For example, if rate of interest is 6.9% p.a. then r = 6.9/12/100 = 0.006
If a person avails a loan of ₹10,00,000 at an annual interest rate of 6.9% for a tenure of 120 months (10 years), then his EMI will be calculated as under:
EMI= ₹10,00,000 * 0.006 * (1 + 0.006)120 / ((1 + 0.006)120 - 1) = ₹11,559.
The total amount payable will be ₹11,559 * 120 = ₹13,87,080. Principal loan amount is ₹10,00,000 and the Interest amount will be ₹3,87,080
Calculating the EMI manually using the formula can be tedious.
GrowMudra’s EMI Calculator can help you calculate your loan EMI with ease.
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