An EMI, or “Equated Monthly Instalment”, is a monthly amount you owe your bank in the event that you take a loan of a particular amount for a given period of time. The calculation of your EMI relies on three factors, which are:
- The loan amount – which refers to the total amount you’ve borrowed,
- The rate of interest on the loan – which refers to the current rate of interest being levied on the loan amount, and
- The tenure of the loan – the time period over which the loan amount needs to be repaid.
Many people opt for a loan owing to the ease of access it offers. You no longer have to wait for a home revamp, or a vacation to the place of your dreams – it can all be taken care of with a quick, hassle-free personal loan.
Another purchase for which many people opt for a loan is buying a car. With Yes Bank’s car loan EMI calculator, you can now find out your EMI amount, before you even take the loan.
The way the car loan calculator works is very simple, and relies on the same three factors as listed above.
How to use the Calculator:
- Select your loan amount. For instance, INR 15,00,000.
- Interest rate selection. This is automated, and will be applied as the current rate of interest on the loan.
- Select the tenure of your loan. The EMI value decreases as the time period increases, and based on the selected time period, the EMI Calculator will calculate the EMIs applicable for different periods of time. The shorter the time period, the higher the EMI, and vice versa.
Once you’ve entered all the details, you’ll have a definite figure to consider as an EMI payment each month.