Know how a bank provides a deal for their customers
A home loan EMI calculator helps you to know the nearby amount of the EMIs that you will need to pay towards your Home Loan and helps make an informed decision. The home loan EMI calculator also functions as a home loan interest calculator, so that you will be able to know the interest amount due on your home loan, in addition to the overall EMI amount, in just 3 simple steps:-
Know what questions the users frequently asks about EMI calculators
EMI stands for Equated Monthly Installment (EMI). It is a fixed payment amount made by a borrower to a lender at a specified date each calendar month as decided. EMI are used to pay off both interest and principal each month, so that over a specified number of years the loan is paid off in full. With most common types of loans—such as real estate mortgages, auto loans, and student loans—the borrower makes fixed periodic payments to the lender over the course of several years.
Home loan EMI is the monthly payment you make to repay your Home Loan. EMI is made of interest and principal in varying ratios. If you take a Home Loan, you’ll pay a part of the principal and interest due every month until the entire loan is cleared paid off in full.
Pre-EMI is where you have availed only a part of the loan, you would be required to pay us only the interest on the amount disbursed till the full loan is availed. That interest is called pre-EMI interest (P-EMI) and is payable monthly until the final is made, after which the EMIs would commence.
You should know what you are paying each month as an Equated Monthly Installment (EMI) or what you are going to pay as a loan installment to lender. The EMI is calculated on the basis of combinations of following factors namely principal amount (P), interest rate (R), tenure of loan (N) and computation method.
To calculate the interest you are going to pay, you can use the following mathematical formula:-
Interest = (interest rate / number of payments) * loan principal
It is an interest rate that moves up and down with the rest of the market or along with an index. It can also be referred to as a variable interest rate because it can vary over the duration of the debt obligation. This contrasts with a fixed interest rate, in which the interest rate of a debt obligation stays constant for the duration of the loan's term.
The interest amount is directly proportional to the floating rate of interest. So, according to it if floating rate interest is increased on the other hand the interest amount also increased.
