Use our online loan EMI calculator to estimate your monthly EMI amount, total interest paid, and overall loan repayment amount effortlessly.
Monthly EMI:
Principal Amount:
Total Amount:
Interest Amount:
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EMI, or Equated Monthly Instalment, is the fixed monthly payment you make towards repaying a loan taken from a bank or financial institution. This payment includes both the principal loan amount and the interest. In essence, EMI = Principal Amount + Interest on the loan. Typically, the EMI remains constant throughout the loan tenure, and you repay it monthly. Our loan EMI calculator simplifies the process by helping you determine your monthly EMI amount.
To use the EMI calculator, simply enter the total loan amount, the rate of interest, and the loan tenure in years. The calculator will automatically compute the total amount paid and the monthly EMI. The EMI formula is:
EMI= P x R x (1+R)^N / [(1+R)^N-1] where,
These variables, along with any processing fees, are necessary to determine your EMI.
For example, if you take a loan of Rs 6,00,000 at an interest rate of 10% per annum and the loan tenure is 5 years, your EMI will be calculated as follows (assuming a 1% processing fee):
Then apply the EMI formula: EMI=600000×0.00833×(1+0.00833)60(1+0.00833)60−1
Simplifying this:
EMI=600000×0.00833×1.608440.60844
EMI≈12,749
Therefore, your monthly EMI will be approximately Rs. 12,749.
Why Recurring Deposit is useful?
1. Loan Collateral: RDs can serve as collateral for loans, allowing borrowers to obtain 80-90% of the RD amount as a loan.
2. Premature Withdrawals: RDs permit premature withdrawals, although a small penalty may apply.
3. Higher Interest for Seniors: Senior citizens often enjoy a higher interest rate (usually 0.5% more) on RD schemes.
4. Minor Accounts: Minors can open RD accounts under parental supervision.
5. Flexible Tenure: RDs offer flexibility in tenure, ranging from 7 days to 10 years to suit individual preferences.
6. Regular Savings: RDs facilitate regular savings, with minimum deposit amounts as low as ₹10.
Tax Benefits on Recurring Deposits (RD)
Like other investment instruments, RDs attract taxes. A TDS of 10% is deducted on RD returns exceeding Rs. 10,000 in a financial year. Comparatively, Systematic Investment Plans (SIPs) can be more beneficial in the long term, especially those investing in Equity Linked Mutual Funds (ELSS), as long-term gains from equity are tax-free after one year.