Understanding the Growing Credit Market in India and the Importance of EMI Calculators

India’s credit market is witnessing remarkable growth, solidifying its position as the fourth-largest credit industry globally. With a compound annual growth rate (CAGR) exceeding 11%, the demand for credit products is on a steady rise. A significant portion of these advances comes from short-term credit instruments, particularly personal loans and credit cards, which together constitute 78% of total lending in the country.

Why Use an EMI Calculator?

The credit market in India is expanding rapidly, with the number of credit accounts growing at an impressive CAGR of 28%, reaching 107 million accounts by the end of FY18. With such rapid expansion, it becomes even more important for borrowers to calculate their EMIs accurately before availing of a loan.

Factors Affecting EMI Amount

• Loan Tenure: A longer tenure reduces the EMI amount, while a shorter tenure increases it.
• Interest Rate: The rate of interest significantly impacts EMIs. Lower rates help reduce total repayment costs.
• Loan Amount: Higher loan amounts naturally lead to higher EMIs. Borrowers must assess their financial capacity.

How EMI Calculators Help Borrowers

• Provides accurate EMI calculations for better financial planning.
• Saves time by eliminating manual calculations.
• Ensures error-free results.
• Customized calculations for different types of loans.

Standard Formula for EMI Calculation

EMI = [P x R x (1+R) ^N] / [(1+R) ^ (N-1)]

Where:
P = Principal loan amount
R = Monthly interest rate
N = Loan tenure (in months)

Types of EMI Calculators

• Home Loan EMI Calculator: Helps plan repayments for large home loans.
• Car Loan EMI Calculator: Assists in determining affordable car loan EMIs.
• Personal Loan EMI Calculator: Helps manage higher interest and shorter tenure personal loans.
• Education Loan EMI Calculator: Useful for planning education loan repayments.
• Loan Against Property EMI Calculator: Helps determine EMIs for property-backed loans.

How to Use an EMI Calculator?

Using an EMI calculator is simple:

1. Enter the loan amount, interest rate, and tenure.
2. View the instantly computed EMI amount.

Advantages of Infinite Interests’ EMI Calculator

• Free to use: Unlimited access anytime.
• 100% Accurate: Ensures precise calculations.
• Fast & Reliable: Generates instant results.

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