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Loan EMI Calculator I Conveniently calculate EMI Payments For Your Loan - SCUF

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Get easy and quick calculation of EMI with Shriram City’s Online Loan EMI Calculator

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Our loan EMI calculator lets you calculate your EMI, interest and total amount payable. Now
plan your finances in a more organized way.

Main Content
Overview

Be it a home, a car or a vacation, buying it is a dream for millions. Calculating the loan and expenses
with the help of an EMI calculator helps you turn your dream into reality. EMI facility makes your loan
repayments more comfortable.

Equated Monthly Instalments (EMI) are monthly payments you pay back for the loans you have
borrowed from the lenders. EMI is the calculation of the principal amount of the loan and the rate of
interest.

EMI = principal amount + interest

EMI amount is usually fixed until the end of the repayment tenure of your loan, which is paid monthly.
The EMIs may be calculated using a calculator for loan EMI for the different products you wish to
buy. Lenders have made it easy for the customers by creating an EMI calculator online available on
their websites.

Calculation
A calculator for EMI helps you in calculating:
● Total interest payable
● Total payment (principal + interest)
● Loan EMI (per month)
The EMI for a loan agreement is computed based on the number of days to the due date.

Benefits
● An online tool which is easy to access
● Aids you in financial planning
● Delivers instant results
● Helps you determine monthly EMIs
● Easy accessibility
● Saves energy and time of performing manual calculations
How to Calculate EMI using EMI Calculator?
The calculator does every calculation for you. You have to provide the details like loan
amount, duration, the rate of interest along with the processing fee, and the calculator will
display the answers within a fraction of a second.

Formula
EMI = P x r x (1+r)^n/((1+r)^n – 1)
EMI is identified as the monthly instalment to pay every month
P is the loan amount.
R is the rate of interest, calculated every month instead of the annual rate of interest. It is
achieved with the formula r = (annual interest/12) x 100.
N is the duration of the loan.
The formula mentioned above is the most basic one derived by most of the lenders.
However, some include the processing fee as well in the monthly instalments. The
processing fee will range from 1 to 3 per cent, but it differs according to the lender.

EMI Calculation Formula in Excel

EMIs can also be calculated in Excel sheet with the following formula:
EMI = (P X R/12) X [(1+R/12) ^N] / [(1+R/12) ^N-1]
But there is a disadvantage since you have to enter the numbers accurately so that the
answer is perfect. Failing to enter the accurate numbers will result in miscalculation. In an
online calculator for EMI, it will convert the monthly rates on its own along with the
processing fees and prepayment charges.
What Types of Loan EMIs can an EMI calculator compute?
EMI calculator is a great tool to use. It is simple and easy to access. It applies for all types
of loans like Home loans, Gold loans, Business loans and simple interest loans. You just
have to click on the calculate button.

EMI Calculation for Fixed Interest Rate

As the term describes, a fixed rate of interest in a loan is an interest that is fixed throughout the
tenure. When compared to the floating rate of interest, it is relatively higher. It is preferable for
those who don’t want to risk the fluctuation in interests during market inflation. In this case, EMI
will remain the same till the end of the tenure.

EMI Calculation for Floating Interest Rates

Floating rate of interest will change depending on the lending rate of the market. It will increase
when the lending rate rises. It is also known as the variable rate of interest. It is usually lower as
it gives the borrower a risk of increasing the rate during the loan tenure. However, it entirely
depends on the rise of the interest rate, whether you can expect a decrease or increase.

How the loan amount and interest due are paid through EMIs?

Each EMIs contributes to the borrowed amount along with interest. However, the proportion of
the principal amount and interest varies over time. All the lenders follow the same mathematical
formula, and therefore, the offers and repayment schedule are similar.
You also have to know that the initial loan EMIs contribute more towards the interest. And later
during the tenure of the repayment, the principal amount contribution will be more than the
interest, possibly at the end of the term.

How do part prepayments impact your EMIs?

Part prepayments reduce the interest and the principal amount from the outstanding loan
amount to the lender. The loan will be paid faster since the EMIs will remain the same, and the
tenure will reduce as a substantial amount is deposited to the lender.
How to pay Shriram City online EMI payment?

To pay an EMI with ShriramCity online, you have to log in to our website Shriramcity.in and
process your online payment by filling your account details. Our user-friendly website makes
your payments easy.

How to Pay EMI Online through Shriram City Mobile App

To pay your monthly EMIs, you can also download our Shriram City Mobile App (Shricity) for
Android smartphones. You have to enter your account details and log in to the payment mode.
You can then enjoy the benefit of paying your monthly EMIs from wherever you are in just one
click in our Shriram city Union Finance online payment app.

Frequently Asked Questions

How my EMI has to be paid and when it will be due?
The lender will notify your EMI due after the loan gets disbursed to your account. Nowadays as
per the NACH mandate, repayment of EMIs will directly get debited from your bank account.
However, you have to submit post-dated cheques for security purposes.

What happens if the interest rate reduces or increases during the tenure of your loan?
This happens only if your loan is a floating rate loan. During the tenure, a higher amount will be
adjusted towards the principal amount, and it will be repaid sooner if the interest reduces. In the
case of an increase in interest, a greater portion will be adjusted in the interest, and it will impact
the loan tenure, but the EMI will be the same.

What will happen if I partially prepay the loan?

You will repay your loan sooner when you partially prepay the loan if the EMI is not changed.
However, if you reduce the EMIs as you have partially paid the loan amount, your tenure will
remain unchanged.
What happens if you skip your EMI?

The loan tenure will increase if you skip the EMIs due to the insufficient balance or any other
cause. However, you have to remember that missing EMIs will impact your credit score and will
stop you from borrowing any other loans. Hence, make sure you pay the EMIs at the specified
time and withstand your financial well being.

Are calculators more accurate than excel sheets?

The EMI calculator online is a ready-to-use tool, whereas excel is a platform where you have to
program the sheet before using it. It is a tedious task and complicated especially if you’re not
well versed with the software. That’s the reason the majority choose an online EMI calculator.

Is it good to pre-close a loan before the end of its tenure?

Before closing your loans, one key point to note is, making timely payments will improve your
credit score. It will harm your creditworthiness, and the banks will charge a penalty for
prepayments as well. Therefore, opting to prepay the loan, to save interest payments might not
be a great idea.