logic for EMI Calculator.
EMI Formula
EMI = P × r × (1 + r)n/((1 + r)n - 1)
The SIP calculator online gives you estimates using three different growth scenarios like above-average, average, and below-average returns. You can pick a strategy that best fits your needs and begin investing.
The systematic investment plan calculator facilitates obtaining a close estimate of the amount accumulated after completing periodic payments for the desired tenure.
Estimating future value or the maturity amount will let you choose the most suitable
Fit in the EMI with necessary changes in the monthly budget. Make decisions by changing the factors affecting the EMI.
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The 'Equated Monthly Installment,' or EMI, is the amount you need to pay to the bank or financial institution on a pre-set date each month until the loan amount, including interest, is fully repaid. The principal and interest components of the EMI are designed so that the interest component is considerably more significant than the principal component in the early part of your loan. In comparison, the main element is more critical in the latter part of the loan tenure.
There are two methods for calculating an EMI, namely-
Flat-rate method:
In this case, even though the loan balance is gradually being paid down, each interest charge is calculated using the original loan amount in the flat-rate method. The EMI is calculated by adding the total loan principal and total interest on the principal, dividing the sum by the number of EMI payments, the number of months in the loan term.
Reducing-balance method:
The interest payment is calculated using the reducing balance method, which is based on the outstanding principal. It means that each EMI's interest and principal repayment portions change over time. Interest payments make up a larger portion of the EMI at the beginning of the loan term, as a percentage of the loan outstanding. The interest amount decreases as the loan is gradually repaid over time.
The online EMI calculator can be used to calculate EMIs for various loans, including personal loans, business loans, and car loans. All you need to know is the applicable interest rate on loan and the tenure of the loan.
An Equated Monthly Instalment contains a portion of the principal and interest due on your loan. It must be paid until the end of the term.
If you skip your EMI, your credit score will be negatively impacted, and The lender bank or financial institution may levy late fees and penalties.
The EMI can change during repayment tenure if you make a lump sum part payment towards the loan. This payment may either reduce the repayment tenure or the EMI amount.
No cost EMI means you don't have to pay any additional interest on the loan taken. As a result, you only have to pay the product's actual price through EMIs.
Missed EMIs are divided into two groups-
a) Major default:
These, as the name implies, are subject to the harshest penalties. If you have not made any payments in the last 90 days or more, it is considered a major default. It will appear on your credit report and may have an impact on future loans.
b) Minor default:
If the last payment was made within 90 days or less, the missed EMI is considered a minor default. Borrowers who have minor defaults on their loan accounts can avoid the negative consequences if they act quickly enough.
Disclaimer
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