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What is an example of EMI?

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Anonymous

13y ago
Updated: 8/20/2019

Every month installment

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Wiki User

13y ago

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How much emi in car loan of three lacs?

The EMI (Equated Monthly Installment) for a car loan of three lakhs (300,000) depends on the interest rate and loan tenure. For example, at an interest rate of 10% for a 5-year tenure, the EMI would be approximately ₹6,427. You can use an EMI calculator to determine the exact amount based on your specific interest rate and loan duration.


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How to calculate Step Up EMI for a loan.?

A Step-Up emi is a repayment method where your EMI increases every year (or at fixed intervals). It helps you start with a lower EMI and gradually pay more as your income grows. To calculate Step-Up EMI, you normally follow these steps: Start with the base EMI Use the normal EMI formula: EMI=((1+r)n−1)P⋅r⋅(1+r)n​ Where: P = Loan Amount r = Monthly Interest Rate n = Total Months Apply the Step-Up Percentage Decide how much the EMI will increase — for example: 5% increase every year 10% increase every two years ₹2,000 fixed increase every year Recalculate outstanding balance each year After every 12 months: Subtract total EMIs paid Find the new outstanding balance Increase EMI by the step-up rate Continue the same process until the loan closes Simple Example Loan: ₹20,00,000 Tenure: 20 years (240 months) Interest: 9% annually Step-Up: 5% increase every 12 months Year 1: EMI = ₹17,995 Year 2: EMI = ₹17,995 × 1.05 = ₹18,894 Year 3: EMI = ₹18,894 × 1.05 = ₹19,838 …and so on, until loan is completed.


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