Personal Loan EMI Calculator
Calculate Your Personal Loan EMI with the help of EMI Calculator – Check personal loan monthly emi based at desired loan amount and the repayment period. Here is an easy online tool to calculate loan EMI on the basis of the loan amount, interest rates and tenure.
Personal Loan Quick Apply
If you still don’t know how to calculate your monthly EMI for a personal loan, no more worries now. Yes, because now you don’t have to call the bank to know the entire procedure of your monthly EMI calculation. Moreover, with the help of EMI calculator, it is easy for one and all to calculate his or her EMIs. All you need to do is just know yours.
- Personal Loan Amount
- Personal Loan Interest Rate
- Loan Tenure or Repayment Period
Personal Loan EMI Calculator
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What Is Personal Loan EMI Calculator?
The personal loan EMI calculator is nothing, but a tool which can be used to calculate the monthly instalments that you will pay to undertake your personal loan. With the help of this tool, you can know your monthly EMIs by just entering the few details in the calculator. Yes, you need to enter the loan amount, tenure and interest rate in the calculator so as to effectively calculate your personal loan EMI.
What EMI Stands For?
Equated Monthly Installment or commonly known as EMI is the payable amount that you pay every month to the banks or financial institutions until your entire loan amount is fully paid off. EMI consists of the interest on the loan along with the principal amount to be repaid.
Moreover, the total sum of the principal amount and interest is further divided by the tenure of the loan. Hence, the amount that comes out will be paid monthly.
However, in initial months your interest component of the EMI would be larger, and then it slowly reduces with each payment. Actually, the exact percentage being granted towards the payment of the principal clearly depends upon the rate of interest.
Furthermore, your monthly EMI amount remains the same, but the proportion of interest, as well as principal, will change. More to the point, one needs to pay less towards the interest and more towards the principal with each successive payment.
How Personal Loan EMI Calculator Works?
When it comes to personal loan EMI calculator, it works on the two basic formula.
The first formula is used to calculate the monthly interest rate, whereas the second one is used to calculate the EMI. Now, let’s know how these two formula work.
Calculate Monthly Interest Rate
Whenever you apply for a personal loan in a bank or any other financial institution, it would not be wrong to say that interest rate is the first and foremost thing that grabs the attention of all. So, before you start using the EMI calculator, you need to convert your annual interest rate into a monthly interest rate. And, in order to convert that, below formula is used:
r=annual interest rate/12
For example- If a bank offers you 18% of interest rate annually, your monthly interest rate will be:
18/12=1.5
Thus, 1.5% will be your monthly interest rate for personal loan.
Calculate Monthly EMI
Calculating the EMI is a bit difficult as compared to calculating the monthly interest rate. To calculate your EMI, you need to use the below formula:
E = P . r. (1+r)^n/((1+r)^n – 1)
In this-
E=EMI
P=Principal Loan Amount
r=Monthly Interest Rate
n=Monthly Loan Tenure
For example– If you have borrowed a sum of Rs. 10,00,000 from a bank at an annual interest rate of 10.5% (10.5%/12=0.875 monthly) for 10 years ( 10×12=120 months), your EMI will be:
Rs. 10,00,000 *0.00875 * (1 + 0.875)120 / ((1 + 0.875)120 – 1) = Rs. 13,493.
Now, you will pay Rs. 13, 493 for 120 months to repay your personal loan amount. Thus, your total payable=13, 493×120 = 16,19,220.
What are the Features and Benefits of Personal Loan EMI Calculator?
Accuracy
With the help of EMI calculator, one can get accurate data or information. Without this effective tool, there might be a possibility of you to make the mistakes.
Time Saving
If you calculate your monthly EMI with a pen and paper, it will surely take a lot of time. But, with EMI calculator, you can easily calculate your EMI within a few minutes.
Easy Comparisons
EMI calculator allows you to have easy comparisons within a few minutes. Yes, you can compare different banks simultaneously, and know different EMIs offered by them.
Endlessly Adjustable
The best thing about EMI calculators is the fact that you can use them endless times. Until and unless you are not sure or satisfied, you can fill the entries in the calculator n numbers of times. You can many times re-adjust the settings and can get the end results.
It’s About More than Just the EMI
Many calculators apart from calculating your monthly EMI, give you a bit more. Yes, with interesting graphic representations, pie charts and tables, these calculators give you more than what you actually expect.
Personal Loan FAQs – Frequently Asked Questions
It is an unsecured (do not put any type of security) loan provided by a bank and non-banking financial company (NBFC) based on – income, previous credit record, repayment capacity, employment type and more. A personal loan is available for salaried and self-employed.
What is personal loan?
How to apply for personal loan?
What are the Interest Rates for Personal Loan?
What is Personal Loan EMI Calculator?
What are eligibility criteria for Personal Loan?
- One must have a regular source of income.
- Salaried individual, self-employed business person or a professional both are eligible.
- One must have proper credit record and good CIBIL.
- Final amount sanctioned will depend on your income and eligibility and some other factors as per the lender’s criteria.