What is EMI, how to do EMI, complete information If you have taken a loan through a bank or credit card or are thinking of taking it, then you should know the complete information about the calculation of EMI here? When you take a loan from the bank, the bank takes money from you only through EMI and now you can buy any item through EMI in online shopping sites like Amazon and Flipkart, so the question arises that what is this EMI? It happens and how it works, if you do not even know, then today we are going to tell you in detail about this topic.
What is EMI?
Its full form is Equated Monthly Installment which if converted in Hindi language, then it is Equated Monthly Installments i.e. Equated Monthly Installments which are paid on repayment of any loan or purchase of goods, we call it EMI. Today everyone needs a loan, in the loan, you get the full amount at once, but when you have to repay the loan, you cannot repay the entire amount, so to make it easy, the bank gives you the option of EMI. Let us tell you that when you pay EMI i.e. monthly installment, it includes an interest in addition to your principal amount i.e. interest in your monthly installment. Rupees are also added.
How to do EMI?
You must have come to know that the monthly installment is called EMI, now you also want to know how EMI works, then tell you that the loan you took is divided according to the tenure, along with the entire loan amount. The interest in the amount is also divided according to the period and it is added to the monthly installment. For example, if a person has taken a loan of Rs 1 lakh for one year i.e. 12 months and the bank is taking 10% interest in it, then your one-month installment will be Rs 8792. In this installment, the principal amount of Rs 8333 will remain, while the interest of Rs 458 has been added to it. You can visit the website emicalculator.net to calculate EMI online.
EMI Payment Methods
There are mainly two ways to pay the monthly installment i.e. EMI, in which the first is online and the second is offline. In the online method of EMI payment, you can do it with your credit card or debit card, for you have to go to the bank’s website and enter your credit or debit card number there, money will be deducted from your account as a monthly installment. Whereas in the offline method, you have to go to the bank and pay in cash.
From some of the things mentioned above, now you must have come to know what is EMI and how to do EMI. After this, you are told what will be the monthly installment or EMI. One such website is emicalculator.net on which you can calculate EMI.