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A loan plays an important part in everyone's life because it helps to fulfill the different needs of an individual. A loan can be taken for education or for buying a house and even for personal use. Basically, a loan is a financial agreement between two parties, a lender(Bank or any other financial institution) and a borrower(an individual). With this agreement, the lender agrees to give a specific amount to the borrower and get it back along with the interest amount on monthly basis.
This monthly installment done by the borrower is known as EMI.
Whenever a person plans to take a loan the first thing which comes to mind is the monthly EMI. EMI stands for Equated Monthly Installment. The amount needs to be paid by the borrower every month on a particular date to repay the borrowed money. EMI is beneficial because it helps to reduce the financial burden on the person as it would be difficult to repay the whole amount in one go. If you wish to know your EMI, an EMI calculator is the best and easy option that can be used at zero cost.
Soulwallet.com provides an EMI calculator where you need to enter the information of the loan such as the principal amount, tenure and interest rate and it will show you the fixed monthly installment. So take the advantage of the tool and calculate the EMI without any cost at any time.
The main three variables important for calculating the EMI are loan amount, tenure and interest rate. You can calculate the EMI with three different ways they are:
To calculate the EMI in excel use the formula PMT (rate, nper, pv).
The variables in the above formula are:
rate – Interest rate for the loan.
nper – Total number of payments for the loan.
pv – Present value/principal.
EMI = [P x R x (1+R)^N]/[(1+R)^ (N-1)], In this formula the variables stand for:
EMI is the equated monthly installment
P is the principal or the amount that is borrowed as a loan
R is the rate of interest that is levied on the loan amount (the interest rate should be a monthly rate)
N is the tenure of repayment of the loan or the number of monthly installments that you will pay (tenure should be in months)
This is the easiest and less time-consuming way to calculate EMI. From home loan to car loan you can use this tool easily. This also uses the main three variables that are loan amount, tenure and interest rate.
EMI calculator is of different types depending on the loan you take. With Soulwallet.com you can use the tool and plan for the loan of your choice. Some of the loans EMI calculator are explained below:
Personal loans are unsecured loans that can be used for any purpose. As it has a high-interest rate and shorter duration. With the help of an EMI calculator, you can check the installment amount and choose the loan as per your needs and budget.
While buying your own house is a dream for many but it is also a responsibility because the loan amount can be huge. With an EMI calculator, you can check the amount and select the loan according to your budget. Such loans have a long duration and that can help to decrease the monthly installment amount.
Buying a dream car can be easy with the EMI calculator as it would provide you the fixed installment amount basis on the three parameters that are loan amount, tenure and interest rate. After the result, you can choose the loan best suitable for you.
EMI can be calculated within seconds online on the Soulwallet.com website. To use this easy tool you need to input a few variables they are:
The loan principal or the actual amount borrowed as a loan for purchasing the house, car, or any other requirement. This loan amount depends upon a number of factors related to the loan applicant and the cost of the purchase. The interest is applied on this loan principal amount. Higher the loan amount, higher is the EMI that you will pay each month. The principal amount that you wish to borrow should be entered into the EMI calculator in the space which says loan amount.
This refers to the total time period of repayment of the loan. Loan tenures vary depending on the type of loan, loan principal and also the lender you are borrowing from. For example, personal loans are shorter tenure loans up to a maximum of 5 years whereas home loans are longer tenure loans which can go up to a maximum of 25-30 years. The longer the tenure of the loan, the more will be the interest that you will have to pay and thus higher will be the EMIs.
It is the rate at which the interest is charged on the amount lent to the borrower. The interest rate also varies from one type of loan to another, on the basis of the amount lent and from one lender to another. It is best to compare the interest rates offered by different lenders for a particular loan, before you make the final choice for the loan. The EMI can vary according to the type of interest rate charged on the loan, fixed, floating or hybrid.
EMI calculator is not only easy and less time-consuming but it also provides you with the best options of different loans to choose from.
The EMI calculators work on three parameters that are loan amount, tenure and interest rate. The only difference which comes while calculating the EMI is the restriction of the loan amount which depends on the type of loan.
You will get accurate results on both types of tools but the online EMI calculator is more hassle-free, easy and less time-consuming.
There might be a slight change in the calculated EMI if the three parameters ( loan amount, tenure and interest rate) change while availing of the loan at the bank.
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