Almost all aspects related to availing a loan has been automated with the introduction of the online application and document submission options. Repayment as well as loan management too have been improved or simplified with the EMI calculator. This feature is available in the form of a free online tool that can be accessed by anyone with an internet connection.
A personal loan EMI calculator gives a clear idea of how much the loan EMI will be for a particular value of the principal and the rate of interest. The calculator uses the formula given below for EMI calculations:
EMI= P x R x (1+R)^N / (1+R)^N-1
Where P= Principal,
R= Rate of interest per month
N= Loan/repayment tenure in months
When using the EMI calculator, the user will have to feed in the details of the loan which include the amount borrowed or to be borrowed, the rate of interest (annual) and the tenure of the loan.
Also Read: Usability of a Personal Loan EMI Calculator
With these values duly filled in the right places, the personal loan EMI calculator will display the tentative amount that will have to be paid as EMI every month during the repayment of the loan.
By means of this convenient tool, prospective loan applicants can estimate the EMI for the amount they wish to borrow and thereby, check the affordability of a loan against their income and other expenditures.
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.