A Tractor Loan EMI (Equated Monthly Instalment) is the monthly payment you make until your tractor loan is fully repaid. This amount comprises both the principal loan amount and the interest accrued.
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
Using a tractor finance EMI calculator is simple. Just provide three key inputs:
- Loan amount
- Interest rate
- Loan tenure
The calculator will then display your monthly EMI. Feel free to experiment with different loan amounts, interest rates, and tenures to find the most suitable option for your budget