login-icon
mahindra-finance-logo
login-icon
  • English
  • Hindi
  • Bengali
  • Marathi
  • Telugu
  • Tamil
  • Gujarati
  • Kannada
  • Odia
  • Malayalam
  • Punjabi
|

Tractor Loan EMI: How Is It Calculated?

mahindra-finance-author

by Mahindra Finance

|

October 12, 2023

|

1 mins read

To calculate your Tractor Loan EMI manually, you can use this formula:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

  • P represents the loan amount.
  • R is the monthly interest rate (annual interest rate divided by 12).
  • N denotes the loan tenure in months.
For instance, if you take a loan of ₹5 lakhs to buy a tractor at an interest rate of 10% per annum for a tenure of 5 years. The EMI for this loan would be calculated as follows:

EMI = [500000 * 0.00833 * (1 + 0.00833)^60] / [(1 + 0.00833)^60 – 1]

EMI = ₹10,833.33

This means that you would need to pay ₹10,833.33 every month for 5 years to repay the loan

Related articles

Maruti-Suzuki-Grand-Vitara-Waiting-Period

Maruti Suzuki Grand Vitara Waiting Period

Introduction Planning to purchase a car is an exciting time, and if you have your sights set on the Maruti Suzuki Grand Vitara, you’re in for a treat. However, before you drive away with your dr...

KNOW MORE

June 19, 2024

Understanding The Letter Of Credit: A Guide To Smooth International Trade

Introduction If you’ve ever wondered how businesses navigate the complexities of international trade and ensure secure transactions, then you’ve come to the right place. In this guide, we ...

KNOW MORE

April 22, 2024

Offline-vs-online-business-loan-Which-one-to-choose

Offline Vs Online Business Loan: Which One To Choose

When it comes to securing a business loan, convenience and efficiency are important. That’s where online business loans come in handy. They offer a quick and easy way to borrow money without the...

KNOW MORE

June 17, 2024