As loans are becoming an integral part in the lives of many it is wise enough to have a clear picture about the EMIs one would need to deal with. Loans are now available for almost everything from a handheld gadget like a phone to a car and a house. The EMI payments include both the principal amount and the interest on the loan amount approved. One can use the loan amortisation schedule, a tabular form of the loan showing the EMI amounts. The EMI of a loan includes the following three factors.
1. The first one is the amount for which one needs to pay the EMI. It is the total amount an individual borrows from a financial institution.
2. The second is the interest rate at which the lender approves the loan. The interest rate greatly affects the calculation of the EMI. A low rate of interest from good financial institutions like shriram city is always thus helpful.
3. The third one is also as crucial as the first two which is the tenure for which one gets the loan. The longer the period the easier it would be if the monthly expenditure is high, as it reduces the monthly amount considerably.
The mathematical formula used to find the EMI is P × r × (1 + r)n/((1 + r)n - 1) where P stands for the loan amount, r is the interest rate, n represents tenure in the number of months. One can find the exact EMI amount with this formula. Apart from this. you can use the online EMI calculators available to find the results quite easily.
For More Information Visit : https://www.shriramcity.in/emi-calculator
