# How EMI calculated in bank loan?

let the amount be 100000INR
Interest rate be 12 percent
Tenure periode be 1 year.
Plz calculate EMI.Also give the formula.
Helo ,what is 0.6 in ur answer?

How EMI calculated in bank loan?

## 4 Replies to “How EMI calculated in bank loan?”

1. chenna says:

100000 x 12% = 12000 x0.6 = 7200
100000 + 7200 = 107200/12 = 8935 Approximately
When you pay the EMIs regularly the last EMI will be less and in a diminishing manner

2. charlatan says:

let us make calculations simpler.
loan amount = 12000
tenure = 1 year = 12 emi
rate of interest = 12% = 1% per month
month of borrowing = dec.
1 emi due in jan
2 emi due in feb
12 emi due in dec.
in jan 12000/12(=1000) +120 =1120
in feb 12000/12(=1000) +110 =1110
in feb 12000/12(=1000) +10 =1010
so total interest =120+110+100+90 …..10 = 780
which means 12000+780 = 12780 need to be paid to close the loan account.
120780/12 = 1065 is the EMI

3. RAJEENDRAN V says:

In most loans interest is calculated on a daily basis and posted monthly. For Rs.100000/- @12% for one year–
100000X12% =100000X.12=12000
Principal + Interest=112000/-
If your tenure of loan is 12 months EMI=112000/12=9333.33=9334/-appx
In this example it is assumed that there are no charges like processing charge, closing charge, charges for notice to the loaned etc.Interest is calculated annually.
To calculate on monthly basis use the formula A= P(1+r/100)raised to n times
—————-
n

A= the total principal + interest at the end of n years and r is the rate of interest.

4. Naresh says:

EMI =( AMOUNT {1+R/100}T) / NO.OF EMI

= (100000{1+12/100} / 12

= 112000/12

= 9333.33 INR