EMI and its eligibility criteria for a loan
EMI is the loan amount which to is repaid to the lending institution with an interest. The EMI is depended upon the principal borrowed, Rate of interest, Tenure of the loan, Monthly resting period of the loan. The formula to calculate EMI is:

E = P x r x (1+r) ^n/ ((1+r) ^n – 1)

Here,  E=The actual EMI amount that you need to pay monthly.

       P= The actual Principal that you want to borrow.

       r= The rate of interest.

it is given annually, so to convert it into monthly bases to use in a formula. So, divide the yearly R by 12 and then multiply by 100. r = (annual interest/12) x 100.

       n= The duration of the loan in a year.

There is an online tool which is used to calculate named the EMI Loan EMI Calculator. Just enter the amount you want to borrow, the duration of the loan and the interest rates. After that click on the button to know the EMI amount.

The eligibility criteria for applying for a loan:-

1. Age of the applicant.
2. Qualifications of the applicant.
3. Financial Situation.
4. Nature of employment of the applicant.
5. Work experience of the applicant.
6. Credit Rating.
7. Bank details.
8. Salary slips of the current company.

If the above-mentioned eligibility criteria match just apply for the loan you want.
I am Anoop Bansal, a professional Chartered Accountant in Delhi. I have worked for banking firms for the past 10 years. Currently, I work as a writer and a financial consultant for different SMEs in India.

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