## Calculation formula description

EMI is calculated keeping the factors in mind

- Loan Amount – P
- Interest Rate – r (per month)

where, r (per month) = R (rate of interest per annum)/(12*100) - Repayment period – t (months)
- Course Duration – d (months)
- Moratorium Period – m (months)
- Interest paid during the course and moratorium period – P1 (if any)

P1 = P.r.(d+m)- CASE (A): When borrower pays whole amount of interest (P1) ,Total Principal – P2

P2=P+P1 - CASE (B) : When the borrower pays a part of P1, Total Principal – P3

P3 = P + (remaining unpaid part of P1)

- CASE (A): When borrower pays whole amount of interest (P1) ,Total Principal – P2
- Formula for calculation of EMI

EMI=P .r . (1+r)^t/((1+r)^t-1)

Where, MonthlyInterestPayment=P.r= P1/((d+m) )

- The borrower pays no interest during the course and moratorium period, then P = loan amount
- The borrower pays the whole amount of interest during the course and moratorium period,then P = P2
- The borrower pays a part of interest during the course and moratorium period, then P = P3