This tool computes the Equated Monthly Installment (EMI) for a loan by considering the principal amount, the annual interest rate, and the loan tenure. This calculation helps both borrowers and lenders understand the fixed monthly payment needed to repay the loan over time.
Key Uses
Personal Loan Planning
Borrowers can quickly determine their monthly payment obligations for loans such as home loans, car loans, or personal loans.
Comparative Analysis
It helps users compare various loan offers by calculating EMIs for different interest rates, tenures, or principal amounts.
Educational Purposes
This tool is also used in academic settings to demonstrate how loans work, explaining concepts such as amortization, interest calculations, and the time value of money.