The credit market in India is steadily on the rise. It is currently the 4th largest credit industry in the world, recording a CAGR of over 11% year-on-year. A vast majority of these advances are short-term credits such as personal loans and credit cards. Combined, these two financial products account for 78% of all credit lending in India. Loan repayments include EMIs and borrower should consider the EMI amount to accurately plan their current and future finances.
There are several EMI calculators available online; one must choose an accurate EMI calculator and learn its usage to calculate the exact EMI amount they are liable to pay for a loan.
How can an online EMI calculator help you?
The number of credit accounts is growing at an even higher CAGR of 28% and has reached 107 million accounts at the end of FY18.
Regardless of the type of loan you want to avail, be it a secured or unsecured advance, it is paramount that you know how much monthly installment you have to make before you avail it. That is where an EMI calculator India can be immensely helpful.
- It helps you get an accurate estimate of your EMI amount so that you can plan your finances accordingly. Make sure that your debt-to-income ratio is below 50% to maximize your chances of loan approval.
- A loan EMI calculator helps you save your valuable time. You don’t have to do the complex calculations manually, which can be quite time-consuming.
- It eliminates any chance of a miscalculation, providing you with an accurate estimate every time.
- It is highly specific for each type of loan. The EMI breakup of home loan, for example, is different from that of personal loan.
The formula to determine loan EMI amount
There is a specific formula that TAXAJ uses to compute the EMI amount for a loan.
EMI = [P x R x (1+R) ^N]/ [(1+R) ^ (N-1)], where –
- P is the principal amount
- R is the rate of interest
- N is the loan tenure
This is the standardized formula used by any online loan calculator. Some variables may be added based on the type of loan.
How to use TAXAJ online EMI calculator?
The TAXAJ online calculator is easy-to-use and takes just a few seconds of your time. Here’s how.
- Insert the variable vis-à-vis principal, tenure and rate of interest.
- The calculated EMI value will be displayed immediately.