It's important to understand the loan product and its calculations to ensure that you have taken the right decision. In this era of online banking, making financial decisions have not only become easier but also the banking process has become unambiguous and painless. To make the process of borrowing loan more convenient for customers, the insurance providers, banks, and third-party financial websites provide a dynamic tool on their portal, i.e., the loan EMI calculator. The EMI calculator offers the in-depth assistance about the economic facets involved in a two-wheeler loan.
It is an online tool which has been designed to calculate the EMI amount which the borrower needs to give for loan repayment. In this tool, one needs to fill out the financial details to get the required information. After the necessary information is entered, the calculator will tell you an estimated amount of EMI.
The Loan EMI calculator shows the amortization table which gives the month-wise breakup of the principal and interest charges, based on which the EMI amount is calculated.
Choose the EMI calculator on any bank's website.
Select the loan amount by merely dragging your cursor on the calculator and key in the interest rate charged by the lender.
In this step, select the tenure for repaying the loan.
Specify about the payment tenure in the next level.
Finally, click on the 'Calculate' button.
Within some time, you will be able to see the EMI amount. Enter different details to compare multiple results. EMI calculator will also give proper information about the amortization (debt repayment schedule).
The calculation is illustrated below with an exemplary table:
|Loan amount (Rs.)||Rate of Interest||Processing Fee (%)||EMI for Two yrs(Rs.)||EMI for Three yrs (Rs.)||EMI for 4 yrs (Rs.)||EMI for 5 yrs(Rs.)||EMI for 6 yrs (Rs.)||EMI for 7 yrs (Rs.)|
There are many benefits of using an EMI calculator.
1.Calculates the EMI value: The principal use of the tool is to know the precise amount the borrower needs to pay after taking the loan, which helps in sorting out the monthly budget. It ensures accurate results and eliminates the need for manual calculations.
2. Assist in deciding the tenure: It becomes a lot easier to determine the mandate of the loan after getting an estimated EMI amount. In case you feel that the amount is a financial burden, increasing the tenure proportionately can reduce the cost.
3. Aids in comparison: Compare the costs of different banks using the tool to decide the best offer.
4. Assists in negotiating: Once you are well known about the basics of the financials involved, it will help you in negotiating critical terms on different components of the two-wheeler loan with the bank.
5. Provides a cost break-up: EMI Calculator not only provides the exact EMI value but also give useful information on different monetary aspects such as the breakup of the charges, interest rate, and processing fee included in the loan amount.
|Bank Particulars||EMI (Lowest in Rs.)||The lowest rate of interest (p.a.)||Mandate|
|SBI Bank||551||11.60%||Five yrs|
|HDFC Bank||514||8.61%||Five yrs|
|Andhra Bank||535||10.35%||Five yrs|
|UCO Bank||554||11.85%||Five yrs|
|Allahabad Bank||552||11.70%||Five yrs|
|Bank of India||518||8.90%||Five yrs|
|Lakshmi Vilas Bank||559||12.25%||Five yrs|
|Nainital Bank||1,143||9.05%||Two yrs|
|City Union Bank||588||14.50%||Five yrs|
|Corporation Bank||559||12.25%||Five yrs|
|Saurashtra Gramin Bank||595||15%||Five yrs|
|Syndicate Bank||538||10.55%||Five yrs|
|Punjab & Sind Bank||536||10.40%||Five yrs|
|Central Bank of India||515||8.70%||Five yrs|
Note: The processing fee and prepayment fee is not included in the computation.