Calculators

EMI Calculator For Home, Car and Personal Loans

Loan Summary

Monthly EMI ₹0
Total Interest ₹0
Total Payment ₹0
Loan End Date –

Payment Breakdown

Principal: ₹0
Interest: ₹0

Amortization Schedule

Period Payment Date EMI Principal Interest Balance Paid To Date

What is an EMI?

An EMI (Equated Monthly Installment) Loan is a type of loan where you borrow money from a bank or lender and repay it in fixed monthly payments over a set period. Each EMI includes a portion of the principal amount (the borrowed money) and the interest (the cost of borrowing).

Types of EMI Loans

  1. Personal Loans – Unsecured loans for personal needs like weddings, travel, or emergencies.
  2. Home Loans – Long-term loans for buying or building a house (secured against the property).
  3. Car Loans – Loans to buy a vehicle (secured against the car).
  4. Education Loans – For funding studies (may have flexible repayment options).
  5. Gold Loans – Loans taken against gold jewelry (secured loan).
  6. Business Loans – For business expansion or working capital needs.

Key Terms to Know

  • Principal (P) – The original loan amount borrowed.
  • Interest Rate (R) – The cost of borrowing, usually a percentage per year.
  • Loan Tenure (N) – The repayment period (in months/years).
  • EMI Amount – Fixed monthly payment (Principal + Interest).
  • Prepayment – Paying off the loan early (may have charges).
  • Foreclosure – Closing the loan before tenure ends.

How Does EMI Work?

EMI is calculated using a formula:

EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]

  • Example:
    • Loan Amount (P) = ₹1,00,000
    • Interest Rate (R) = 10% per year (0.83% monthly)
    • Tenure (N) = 12 months
    EMI = ₹8,792 per month (fixed for 12 months)
  • Early EMI Payments: Initially, more interest is paid; later, more principal is repaid.
  • Missed EMI: Late fees or credit score damage.

FAQs

What’s no-cost EMI?

No-Cost EMI is a payment option where you can buy a product in monthly installments without extra interest charges. The seller or bank absorbs the interest cost, so you pay only the product’s price divided equally over months. However, processing fees or GST may still apply. It’s common in smartphones, electronics, and appliances.

What is no swipe EMI?

No Swipe EMI (or Cardless EMI) lets you convert purchases into EMIs without using a credit card. Instead, the loan is approved based on your credit score, and repayments are deducted from your bank account. It’s useful for shoppers who don’t have a credit card but want EMI flexibility. Popular on e-commerce platforms like Amazon, Flipkart, and Bajaj Finserv.