Business Loan EMI Calculator
Calculate your Personal Loan Monthly Installment easily with the online Personal Loan EMI Calculator in India
| EMI | Rs. 1658 |
|---|---|
| Total Interest | Rs. 10658 |
| Total Payment(Principal + Interest) | Rs. 10658 |
| Principal Amount | 40% |
| Interest Amount | 60% |
The Personal Loan EMI Calculator helps you make informed decisions on taking a loan and how much you need to pay for its monthly instalments.
A personal loan refers to an unsecured loan for meeting personal financial needs like medical emergencies, weddings, vacations, etc.
What is a personal loan EMI?
A Personal Loan EMI is the monthly instalment amount to be paid by the borrower to the lending institution. It sums up the principal along with the interest amount.
What is a Personal Loan EMI Calculator?
The Personal Loan EMI Calculator is a handy tool that tells you the exact amount of money to be paid monthly to the lender to clear the outstanding loan amount. You only need to provide some information such as the interest rate, loan amount, and loan tenure.
Calculating any type of loan EMI is possible using the given formula here:
E = P x R x (1+R)^n / {(1+R)^n – 1}
E is the EMI,
P refers to the principal amount,
R is the interest rate, and
n stands for tenure
Before entering the interest rate into a personal loan EMI calculator online, you have to convert the annual interest rate to a monthly interest rate. It can be done easily by dividing the annual interest rate by 12.
R = annual interest rate divided by 12
What factors can affect your personal loan EMI?
People with higher and more stable incomes are able to repay loans without any defaults. Due to their high repayment capacity, banks can even offer them low-interest rates. On the other hand, lower-income people with unstable jobs will get loans at a higher interest rate.
Your credit score is one of the determining factors for loan approval and even EMI. Someone with a credit score of more than 750 will have a better chance of getting a loan approved. It measures the borrower's creditworthiness.
If you have maintained a good relationship with your lender through past timely repayment, then you will get an affordable deal. This trust takes time to build and happens only when you have been loyal to the lending bank for a long time.
It is the ratio of your debt payments divided by your overall income. If it's high, it shows that the borrower is burdened with debt, and in such a case, you can't get a loan of a higher value. Also, the interest rate increases for certain tenure.
What Are the Benefits of Using a Personal Loan EMI Calculator?
Calculation of a personal loan EMI becomes a cakewalk as you only have to enter the required details. The results are shown immediately by the personal loan EMI calculator. It can take minutes for a human to get the same result.
An error in the calculation can put you in trouble later, but with a personal loan EMI calculator, you don't have to worry. It will provide you with accurate results within a few seconds.
After calculating the EMI for a personal loan, With an EMI calculator online, you can prepare yourself for the budgeting and managing of future expenses.
A personal loan EMI calculator online will lead to better decision-making. You can decide what loan amount and tenure are best for your needs.
The tenure period of a personal loan ranges between 1 and 5 years.
Yes, it's possible, but only when the co-applicant is one of the primary applicant's members.
Personal loans come under the category of unsecured loans, which means they have a high rate of interest. At present, the majority of the banks and NBFCs are offering personal loans at a 10.25% interest rate.
There are two types of interest rates: floating and fixed interest rates. A floating interest rate is best if you want the EMI to change over time. But to pay the fixed EMI, you can choose the fixed interest rate option.
Yes, there is no restriction on the amount of EMI that you can pay. In fact, paying more will reduce the outstanding principal and interest burden.
Keep these documents on hand to get a personal loan:
If you meet the following eligibility criteria and carry the required documents, then the lender can sanction the loan without any hassle:
If you have taken a loan for a higher amount, it is recommended that you get loan insurance as well. It will handle your missed EMI payment for a short time. You can also do either of the following things:
Some ways to reduce your personal loan EMIs include:
Skipping an EMI charge can lead to a penalty fee of Rs. 1200 as the EMI bounce charge. This will affect your tenor as well as your credit score, and eventually, your creditworthiness will be reduced.
The personal loan amortization schedule contains detailed information in tabular form on periodic required payments throughout the loan tenure. And amortization is simply the process of calculating the specified loan repayment with EMIs on the selected tenure.
Personal loans are free of any tax benefits. The only exception is when you are taking a personal loan for home renovation because it falls under the income tax deduction under section 24.