Benefits of EMI
EMI allows you to buy your dream home or car as you pay off monthly installments.
Monthly payments are known and distributed over the period thus it does not burden your wallet.
There is no involvement of multiple parties. It is directly paid to the lender.
Here is the comparison for your 2 loan options:
|Factors Impacting your Choice||Lender 'A'||Lender 'B'|
|Total Interest Paid||0||0|
|Total Amount Paid||0||0|
If you choose Lender 'B' over 'A', you can save:
|In EMI's ( Per Month )||0|
|In Total Interest Paid||0|
How to use this CalculatorWith this calculator, not only can you calculate your monthly EMI's, but you can also compare the differences between offers of two different bank/Financial institutions.
To use the calculator, you can follow these simple steps:
- Input the amount for which you're planning to take the loan for
- Input the number of months for which you're planning to take the loan for.
- You may opt for a certain Down-payment( like when you buy your dream house ). Put in whatever amount you're planning to pay upfront. This is optional so you may choose to put '0' as well.
- Put in the interest rate the first company is offering you.
- Put in the interest rate the second company is offering you.
- Click the button to get the results in a simple yet informative tabular form.
EMI (Equated Monthly Installment) is one part of the equally divided monthly amount a borrower pays to the bank or organization they have taken the loan from for a fixed tenure.
What affects EMI
The total amount that is borrowed from the financial institute.
The rate at which the financial institute is offering the borrower the principal amount. Higher the interest rate higher is the EMI that needs to be paid back.
The total duration in which the principal amount and the interest component needs to be paid back to the financial institute.
The rate at which the financial institute borrows money from the central bank. If central bank charges a higher interest rate bank increase their interest rates as well ultimately increasing the total amount of EMI.