The credit market in India is steadily on the rise and is currently the 4th largest credit industry in the world, recording a CAGR of over 11% year-on-year. A major portion of this growth comes from short-term credit products such as personal loans and credit cards, which together account for nearly 78% of total credit lending.
Since loan repayments are made through Equated Monthly Installments (EMIs), borrowers must calculate their EMI in advance to plan their present and future finances efficiently.
There are several EMI calculators available online. Choosing an accurate calculator and understanding its usage helps you determine the exact EMI amount you are liable to pay.
Before applying for a loan, it is important to evaluate your financial capacity and repayment ability. The following factors directly impact your EMI:
The number of credit accounts in India is growing rapidly, recording a CAGR of 28% and crossing 100+ million accounts. Whether you opt for a secured or unsecured loan, knowing your EMI beforehand is essential.
The standard formula used to calculate EMI is:
This is a standardized formula used by most online loan calculators. Additional variables may apply depending on the type of loan.
Home loans generally involve high principal amounts and long tenures. Proper EMI calculation helps in long-term repayment planning.
A car loan funds your vehicle purchase. Calculating EMI in advance ensures you can comfortably repay the loan without financial stress.
Personal loans are unsecured loans used for emergencies, weddings, travel, relocation, or renovation. EMI calculation helps manage higher interest rates effectively.
Education loans help finance studies in India or abroad. EMI repayment usually starts after a moratorium period, making pre-calculation essential.
A secured loan taken against residential or commercial property. EMI calculation ensures repayment without financial strain.