EMI Calculator

What are the benefits to opting for EMI’s in a loan?

If anytime there is a requirement for finances, you can always apply for a loan. However, at the same time, you will be required to pay back the borrowed funds, along with an added interest. This can be done through equated monthly installments.

Also known as EMI, it is a fixed amount a borrower will pay to repay the loan. This amount is paid at a particular date until the loan tenure is met. This EMI’s comprises of an amount that includes the interest as well as the principal amount. You can even use the EMI calculator to get the required amount that will suit your needs while repaying the loan.

As mentioned previously, EMI’s will be made every month as part of the repayment process of a loan. This EMI amount constitutes of a principal amount along with a certain rate of interest. This rate of interest depends on the amount that is borrowed, the tenure of the amount and the lender. Throughout this tenure, the principal component is less than the interest component, especially in the initial period of repayment. Over the tenure, the rate of the interest will decrease gradually whereas the principal amount will increase.


EMI is fixed payments made every month as a part of loan repayment or a purchase. EMI constitutes of the principal amount to be paid and a certain rate of interest. The rate of interest depends on the amount borrowed, the duration for which it is borrowed and the lender. The principal component is lesser than the interest component in the initial period of repayment and the rate of interest will decrease gradually and the principal amount will increase over the period of repayment. But how can you benefit from this form of repayment?

In reality, EMI’s are a convenience to those who depend on a steady source of income, especially if they are capable of paying a fixed amount. This makes it easier in terms of affordability, as it provides a choice of purchase for many items that require a lump sum payment. Additionally, it also provides a means of flexibility. Through this form of payment, you can easily decide the amount you will need to pay in installments especially with the assistance of EMI calculator. Keeping in mind your financial situation and income; you can easily calculate the amount that will suit your requirements. Additionally, EMI’s are completely easy on your finances, as it allows you to make minimal payments every month rather than large amounts which are not affordable. One of the best parts of EMI’s is that you need not submit it through a middleman or any intermediate sources. The amount gets deducted directly from your account on the required date.