Managing finances is a critical part of everyone's life and one of the most significant financial decisions that people make is taking out a loan. If you're planning on taking out a loan, it's essential to understand the total cost of borrowing. Shriram Finance EMI calculators are available online and they are designed to help you calculate your monthly payments accurately for various loan products such as bike loans, gold loans, business loans, personal loans and so on. In this article, we will discuss everything you need to know about EMI calculators, including how they work and how they can help you make informed financial decisions.
What is an EMI Calculator?
An EMI (Equated Monthly Instalment) calculator is a tool used to calculate the monthly payment amount that a borrower has to make towards a loan. It is commonly used to calculate the repayment amount for home loans, personal loans, car loans and other types of loans.
The EMI calculator takes into account the loan amount, interest rate and loan tenure to calculate the monthly instalment amount. This helps borrowers to plan their finances better and choose the loan amount and tenure that suits their budget. They are easy to use and provide accurate results, helping borrowers make informed decisions about their loan repayments.
- An EMI (Equated Monthly Instalment) calculator is a tool used to calculate the monthly payment amount that a borrower has to make towards a loan.
- A higher interest rate results in a higher EMI amount, while a lower interest rate results in a lower EMI amount.
- The EMI calculator provides accurate results, eliminating the possibility of errors in manual calculations.
- A user-friendly tool that does not require any special skills or knowledge to operate.
Key Highlights
|
What are the factors that affect Shriram Finance Loan EMI calculation?
Several factors that affect Shriram Finance EMI calculation, including:
Loan amount: The EMI amount varies with the loan amount. A higher loan amount results in a higher EMI amount.
Loan tenure: A longer loan tenure results in a lower EMI amount, while a shorter loan tenure results in a higher EMI amount.
Interest rate: A higher interest rate results in a higher EMI amount, while a lower interest rate results in a lower EMI amount.
Prepayment: If you choose to make prepayments towards your loan, it can impact the EMI amount. Prepayments can reduce the outstanding loan amount, which can result in a lower EMI amount.
How to Use Shriram Finance Loan EMI Calculator?
Using the Shriram Finance Loan EMI calculator is a simple and easy process. Follow these steps to calculate your EMI:
Step 1: Visit the Shriram Finance website and navigate to the EMI calculator page.
Step 2: Enter the loan amount you wish to borrow in the "Loan Amount" field.
Step 3: Enter the loan tenure in years or months in the "Tenure" field.
Step 4: Enter the applicable interest rate in the "Interest Rate" field.
Step 5: Click on the "Calculate" button.
Once you click on the "Calculate" button, the EMI calculator will display the monthly EMI amount you need to pay towards your loan repayment.
Understanding EMI Calculation
To understand how to calculate your Equated Monthly Instalment (EMI) for a loan, let’s consider an example:
Imagine you take out a loan of ₹1,00,000 at an interest rate of 10% per annum for a period of 2 years (or 24 months).
Convert the Interest Rate:
First, convert the annual interest rate to a monthly rate. In this case, divide the annual rate by 12. So, 10% per annum becomes approximately 0.83% per month.
Calculate Monthly EMI:
To find out how much you will pay each month, you can use the following steps:
- Multiply the loan amount by the monthly interest rate.
- Then, factor in the total number of payments (months).
- Finally, adjust for the total amount paid over the loan term.
For our example, after performing the necessary calculations, you would find that your monthly EMI is approximately ₹4,504.85.
Therefore, the monthly EMI for the loan is ₹4,504.85.
Also read: Why It's Easier to Succeed with a Business Loan Than You Might Think?
What are the benefits of using a Loan EMI calculator?
Using the Shriram Finance Loan EMI calculator comes with several benefits, including:
Accurate results: The EMI calculator provides accurate results, eliminating the possibility of errors in manual calculations.
Saves time: EMI calculator calculates the monthly instalment within seconds, saving time and effort.
Helps in financial planning: It helps borrowers plan their finances better by providing a clear understanding of the monthly loan repayment amount.
Easy to use: A user-friendly tool that does not require any special skills or knowledge to operate.
The Bottom Line
In today's world, taking out a loan is a common practice. But, with so many loan options available, it can be overwhelming to choose the right one. Fortunately, EMI calculators are here to help. By using an EMI calculator, you can compare different loan options and find the one that best fits your financial situation. This tool can help you make informed decisions and avoid costly mistakes, making it an essential tool for anyone looking to take out a loan. Check Shriram Finance Website to explore various loan options that suits your requirement.
