Q1. What is an EMI?
Ans. EMI is an amount which the individual or borrower has to pay back to the lender every month on account of the loan amount provided to him. The EMI amount is deducted every month from the loan amount to get to the balance payments.
Q2. What does the EMI amount comprise of?
Ans. The EMI comprises of principle and interest. Principle includes the actual loan amount divided by the tenure period. And the interest is the added cost to the individual or the borrower.
Q3. What is an EMI calculator?
Ans. They are basically a guide, a tool to help the individual calculate the amount that he will be giving monthly to the bank whenever he takes a loan. It help in making out a proper chart about the days when the individual will be making the payments.
Q4. How can a user access an online EMI calculator?
Ans. The individual has to turn on his internet, open the link to the loan calculator and fill in the details like the payable amount, the loan term, interest rate, the method of payment and just click on calculate.
Q5. What parameters are necessary for producing the result?
Ans. The following parameters are needed for calculating through EMI calculators-
– Loan amount
– Tenure periods
– Interest rate
– Processing fee
Q6. Does the online EMI calculator take consideration from all the banks?
Ans. Different banks offer different interest rates on the loan, depending upon the type of loan like car loan, property loan, education loan, marriage loan and so on. The interest rates also differ from bank to bank, subjective to their bank policies. The online calculator does all the research work from all the banks and calculates to the loan and the EMI amount for the banks and the individual can choose the best plan.
Q7. What are the payment periods of the EMIs?
Ans. Traditionally, EMIs are paid monthly, but there are various other options available to pay for the loan. The individual can either pay the amount periodically until it matures, or pay altogether in the end or pay the face value in the end. EMI calculator provides the individual with all the options, and even guides him so that he is fully cognizant of the rules and policies and payment procedures.
Q8. Does EMI calculator measure the individual’s eligibility?
Ans. Online EMI calculator’s work is not just limited in calculating the loan amount and interest rate, but also to tell the individual, whether the loan will be made available to him or not. EMI calculator calculates the individual’s assets and the condition and whether he will be liable to repay it to the bank.