EMI Full Form And How To Calculate EMI?
1. What Is an EMI full form?
- The complete EMI full form is Equal Monthly Installments.EMI is the amount payable to the bank or other lender at religious intervals on a specified date. Many customers have loans to fulfill their dreams like car purchases, buying property, and education, so they go for those loans.
- The loan can be paid in equal monthly installments. This EMI full form is calculated on the basis of principal, interest, and tenure. If you plan to take a loan, approach a lender for an EMI that is convenient for you.
2. Components Of EMI?
EMI’s full form consists of two types of components. There are,
- 1. Principal Component
- 2. Interest Component
Calculating EMI requires loan amount, tenure and interest rate, etc. If you have all these then you can use the EMI calculator on the official website of the company. EMI contains two types of components. In the initial phase, the specific part of EMI is the amount of interest only. In the end, the principal is the part of EMI payment plus interest. Reduces costs and creates.
3. Benefits Of EMI
Easy way to pay
You don’t need to go directly to the borrower to pay your monthly amount. Just set the auto debit option from your bank account on that installment date and they will directly deduct your EMI.
Flexible payment options
The lender selects the EMI amount and repayment period based on your income.
No lump sum payment
This EMI full form does not require a lump sum payment. It can be very difficult for many people. It extends the borrower for a long time and thus it is affordable.
4. Factors Depending On EMI
- Loan amount
- Interest rate
- Term of loan
- Monthly rest period
The loan amount is the full principal amount you have purchased. The term of the loan is the time you have to repay your loan in full with interest. The lender sets your interest rate.
5. What Is EMI Calculator?
EMI calculator is a digital tool that helps you calculate your EMI in equal monthly installments. This tool helps borrowers know the amount to be paid every month based on the loan amount they can repay, loan tenure, interest rate, etc. There are various calculators available.
- Personal Loan EMI Calculator
- Home Loan EMI Calculator
- Education Loan EMI Calculator
6. Types Of EMI Calculator
Depending on your chosen loan type, you can use various EMI calculators:
Home Loan EMI Calculator:
Home loans generally have a large principal and a very long tenure.
Education Loan EMI Calculator:
There is a grace period for loans under the Education Loan EMI category. This loan can be repaid after completing the course.
Personal Loan EMI Calculator:
This personal loan is given for home renovation, marriage, and personal needs.
Car Loan EMI Calculator:
If you are planning to buy a new car, you can use the car loan scheme. If the borrower fails to repay the loan, the lender will return the vehicle.
Property Loan EMI Calculator:
This type of loan can be obtained by mortgaging the property. When repaying this, you can use this type of EMI calculator to estimate the EMI and pay it back.
7. How Is An EMI Calculated?