Loan Repayment Calculator is an online calculation tool, which helps a person to determine the amount of time left with a given rate of interest to pay his/her complete loan if consistently, paying monthly payments on any ongoing loan.
The rate of interest which is used in loan repayment calculator is the interest rate which is reducing monthly.
Some important Loan terms are explained as follows to help you understand repayment schedule:
1. Loan amount
The total amount of the loan borrowed from the bank or NBFC.
2. Interest rate
It is often called an annual percentage rate (APR). The interest rate is the specific percentage of the amount charged for line or loan of credit.
3. Monthly payment
EMIs based on Monthly principal and interest payment (PI) for the loan or line of credit.
4. Term in months
The total number of months one took the loan for.
5. Payment options available:
- Fixed loan term: Traditionally a fixed monthly payment is charged from the borrower. Monthly payment calculated results a zero balance at the end of the loan's period.
- 1%, 1.5% or 2% of balance: When a person's minimum payment is calculated as a percentage of the outstanding principal balance it comes under this category. Here, his/her minimum payment will change each month, and if he/she only makes the minimum payment his balance will not be zero at the end of his loan's period.
- 100% of interest owed: For those paying interest owed, one's payment is 100% of the interest accrued during the month but no principal. His/her payment may not be fixed if the interest rate or principal balance changes.
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