Daily Installment
Total Interest
Total Amount
Principal vs Interest
Amortization Schedule (Monthly Summary)
To keep the table easy to read, daily payments are aggregated into a monthly summary below.
| Month # | Year | Principal Paid | Interest Paid | Closing Balance |
|---|
What is a Daily EMI Calculator?
A Daily EMI Calculator computes the exact amount you need to pay every day to clear a loan over a given number of days. While most conventional loans demand monthly payments, certain loans target daily wage earners or businesses with high daily cash flows and collect repayments on a daily basis.
Who uses Daily Loan Repayments?
- Small Business Owners: Vendors, shopkeepers, or hawkers who deal in daily cash.
- Micro-finance Institutions: Lenders extending credit to low-income individuals without access to traditional banking.
- Short Term Credit Providers: Digital lenders offering 30 to 90-day cash advances.
How interest is calculated
For daily EMIs, the annual interest rate is divided by 365 to find the daily interest rate. Interest is charged each day on the outstanding balance, and the fixed daily payment shrinks the principal bit by bit every single day. This daily compounding effect means paying daily is slightly cheaper in total interest compared to paying the equivalent monthly sum, because the principal reduces much faster.
Frequently Asked Questions
Do banks offer daily EMI loans?
Typical commercial banks rarely offer daily repayment schedules for standard personal or home loans. However, specialized MSME lenders, micro-finance companies, and regional cooperative banks do offer "daily collection" schemes designed for small merchants.
Is daily compounding bad for the borrower?
Not necessarily. If you pay daily, you reduce the balance every day, meaning tomorrow's interest generates off a smaller base. Over the life of the loan, you actually pay less total interest than an equivalent monthly compounding loan at the same annual rate, provided the rate itself is reasonable.