What is an EMI calculator?

An EMI calculator is basically a tool to calculate the Equated Monthly Instalment (EMI) for a loan including home loan, car loan, personal loan, business loan, and loan against securities. An EMI consists of interest and principal repayment made to repay a loan on a monthly basis.

What are factors that affect the due amount?

The factors that affect the due amount are loan term, rate of interest and amount of the loan and are listed below.

• Loan Term: A loan term is a repayment schedule for a particular loan. For example, if a loan of 10L is taken for a period of 3 years, the 3 years is the loan term.
• Rate of Interest: The rate of interest or interest rate is the amount that is charged above the principal amount by the lenders to the borrowers and is a certain percentage of the principal.
• Amount of Loan: The amount of loan is the money a borrow owe to a lender at any given time which includes unpaid principal, interest on unpaid principal, defaulted payments, interest on defaulted payments and other charges. The amount of loan also includes the interest on other charges.

How does online EMI calculator helps?

The online EMI calculator help in getting an actual estimate of the instalment that help people plan their finances. The loan EMI calculator also saves time by doing complex calculation, eliminating any chance of miscalculation and providing with and accurate estimate every time without the need of doing calculations manually.

Regardless of what type of loan you have, secured or unsecured, it is important that you know the amount of monthly installment you are going to pay to the bank or financial institution and that’s where this Banking Vista’s EMI calculator in India becomes helpful.

What is formula to determine loan EMI amount?

The formula to determine loan EMI amount is EMI = [P x R x (1+R) ^N]/ [(1+R) ^ (N-1)], 

where,

• P is the principal amount.
• R is the rate of interest (i.e., R = Rate of Annual interest/12/100. If rate of interest is 10% per annum, then R = 10/12/100)
• N is the loan tenure, loan term or duration in number of months.

For example, if I borrow ₹10,00,000 from the bank at 10% annual interest for a period of 10 years (i.e., 120 months), then EMI = ₹10,00,000 * 10/12/100 * (1 + 10/12/100)120 / ((1 + 10/12/100)120 – 1) = ₹13,215.07. i.e., I will have to pay ₹13,215.07 for 120 months to repay the entire loan amount. The total amount payable will be ₹13,493 * 120 = ₹15,85,808.84 that includes ₹5,85,808.84 as interest toward the loan.

What are the types of EMI calculators?

There are five main types of EMI calculators that include home loan emi calculator, car loan emi calculator, personal loan emi calculator, education loan emi calculator and loan against property emi calculator.

• Home Loan EMI Calculator: A home loan EMI calculator is an online tool that helps calculate the Equated Monthly Installment (EMI) for a home loan quickly. The formula used for home loan EMI calculation is given below.
  • EMI=(1+r)n−1P×r×(1+r)n​, Where:
    • P = Principal loan amount
    • r = Monthly interest rate (annual interest rate divided by 12 months and converted to decimal)
    • n = Loan tenure in months
• Car Loan EMI Calculator: A car loan EMI calculator is also an online tool that helps estimate the monthly payment (EMI) needed to make toward repaying for a car loan. Like a home loan EMI calculator, it also simplifies and speeds up the calculation process and let you know how much to pay each month for a particular loan amount, interest rate, and loan tenure. The formula used to calculate car loan EMI is same as home loan.
• Personal Loan EMI Calculator: A personal loan EMI calculator is an online EMI calculating tool that calculate the monthly payment (EMI) needed to repay a personal loan within seconds. Personal loans are unsecured loans provided by banks or financial institutions for several purposes including covering medical expenses, education, travel, or debt consolidation.
• Education Loan EMI Calculator: An education loan EMI calculator is an EMI calculating tool designed to help parents and students calculate the Equated Monthly Installment (EMI) they need to pay when taking an education loan. The education loan is typically offered to finance higher education, including tuition fees, accommodation, books, and other study-related expenses. The education loan emi calculator also provides a clear picture of financial obligations of a parent and help them plan the repayment schedule effectively.
• Loan against Property EMI Calculator: A loan against property often referred as LAP EMI Calculator is an online tool that helps you calculate the Equated Monthly Installment (EMI) payable on a loan by mortgaging your property. This type of loan allows you to leverage the value of your property to borrow funds for various purposes, such as business expansion, education, medical needs, or any personal use. The Banking Vista online EMI calculator provides a quick and accurate way to determine the repayment obligations based on the inputs.

How to use Banking Vista online EMI calculator?

To use banking Vista’s online EMI calculator, follow the below given steps.

• Enter the loan amount, number of payments and interest rate in the respective fields.
• The calculated EMI value is displayed on the bottom of the calculator.

What are the advantages of Banking Vista EMI calculator?

The main advantages of Banking Vista EMI calculate is its entirely free to use. The other benefits of our loan calculator online is that it provides 100% accurate calculation instantly.

For what loans I can use the Banking Vista EMI calculator?

You can use Banking Vista online EMI calculator for all types of loans including personal loans, business loans, car loans, education loans and loan against property. Before using the calculator, you must have details on the payable interest rate on the principal amount and the tenure of the loan.

How much debt-to-income ratio is needed to avail a loan?

To avail a loan, you must have a debt-to-income ratio of less that 50%. In case, your debt-to-income ratio is more than 50% the lending institution will believe that you don’t have resources to repay the loan.

What does an EMI consist of?

An EMI or Equated Monthly Installment consists of principal amount and interest payable until the tenure ends.

What happens if I fail to pay my EMIs?

You you fail to pay your EMIs banks and Financial institutions will levy heavy penalties on missed or unpaid EMIs. Generally, there’s a fine imposed by the lender as well as the bounce charges on the account which is linked for automatic EMI payment.

Is EMI good or bad?

EMI is good as well as bad and it all depends on your earning and expenditure. EMI is good as it allows you to pay for big purchases in parts at the same time it is bad as it sometimes lead to overspending. So, if you have multiple EMIs going on or the EMI amount is too high, you will struggle to repay them on time and once you fail to do so, it will negatively impact your credit profile.

Does EMI affect CIBIL?

Yes, EMI do affect CIBIL score, which is one of the most important indicators of your creditworthiness in India. Your CIBIL score is a three-digit number that ranges from 300 to 900 and reflects your credit history, including your loan repayments, credit card usage, and overall credit behavior.

The default in EMIs will decrease your CIBIL score affecting your loan eligibility whereas timely payment of EMIs will increase your CIBIL score and make you eligible for more amount of loan in future.

Is there any disadvantage of EMI?

Yes, there is a disadvantage of EMI that it comes with interest charges and you end up paying more for your purchase.