How EMI Calculation Works?
Home Loan
Usually long tenure (15-30 years) with interest rates between 8.5% to 9.5%.
Car Loan
Medium tenure (3-7 years) with interest rates between 9% to 12%.
Personal Loan
Short tenure (1-5 years) but higher interest rates (11% to 16%).
EMI Formula Explained
Equated Monthly Installment (EMI) calculates the fixed amount you pay every month.
E = P x R x (1+R)^N / [(1+R)^N-1]- P: Principal Loan Amount
- R: Monthly Interest Rate (Annual Rate / 12 / 100)
- N: Loan Tenure in Months