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What is EMI?

EMI (Equated Monthly Installment) is a fixed amount of money paid by a borrower to a lender at a specified date. It is commonly used to repay loans, such as home loans, car loans, personal loans, etc. The EMI consists of both the principal amount of the loan and the interest and remains fixed for the entire loan period unless there is a specific change in the terms of the loan agreement. EMI payments are structured in a way that allows borrowers to repay the loan amount in regular, manageable installments over a predetermined period.

What is an EMI calculator?

An EMI calculator is a free tool used to calculate the Equated Monthly Installment (EMI) that a borrower needs to pay towards a loan. It helps people understand the approximate monthly repayment amount based on various loan parameters such as the loan amount, interest rate, and tenure.

Why EMI Calculator is important?

• Loan Planning: Before taking a home loan, or personal loan, individuals can use the EMI calculator to estimate the monthly outflow. This EMI calculator helps in planning the budget within their financial capabilities.
• Comparison of Loan Options: The EMI Calculator allows borrowers to compare various loan options available from different lenders by entering the loan amount, interest rates, and loan tenure. This helps in choosing the most suitable, option based on affordability.
• Financial Management: Individuals can understand long-term financial commitment, by calculating EMIs, It assists in budgeting and managing other expenses alongside the monthly loan repayment.
• Repayment Structure: Browsers or lenders can easily understand the repayment structure with the help of an EMI calculator. It shows a detailed about the monthly payments toward principal and interest components.
• Quick and Easy: It provides instant results, saving time and effort. They offer a clear understanding of the financial commitment involved in taking a loan, showing full details including; monthly payable, interest payable, and total amount payable.