If you are planning to get a Personal Loan then you must estimate the monthly installment payable to the bank. You must use our free and online Personal Loan EMI calculator to do so. Just, fill the amount of loan, loan tenure (length of loan in year or months), and rate of interest; our EMI calculator will calculate the loan EMI (Equated Monthly Instalment) for you.
What is a Personal Loan EMI Calculator?
Personal Loan EMI Calculator is a useful free and online tool for calculating the loan EMI. It’s effortless to use and accurate in calculations. Within a fraction of seconds the information on the loan EMI in a table is ready. Our Personal Loan EMI calculator can help to plan your monthly loan EMI payments more efficiently.
Benefits of Using Our Personal Loan EMI Calculator:
- Simple to use
- Saves time and delivers quick & accurate results
- Assists you in determining your EMI
- Assists you in planning
What exactly is Personal Loan EMI?
EMI is also known as the Equated Monthly Installment. It is a fixed amount that borrower pay to the bank each month on a fixed date to repay the loan. In other words, if a person receives a loan from a bank or any loan firm the EMI will be paid back for the loan. Several factors decide the EMI value that are as follows:
- Borrowed principal
- Interest rate
- Loan term
- Rest period on a monthly/annual basis
The mathematical formula for calculating EMI is:
E = P x r x (1 + r )n / ((1 + r )n – 1 )
- Where P= loan amount, r= interest rate, and n=tenure in months.
- The greater the loan amount or interest rate, the greater the EMI payment, and vice versa.
How is the EMI for a personal loan calculated?
Calculation requires filling in the necessary information in the given field. After entering the information, the user receives the result, which includes the monthly EMI amount consisting of monthly interest, principle paid in given EMI, total interest on loan, and total loan payable. Following steps outlines the EMI Calculation procedure pretty well:
- Choose or enter the amount of loan you want to take out.
- Select or enter the repayment period.
- Enter the interest rate charged for your loan by the bank or lender.
- Then hit the calculate button, our calculator will display the results automatically in a table.
- The cumulative EMI, payable interest amount as well as overall levied sum are shown in the online EMI calculator.
- By changing your input values, you can recalculate the EMI.
What Factors affects the Personal Loan EMIs?
Personal loan EMIs are affected by a variety of factors. The monthly payments are determined by the principal amount, loan tenure or term, and interest rate applicable on loan. Before approving personal loans, banks and other lending institutions should take into account these critical factors to determine the loan amount & interest rate charged on a personal loan:
- Your credit score (CIBIL Score)
- Record of repayment towards previous loans (if any)
- Record of repayment towards Credit Card payments (if any)
- Income / Salary documentation
- Investment statements
- Nature & location of employment
- Debt-to-income ratio
- Yearly earnings
- Income Tax Returns (ITR) for previous two years
How to choose suitable EMI amount for yourself?
- Understand your monthly income: You can choose your EMI, loan amount and loan tenure based on your savings and expenditure rates.
- Debt Amount: This amount relates to the quantity to be borrowed through a personal loan which would also ascertain the tenure of the loan.
- Interest rate calculations: You can use possible varieties of term loan with the suggested loan to attain the optimum tenure for your line of credit.
- Evaluate Your Future Financial Prospects: When calculating your loan EMI, keep in mind any upcoming salary increases or increments. Accordingly then EMI can be increased and repayment tenure can be shortened.
- Utilise an personal loan EMI calculator: If there remains a dilemma as to which kind of loan borrowing is best, an personal loan EMI calculator provides the best solution. A great tool for free to use, helps you calculate the amount of the EMI and determine the duration of your loan. A personal loan EMI calculator details total interest, total income, and full payment (interest + principal) due during the loan term.
How should the Personal Loan EMI be paid?
The EMIs are due on a set date of each month, the dates are shared with the borrower when the loan is disbursed. Today, the NACH (National Automated Clearing House) mandate makes loan repayment nearly automatic. EMI deduction these days are done directly from the borrower’s bank account on scheduled date.
The borrower also can pay manually and payment in part but it is totally depends on the lending institution or bank. Some banks may charge a penalty fee in addition to the GST on the part payment amount.
Personal Loan EMI Calculator FAQs
Assuming the EMIs remain the same, the loan’s tenure would increase due to insufficient balance or any other reason. Remember that failing to pay your Personal Loan EMIs reflects poorly on your credit ratings and may have an impact on your credit score (CIBIL Score). As a result, getting loan in future may be affected in terms of higher rate of interest or lower loan amount.
Yes, Personal Loan EMIs can be paid in advance or part-payment but it totally depends on the lender bank or financial institution. Some banks may charge a penalty on the part payment or advance payment in addition to the applicable GST.
In general, banks and financial institutions give personal loan for a duration of ranging from 6 months to 72 months. The loan tenure or duration is also depends upon your credit history or financial condition.