Principal Amount
Loan EMI
Total Interest Payble
Total Payment (Principal+Interest)
Everyone around today is well aware about their spends & investments. Each individual's goal is to budget their needs, expenses & investments also able to buy things they dreamt of. Personal loan EMI calculator helps you ascertain your EMI & aid in planning your purchases. Personal Loan EMI Calculator projects a graph of EMI you can afford without burning your pockets and putting you at risk. Easiest option one can get to purchase things of their dreams. Here in this article we will be simplifying the term Personal Loan EMI Calculator and how it helps, benefits, and the way to avail it.
Let’s summarize the Personal Loan EMI on per Lac loan amount
Suppose, You borrow Rs. 1,00,000/- for the period of 1 year with an interest rate of 10%(interest rate is subject to each bank loan provider; it may vary). An EMI for 1,00,000 loan amount would be 8,792/- per month. The amount is derived with the help of a standard EMI calculator formula
.e; – EMI = [P x R x (1+R) ^N]/ [(1+R) ^ (N-1)]
This formula is well explained further below.
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.
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/-
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
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.
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.
There are many factors that could affect your personal loan EMIs. Let's walk through few the important key pointers:
However, lending your loan amount depends solely on the lender's discretion.
Yes, your personal loan EMI can change during the loan tenure depending upon the amount of installments you repay each month. When you repay your first installment of borrowed amount, that amount is reduced from the total borrowed amount hence from next month onwards interest would be levied on remaining loan amount.
For example, If you have borrowed a sum of Rs.1,00,000/- with an interest rate of 8.5% for the period of 1 year. Your monthly EMI using Personal Loan EMI Calculator would be Rs 8,722. The EMI amount consists of Rs. 8,014/- principal and Rs. 708/- interest. After your payment of first EMI, your outstanding loan amount comes to Rs.91,986/-. During your second installment repayment, 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 causing your personal loan EMI amount to be changing during the loan tenure.
You can reduce personal loan EMI by opting for a longer period of tenure with a lower amount of loan to be borrowed. You can also reduce your EMI amount by looking for a low interest imposing personal loan provider. Low interest rate on personal loan amounts can give you good relief on the EMI amounts.
This process has been much simplified these days due to the digital services provided by most of the loan providers. You can do it either by online banking services, or reach out to them over a call. Also, you can submit an application requesting the same.
Knowing your EMI in advance can help you in budget planning your expenses way ahead. This will keep you financially disciplined and help in avoiding all the unnecessary expenses. And also help in achieving your goals in a systematic way.
You can check the EMI amount for a 3 lakhs personal loan with a tenure of your choice on Personal Loan Online EMI calculator. You can increase or decrease the EMI amount by opting for longer or shorter repayment tenure.
For example; If you are borrowing a loan amount of 3 lakhs with an interest rate of 8.5%, having a repayment tenure of 3 years will give you an EMI of Rs.9470/-.
You can check the EMI amount for a 5 lakhs personal loan with a tenure of your choice on Personal Loan Online EMI calculator. You can increase or decrease the EMI amount by opting for longer or shorter repayment tenure.
For example;If you are borrowing a loan amount of 5 lakhs with an interest rate of 8.5%, having a repayment tenure of 3 years will give you an EMI of Rs.15,784/-.
You can check the EMI amount for a 20 lakhs personal loan with a tenure of your choice on Personal Loan Online EMI calculator. You can increase or decrease the EMI amount by opting for longer or shorter repayment tenure.
For example; If you are borrowing a loan amount of 20 lakhs with an interest rate of 8.5%, having a repayment tenure of 10 years will give you an EMI of Rs.24,797/-.
Personal loan interest rate is calculated monthly, If the interest rate is 8.5% then the calculation would be as follow:
Rate of Interest - 8.5/12/100 = 0.007
For Example: If you borrow loan amount of Rs.10,00,000/- at a rate of interest of 8.5% for 5 years, then the EMI is Rs. 20,517/-
Rs. 20517/- X 60 = Rs. 12,30,992/-
(EMI) (loan tenure in months) (Principal + Interest)
Hence, total interest paid during the period of tenure would be Rs.2,30,992/-
Personal Loan Amortization Schedule is a scheduled repayment of the borrowed amount which is planned and charted by the lender and agreed by the borrower. This scheduled table is to be followed until the borrowed loan amount is paid off at the agreed tenure period. This schedule is provided by the lender to the borrower once the personal loan has been approved and to be released. In the early part of the tenure, the schedule covers the interest imposed on the loan amount followed by covering the principal amount during the later part of the schedule.
You can pay Personal Loan EMI via online wallets, UPI or through bank apps. Also you can set an auto deduct in your bank apps. This would deduct the EMI amount on the set date, so even if you forget to pay EMI on the set date, it will auto deduct from your bank account. This will help in delayed repayment of EMIs and also will keep you away from defaulting EMI repayments.