What is an EMI?
Whether you apply for a car loan, home loan or a
personal loan, you have to pay an Equated Monthly Installment. To calculate the
monthly payments accurately, people use an EMI calculator. Soon after you
decide to apply for a loan, you need to research on available types of loans in
the market. Today, financial institutions and banks in India offer all
different kinds of loans to fulfill different property buying needs of the
residents. As you avail advance cash from the banks to buy your dream house or
car, it is clear that you have to pay the borrowed money back. Further, you
need to pay some interest along with the principal loan amount to the banks.
The loan is to be paid back in equal monthly installments. An house loan
calculator calculator makes it easy for the loan applicants to calculate the
monthly installments and schedule the payments.
Equated Monthly Installment EMI, a monthly amount is
to be paid by the loan borrower to the financial institution or the bank from
where the loan is taken. EMI is the combination of principal amount of the loan
and the interest and is paid until the full loan amount is cleared. The
interest and total principal amount is divided by tenure and this sum is
generally paid monthly. Normally, the interest and principal amount doesn't
change but its proportion might change as times. With every consecutive
payment, the loan borrower pays more towards principal amount and less as
interest.
Using EMI calculator
With an online EMI calculator, the calculations have
been further simplified for the loan borrowers. Every bank or the financial
institution offers top quality EMI calculators to assist the borrowers to
calculate equal monthly installments. There are many benefits of using an
online EMI tool.
• With graphical charts and easy to understand
graphs, the online EMI calculators assists the loan borrowers to easily
calculate the monthly installments.
• Making accurate calculations is possible with a
sophisticated online calculator.
• An online calculator assists you to calculate car
loan, home loan or a personal loan instantly.
• It is easy to determine monthly payments against
interest and principal amount on the loans. With this, you can judge how
suitable and affordable a loan is for you.
• Use the calculators to avail quick loan quotes as
per the EMI
Calculating the equated monthly installment is simple
through an EMI calculator. Simply enter details like rate of interest, period
of loan and the principal amount to make instant, accurate calculations. Along
with the basic monthly installments, you can calculate the total payable
interest and total amount along with interest. The EMI will differ as per fixed
and variable rate of interest. The Equated Monthly Installment that you attain
gives an idea of personal financial commitments for the future. For example,
you can find out whether you can afford personal financial commitments during
the period of the loan. With this, you can plan personal finances better and
take efforts to fulfill life's requirements.
HDFC, India's leading residential finance provider
deals with a wide range of home loans, property loans and even deposit schemes.
Use the house
loan calculator to know your monthly installments for
the loan you avail.
Source: http://www.articles.howto-tips.com/HowTo-Article-Directory/calculating-loan-installments-emi-calculator
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