount. However, if the event happens due to a bank holiday, then the bank won’t charge any fee. Usually, the EMI gets deducted on the next day if the due date is on a holiday. But keep sufficient balance in the account to avoid any ECS or cheque bounce.

If the lender considers it, then you can pay the EMI after the due date. But the entire process is chargeable and you might have to pay late fees at a pre-determined rate.

EMI Moratorium is an EMI holiday that the Reserve Bank of India offered when the pandemic hit our country last year and we were dealing with a financial strain. During the moratorium period ranging from 1st March 2020 to 31st August 2020, borrowers were free to avoid the EMI payment due on those months. But it was not an EMI waiver as the borrowers had to pay the accrued interest on the outstanding loan amount after that moratorium period.

An EMI due date is the fixed and pre-determined day of each month on which your EMI will be debited from your account. However, shifting this date is subject to consideration with the lender.