How Does Plot Loan EMI Calculator Works
Plot loan orateme loan is both the same, except for the fact that home loan is taken for a complete project or under-construction project, whereas plot loan is made to buy a piece of land that can later be used for residential or industrial purposes. A home loan or plot loan is taken in a large amount for a longer tenure, and a specific rate of interest is levied on the loan. So, a well-equipped plot loan EMI calculator is a must that will clarify your doubts within seconds.
The Plot loan EMI calculator consists of three sliders, namely, Loan amount, Loan tenure, and rate of interest. Once you end up filling the details, the calculator will provide you with how much EMI you need to pay to the bank to repay the loan.
How does a Plot Loan EMI calculator work?
An EMI calculator is a convenient and accessible tool that helps to calculate monthly installments payable to the bank for each month.
To calculate EMI levied on the loan amount, you need to move the sliders and regulate the values such as Principal amount, rate of interest, and time duration.
Let us discuss these three terms:
Principal Loan Amount- It is the exact amount you pay to the bank or lender, which depends upon the purpose and requirement of the loan. Higher the amount of the loan higher will be its EMI that you will pay for the loan taken.
Tenure or Time Duration- Tenure of the loan means that the total time taken to repay the loan should be done every month. The time duration of repayment is always calculated in months and not in years.
Rate of Interest- The rate at which interest is applied to the principal amount. Rate of interest has direct relevance on the EMI; hence, it is essential to compare interest rates before you opt for a home or plot loan.
Plot or Home Loan EMI Calculation Formula:
You can easily calculate EMI amount by the help of mathematical formula given below:
Amount of EMI= [PxRx(1+R)^N] or [(1+R)^N-1]
Where P, N and R are the variables that means the value of the EMI will change every time if any of three variable changes. P is the principal amount, N is the number of years, and R stands for rate of interest.
Follow these simple steps to calculate your Home or Plot loan EMI:
- Move the slider to select the loan amount
- Select the tenure of the loan in Months.
- Use the slider to choose interest rates.
- EMI will get reflected in your calculator
- By changing input sliders, you can also recalculate the EMI anytime.
- EMI will instantly be calculated by moving the sliders.
Benefits of using Home or Plot loan calculator:
Plot loan or home loan EMI calculator is a comprehensive tool that provides a calculation of EMI without any hassles, where you need to put three values.
As per the benefits, you become fully aware of the loan amount that will be assumed, tenure of the loan, and the overall interest payable. In this way, you can easily plan your budget before.
Secondly, you can pre-plan your financial stability to repay the initial amount of loan and EMI payment every month, which is again a challenging task in itself.
Therefore, to soothe all your problems regarding plot or home loan and to arrange the flow of cash in time EMI calculator works best for you, which is offered by many financial systems online.