Tractor Loan EMI: How Is It Calculated?

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