The loan amount calculator is used to determine the maximum loan amount that can be obtained from a bank or other financial institution based on the affordable monthly EMI amount. The loan amount calculator maximizes the loan amount that can be obtained and assists in determining the own contribution requirements and property cost.
What is Loan Amount Calculator?
The loan amount calculator is used to determine the maximum amount that can be borrowed from a bank or financial institution based on your monthly repayment ability. The loan amount is calculated based on your monthly repayment limit, current loan interest rate, and loan repayment period. The loan amount calculator calculates the loan amount using the EMI formula. The loan amount calculator will compute the loan amount under the assumption that the loan interest rate remains constant throughout the loan period. This loan amount calculator allows you to download and print the loan repayment summary and loan repayment schedule.
Purpose of Loan Amount Calculator
The loan amount calculator’s purpose is to determine the maximum loan amount you can borrow from a bank or financial institution based on your monthly earnings or repayment ability. The loan amount calculator calculates the loan amount based on the amount of EMI you are willing to pay monthly. The loan amount calculator’s purpose is to identify and set the maximum loan amount to borrow without exceeding the limit. This calculator compares various loan sources based on the various interest rates available to maximize the loan amount.
Which loans benefit from the Loan Amount Calculator?
If you intend to take out a loan by paying your comfortable monthly repayment limit, this loan amount calculator will assist you in determining the maximum loan amount that you can borrow from a bank or financial institution. This loan calculator can be used for a variety of loans, including a home loan, car loan, personal loan, educational loan, and mortgage loan. These are typically large loans that are repaid in monthly instalments.
What is Loan Amount?
The loan amount is the amount borrowed from a bank or financial institution in exchange for agreeing to repay it with interest in monthly instalments. Following loan approval, the banks will issue the loan amount. Depending on the type of loan you take out, the loan amount can be used for a specific purpose. A personal loan can be used for whatever purpose you want.
How is the Loan Amount Calculated?
The loan amount is calculated using the EMI formula below. This EMI formula is widely used in banks and financial institutions.
E = P X R X ( 1 + R)^N / ( (1 + R)^N – 1 )
OR
. ( 1 + R)^N
E = P X R X ——————-
. ( (1 + R)^N – 1 )
P – The amount borrowed from a bank or financial institution.
R – The loan interest rate expressed as a percentage. If the interest rate is 5.25 percent, the R value is (5.25/12/100). The R is calculated monthly. The annual interest will be divided by 12. By dividing by 100, the percentage will be converted to decimal.
N – The loan period is expressed in months. The N value is 60 months if the loan term is 5 years. (5 * 12 = 60)
E – The monthly repayable fixed amount. EMI – Equated Monthly Installments.
Factors influencing Loan amount
There are various factors which influence the amount of money you borrow. The main factors are your willingness to repay on a monthly basis, the amount of loan interest charged by the bank or financial institution, and the length of the loan repayment period. The other factors are your total expense cost limit and your expense down payment limit.
Monthly Repayable Amount
One of the factors used to calculate the loan amount is the monthly repayment amount. If the monthly repayable amount is large, the loan amount will be higher. If your EMI is lower, you will receive a lower loan amount. The loan amount should be used only for necessary expenses.
Interest Rate on a Loan
The bank or other financial organisation sets the interest rate for loans. The amount of the loan you receive will decrease the higher the interest rate. The EMI payment will also increase. It is best to get the loan from a bank or other financial organisation that provides cheap long-term interest rates. This will raise the limit on loan amounts.
Loan Period
The length of the loan affects the loan amount. As the loan’s term lengthens, the loan amount rises. For loans with a longer period, the loan amount will be larger. To prevent paying too much interest, you should pay a higher EMI amount over a shorter period of time based on your monthly income.
Down Payment Amount
You can borrow a smaller loan amount if you make a down payment on your end. You must take out a loan for the entire amount if you don’t have a down payment. You will end up paying more interest on the loan amount as it rises, which will increase your monthly repayment amount.
Property or Expense Amount
The loan amount will be determined by the cost of the expenses or the property. If the property is less expensive, you will receive a smaller loan. You must request a larger loan amount from the bank if your expenses are greater.