EMI is the amount payable every month to the bank until the loan amount is fully paid off, and it consists of the interest on the loan. The sum and interest are divided by the months when the loan has to be repaid. You must pay this amount monthly. The interest component of the EMI would be larger during the initial months and gradually reduce with each payment.
How to Use an EMI Calculator?
The EMI Calculator is very easy to use and is quick to perform. Using this Personal Loan emi calculator, you can easily calculate EMI for home, car, personal, and other loans.
For that, you’ll have to enter the following information in the calculator:
- The principal loan amount that you wish to avail
- Loan term
- Rate of interest in percentage
- EMI in advance
- Then use the slider and adjust the values in the EMI calculator form. After that, make sure that you enter precise values. When the values are changed, the EMI calculator will re-calculate your monthly payment amount.
Also Read – 3 Lakh Personal Loan
The calculator will populate an amortisation table that shall depict the break-up of the total payment and the percentage of total interest versus the principal amount of all payments made against the loan. Then the payment schedule table showing payments made every month for the entire loan duration is displayed, showing interest and principal components paid each year.
During the initial loan period, a large portion of each payment is devoted to interest, and eventually, larger portions pay down the principal.
If you want to make part prepayments to shorten your personal loan schedule, then it’s best if you use the personal Loan EMI Calculator with Prepayments. And if you wish to calculate how much loan you can afford, you can also use the loan calculator.
