EMI stands for equated monthly installment and it is the amount that you have to pay in return of loan that you have received from the bank or financial institution. It is one of the most important decision criteria used by borrowers to make a decision about their loan proposal.
One can easily calculate his or her emi by using any online emi calculator available. Online emi calculators are easy to use and give instantaneous information regarding your loan proposal. Apart from providing usual information like loan amount, rate of interest, loan tenure etc, most of the emi calculators provide specific information required for a specific loan. Let us look at what information that you need to put in these emi calculators –
- Loan amount – This is the amount that you need to borrow from a bank or financial institutions. Most of the emi calculators will ask for specific amount to be put in loan amount field.
- Interest rate – It is the rate of interest that a bank or financial institution will charge from you for using their funds.
- Tenure – It is the duration for which you require a loan amount for. You can change this data as per your wish to obtain a right emi for you.
- Processing fee – It is the fees that a bank or financial institution will charge a borrower for processing a loan for you.This amount usually varies from a 0.5% to 4% of the loan amount.
You can take help of a colleague or a banking representative to enter these values on emi calculator. An emi calculator will instantly reveal your loan emi after processing this information. An emi calculator will present this information in easy to understand pictorial format.