How is EMI calculated?
EMI (Equated Monthly Instalment) is calculated using the formula: EMI = P × r × (1+r)n / ((1+r)n − 1), where P is the principal, r is the monthly interest rate, and n is tenure in months.
Tips to lower your EMI
- Choose a longer tenure (lower EMI but higher total interest)
- Negotiate a lower interest rate by improving your credit score above 750
- Make a higher down payment to reduce the loan principal
- Use prepayment options whenever you receive bonuses