What is EMI?
Equated Monthly Installment – EMI for short – is the amount payable every month to the bank or any other financial institution until the loan amount is fully paid off. It consists of the interest on the loan as well as part of the principal amount to be repaid. The sum of the principal amount and interest is divided by the tenure, i.e., several months, in which the loan has to be repaid. This amount has to be paid monthly. The interest component of the EMI would be larger during the initial months and gradually reduce with each payment. The exact percentage allocated towards payment of the principal depends on the interest rate. Even though your monthly EMI payment won’t change, the proportion of principal and interest components will change with time. With each successive payment, you’ll pay more towards the principal and less in interest.
Types Of EMI Calculator
There are numerous types of EMI Calculators that you can use on Groww to calculate your equated monthly installments for home loans, personal loans, car loans, etc.
1. Home Loan EMI Calculator
Home loans usually have a huge loan principal amount and a long tenure. It requires strategic planning for its repayment. You can use the Home Loan EMI Calculator of Groww to calculate your EMI. It is a user-friendly calculator that can help you calculate and assess your home loan EMIs immediately. All you need to do is enter your loan amount, loan tenure, and rate of interest and the results will be calculated instantly.
2. Car Loan EMI Calculator
Buying a car is one of the major investments one can make. You may require a car loan to fund this substantial investment. Often, a car loan’s EMI is supposed to be repaid with due interest within a stipulated time to the lender. On failure, your car may be taken away and put up for auction to recover the balance amount left to be paid. Thus, to calculate a precise EMI amount that you can afford to pay comfortably, you can use the Car Loan EMI Calculator of Groww. You just need to enter your loan amount, interest rate, and loan tenure, and you will get the monthly EMI amount instantly.
3. Personal Loan EMI Calculator
Personal loans are mostly taken to serve multiple purposes like medical emergencies, vacations, relocation, weddings, home renovation, etc. Since they are an unsecured loan, they have a relatively higher interest rate and a shorter tenure. You can use the Personal Loan EMI Calculator of Groww to assess the loan and EMI amount that you can pay with ease. By entering your loan amount, rate of interest, and loan tenure, you can calculate your EMI.
How to Use the ClearTax EMI Loan Calculator?
The ClearTax EMI Calculator is an easy-to-use tool.
- Visit the ClearTaxInvest page and pick the EMI Calculator from the option of financial tools.
- You will be asked to input the following details: The principal amount, the rate of interest, and the tenure.
- Once you enter the three components, the EMI calculator will generate the EMI amount you must pay.
- You may try different parameters as well to find an EMI option that best suits your financial goals.
How to Choose the Right Way for Calculator
- User-Friendly Interface: The calculator should be easy to use with a clear input and output mechanism.
- Detailed Breakdown: A good EMI calculator provides a breakdown of the principal and interest components of each EMI.
- Additional Features: Some calculators offer features like graphical representations, prepayment options, and amortization schedules.
