SBI EMI CALCULATOR

SBI EMI CALCULATOR: Below we provide tools for Online EMI calculations.

What is meant by EMI?

SBI EMI CALCULATOR: EMI stands for Equated Monthly Installment. It refers to the fixed amount of money that a borrower needs to pay each month to the lender, to repay a loan taken. The EMI amount includes both the principal and interest components of the loan, and is calculated based on the loan amount, interest rate, and tenure of the loan.

EMI is a popular mode of loan repayment as it allows borrowers to spread the repayment of their loan over a fixed period, making it more manageable. EMI payments are typically made on a monthly basis, and the borrower is required to pay the EMI amount until the loan is fully repaid.

EMI is commonly used for various types of loans, such as home loans, car loans, personal loans, etc. By using an EMI calculator, borrowers can estimate their monthly payments and plan their finances accordingly.

EMI Calculator Tool

SBI EMI CALCULATOR: An EMI (Equated Monthly Installment) calculator is a tool used to calculate the monthly installment amount that a borrower needs to pay towards a loan. It takes into account the loan amount, interest rate, and tenure of the loan to give an estimate of the monthly installment amount.

To use an EMI calculator, you need to input the loan amount, interest rate, and tenure of the loan. The calculator will then provide you with the monthly installment amount, which includes both principal and interest payments.

EMI calculators are widely available online and are used by borrowers to plan their loan repayment schedules. They can also be used to compare different loan offers from different lenders and help borrowers choose the best loan option for their needs.

How EMI was calculated?

SBI EMI CALCULATOR: EMI is calculated using a formula that takes into account the principal amount, the interest rate, and the loan tenure. The formula used to calculate EMI is as follows:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Where,

P = Principal amount of the loan
R = Rate of interest per month (Annual rate of interest divided by 12)
N = Number of monthly installments

To understand how EMI is calculated, let's take an example. Suppose you have taken a loan of Rs. 1,00,000 at an interest rate of 10% per annum for a tenure of 3 years (36 months). To calculate the EMI for this loan, we need to apply the above formula.

First, we need to calculate the monthly interest rate, which is 10%/12 = 0.00833. Next, we need to calculate the number of monthly installments, which is 36.

Now, we can plug these values into the formula:

EMI = [1,00,000 x 0.00833 x (1+0.00833)^36]/[(1+0.00833)^36-1]

EMI = Rs. 3,221 (approx.)

So, the EMI for a loan of Rs. 1,00,000 at an interest rate of 10% per annum for a tenure of 3 years would be Rs. 3,221 per month. This amount includes both the principal and interest components of the loan.