This information will be essential if you are considering taking a loan to fulfil your needs. Whenever you take a loan, you should know the amount of your EMI.
There are many types of loans, so if you want to take a personal loan, then first of all, you should know how much interest is being charged by which bank. For this, you can find out through the official websites of different banks or by visiting the bank.
All banks have different interest rates. You can know in advance, at your convenience, how much the EMI of your loan will be. For this, you will need an EMI calculator. This will let you know how much EMI you must pay to repay the loan before time.
What is loan EMI calculation?
If you are applying for a personal loan, it is good to know about its EMI first. The personal loan EMI calculator tells you about its pre-determined time and how much EMI you will have to pay, that too with interest.
For this, you need to have three things. The first is the loan interest rate, the second is the loan time limit, and the third is the personal loan amount. You can find out how much your EMI will be using these three. The higher the loan amount, the higher its EMI with interest.
How to calculate the EMI amount
First, you should know the loan amount to calculate the EMI of a personal loan.
Principal amount
If you take a loan of Rs 5 lakh from a bank, this is your principal amount.
Interest rate
If you have taken a loan from a bank, you have to pay some money to the bank as interest. The interest amount is deducted in simple language as interest rate. This is charged annually by the bank. Suppose you took Rs 5 lakh at 10 per cent per annum; then the interest rate is 10 per cent.
Loan Tenure
If you took a loan of Rs 5 lakh from a bank at 10% interest for 36 months, your loan period is 36 months. Now you have all three crucial pieces of information available, according to which you have to pay an EMI of Rs 16133 every month to the bank for Rs 5 lakh.
How to see loan EMI calculator
If you want, you can go to the official website of any bank and open their loan EMI calculator option to learn about the EMI of the loan, or you can personally go to the bank and find out about the EMI of the loan. The bank does not charge you anything for this and also gives you complete information about it.