Factors Influencing Personal Loan EMIs: Understanding the Math Behind Your Payments
Securing a personal loan is often a vital financial decision, and understanding the factors that influence your Equated Monthly Installments (EMIs) is essential for responsible borrowing. While EMIs might seem like a fixed number, they are intricately calculated, taking various factors into account. Let's unravel the math behind your loan payments by exploring the key factors that influence your Personal Loan EMIs.
1. Loan Amount:
The principal amount you borrow significantly impacts your EMIs. A higher loan amount leads to higher EMIs, while borrowing less results in more manageable monthly payments. It's crucial to strike a balance between the loan amount and your repayment capacity to ensure affordable EMIs.
2. Loan Tenure:
The duration for which you borrow, known as the lo...