You may not enjoy dealing with loans, in fact not a lot of people do. However, there is a strong possibility that you will need to deal with loans at some point. If you have applied for a loan ever before then you know that there a multitude of factors that you need account for. However, you need not worry a lot because you can use EMI calculator to find gain more insights into all the factors related to loan. So, let’s check out the formulae and functions of an EMI calculator:

EMI calculation Formula and Functions

An EMI calculator, as the name suggests, will help you in determining the EMI of a loan. The EMI calculation formula is:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

In the above equation, P stands for the principal amount, R stands for the interest rate per month, and N is the number of monthly instalments. However, if the interest rate is not available in months then all you need to do to calculate the monthly interest rate is:

(Yearly Rate of Interest/12) x 100

However, the easier way is to just to use the calculator, especially if you dislike mathematical calculation.

An EMI calculator can also be a useful tool for learning loan eligibility. Since the calculator requires a lot of information such as tenure of the loan, principal amount, credit rating, your monthly income, etc., it can be used to determine whether you are eligible for the loan or not. It can also help you in deciding whether you will be able to afford the loan or not, even if you are eligible for the loan.

Easy Loans with PaySense

You may think how can a personal loan be tough or difficult? The reason why you can get ‘easy loans’ from PaySense is because you will be able to loan approved in an instant. Additionally, you will not need to wait a long time for the amount to be transferred as well. Moreover, you can accomplish all this from the comfort of your home. Therefore, you avail loans easily and without any stress. So the next time you need a loan, all you need to do is download the PaySense mobile app on your smart phone, check the eligibility, and apply for the loan. If you get stuck somewhere, don’t worry, you can always count on impeccable service to clarify your doubts.