Comparing Personal Loan EMIs of Leading Banks and NBFCs
10.50 onwards
10,871 onwards
2,174 onwards
10.75-16.49
10,809-12,290
2,162-2,458
10.99 onwards
10,869 onwards
2,174 onwards
10.75 onwards
10,809 onwards
2,162 onwards
10.90-18.25
10,834-12,751
2,167-2,550
10.49 onwards
10,744 onwards
2,149 onwards
10.99 onwards
10,869 onwards
2,174 onwards
10.35-14.85
10,648-11,790
2,130-2,358
11.75-16.25
11,236-12,199
2,247-2,440
9.75-16.00
10,562-12,159
2,112-2,432
11.49-14.49
10,744-12,694
2,149-2,539
11.40-15.50
10,909-11,961
2,182-2,392
11.00 onwards
10,871 onwards
2,174 onwards
11.15-12.75
10,909-11,313
2,182-2,263
12.85-20.35
11,274-13,345
2,255-2,669
12.55-12.95
11,198-11,300
2,240-2,260
10.49 onwards
10,809 onwards
2,162 onwards
9.25-15.05
10,440-11,908
2,088-2,382
12.50-13.50
11,097-11,351
2,219-2,270
10.00-15.00
10,697-11,738
2,139-2,348
13.88
11,585
2,317
10.49 onwards
10,744 onwards
2,149 onwards
What is Personal loan EMI?
The Personal Loan EMI, is nothing but Equated Monthly Installments on the loan amount you borrowed. EMI, is a convenient way of repaying your loan amount during the period of your choice. With the help of Personal Loan EMI Calculator you will be able to derive the EMI you will have to pay for the amount you have borrowed.
How to calculate personal loan EMI?
Our Personal loan interest EMI calculator is mentioned below and it is quite simple & hassle free to use. The mentioned personal loan EMI calculator formula can be used to achieve the EMI for any loan amount of your choice.
Let’s take an example, suppose you plan to borrow a loan amount of Rs. 10 Lakh at an annual interest rate of 8.5% for a tenure of 3 years. You can calculate your payable EMI with the help of above mentioned formula.
As it is visible that calculation of this formula could be time consuming and is of manual effort hence, Online EMI calculator can be used as an alternative. Online EMI Calculator is time saving and less manual effort with quick results in a matter of seconds.
In our current example, the EMI amount payable is Rs. 31,568/-
Formula for Personal Loan EMI Calculation
To calculate your personal loan EMI amount, a standard formula is used. This formula will help you to get an accuracy on the exact amount you will have to pay as an EMI against your loan.
The formula - EMI = [P x R x (1+R) ^N]/ [(1+R) ^ (N-1)]
EMI - Equated Monthly Interest amount
P - Principal amount
R - Rate of Interest
N - Tenure of loan
What method of EMI calculation do most banks use?
Banks & NBFCs use reducing Balance Method.
In the reducing balance method, interest is calculated using the same formula mentioned as above.
We will simplify reducing balance method to help you understand better.
Suppose you have requested for a Rs 1 lakh loan for one year at 8.5% p.a. Your monthly EMI using above mentioned formula will be Rs 8,722. The EMI amount consists of Rs. 8,014/- principal and Rs. 708/- interest. After your first EMI, your outstanding loan comes to Rs.91,986/-.
In the second month, the bank will charge interest on the outstanding balance of Rs.91,986/-. Therefore, your interest keeps decreasing every time you are paying the bank.
The EMI amount in the reducing balance method is considerably lower than in the flat rate method. In the EMI flat rate calculation, the principal loan amount will be constant during your loan tenure. Whereas, in the reducing balance method, the EMI is calculated on a monthly reduced principal amount. Hence, reducing balance is a better option for loan borrowers and used by many banks.
How to use Personal loan EMI calculator?
Personal loan EMI calculators are easy to use. Specifically designed to help understand a common person an EMI on their loan amount and plan ahead wisely. Follow instructions mentioned below to calculate your EMI for the specified tenure.
- Input loan amount of your choice
- Percent of interest rate (as per bank loan providers)
- Input tenure in years / months of your choice in respective fields
- EMI payable amount would be calculated and displayed at the bottom of the calculator
- Also, the total Interest amount paid over the period of loan tenure will be visible
Factors that affect personal loan EMIs
There are many factors that could affect your personal loan EMIs. Let's walk through few the important key pointers:
-
CIBIL Score:
Yep! You heard it right, credit score affects your EMI amount. Then there are chances that you may receive a personal loan at lower interest rates if your credit score is above 750 which is considered as higher. And if the interest rate applied to your loan amount is low, then automatically the EMI amount to be repaid will be low. If your credit score is on the lower side, then a higher interest rate would be applied to your loan amount causing your EMI amount to increase. -
Loan Amount & Repayment Terms:
Higher loan amounts will attract higher EMI amounts. Whereas if you choose for a longer term of repayment, the EMI to be paid would be much shorter. You may find this as a better option as the EMI amount is much lesser but hold on! Here's the catch, the interest amount you would have paid over the time period would have definitely been much higher or maybe subsequently to the overall amount being repaid!
Hence, it is advisable to opt for a shorter repayment term. -
Age:
The older you get, especially closer to retirement age, greater will be the risk of being in the default list of loan providers, it could be due to uncertainty of your income. Hence, people above a certain age group, especially those who are retired or closer to being retired, find it difficult to avail loans. Even if they do, it will be mostly on unfavorable terms. -
Existing debt:
Technically looking having an existing debt is an issue, but having too many loans running simultaneously, especially unsecured loans could cause a problem for you. Loan providers will perceive this as a risk and can be hesitant towards lending you a loan. Adding to this, delayed payments could also pose a risk for loan providers. -
Employment:
Loan requestors who have a steady income source like salaried professionals, etc are usually at low risks, than those who do not have steady income like self-employed individuals. Hence, steady income individuals have higher chances of receiving a low interest rate on their loan amount which directly makes your EMI amount to be lesser.
However, lending your loan amount depends solely on the lender's discretion.
Benefits of Using a Personal Loan EMI Calculator
- Personal Loan EMI Calculator helps you determine how much amount to be borrowed based on how much you can afford to repay without straining your finances.
- It helps you decide a loan tenure of your choice according to your convenience, the calculations you do help in making a mindful decision on the loan amount you want to borrow.
- With the help of a personal loan EMI calculator you will be able to forecast your monthly expenditure budget so that you can afford the EMIs and still have some cash in hand for savings.
- Personal Loan EMI Calculator makes you financially disciplined by planning for your repayment of borrowed loan amount which also helps in avoiding unnecessary expenses.
