What is an EMI?
Equated Monthly Instalment (EMI) is a fixed amount that a borrower pays every month to pay off both interest and principal loan amount. It is paid for several years until the loan is fully cleared. Loans give financial support in various situations, whether it is handling medical emergencies, overseas education, buying a house, wedding expenses, etc. Whenever it is about seeking a personal loan or any other loan, EMI is one critical factor that needs to be considered. It varies depending on three variables – total loan amount, interest rate, and loan tenure.
It is advisable to calculate EMI in advance, to get a clear picture of how much money is required per month to clear the loan gradually. It gives borrowers a chance to set their budget and acquire loans within their capacity. Below is a mathematical formula to calculate EMI manually:
E = EMI
P = Principal Loan Amount
r = rate of interest calculated on a monthly basis
For instance, the borrowed amount is ₹10,00,000 at 10.5% annual interest for of the tenure of 10 years. Then, the EMI calculated as per the above formula will be ₹13,493 for 120 months. However, not many rely on this complex formula to calculate EMIs, as nowadays there are freely available
EMI calculators on the finance provider’s website. No doubt, the formula is also helpful, but you might not get 100% accurate results even after spending a considerable amount of time.
How SimplyCash Personal Loan EMI Calculator Works?
Calculate EMIs for a personal loan up to 1.5 lakh with the SimplyCash app. Simply Cash’s EMI calculator facilitates calculations of monthly instalments in minutes, with accurate results. Once a suitable EMI amount is derived, a faster decision can be taken for loan application and disbursal.
The working of the Simply Cash EMI calculator depends on three variables - loan amount, tenure, and interest rate. Borrowers can try different combinations of these three variables dragging the blue dot, till a suitable EMI is derived. The tool is very simple and easily available on the SimplyCash app and SimplyCash website. Save your time from manual calculations and rely on the EMI calculator for quick results.