Karnataka Bank Personal Loan EMI Calculator Feb 2023 - Wishfin

# Karnataka Bank Personal Loan EMI Calculator

### Highlights

• Calculate EMI & Interest via EMI Calculator

## About Karnataka Bank Personal Loan EMI Calculator

What is the first thing that comes to your mind while applying for a personal loan? Without a doubt, it would be EMI, right? Since you pay the same month-on-month over the entire loan tenure, which can be a maximum of 5 years at Karnataka Bank, its consideration is very important to do get an idea of the budgeting you need to make while servicing the debt. So when you get to know a device that can help calculate the EMI, your hassle of manually calculating the installments will be gone right away. Without much ado, let’s study the function of the calculator as we move along.

## What is EMI?

EMI is nothing but a combined sum of interest and principal amount payable on a loan. You can use the EMI calculator to compute the indicative installments. The calculator will take into account the following factors to calculate the installments.

• Loan Amount
• Interest Rate
• Loan Tenure

An ideal EMI must not constitute more than 20% -30% of your net monthly income. Keeping the EMI in the said range would help you in repaying the loan smoothly without having to rejig much in your day-to-day budget.

### Formula to Calculate EMI

You can even take the help of the below formula to calculate the EMI, which stands for equated monthly installment.

E = P . R . (1+R)^N/((1+R)^N – 1),

Where E = EMI
P = Principal Loan Amount
R = Rate of Interest
N = Monthly Loan Tenure

You may find it hard to compute the EMI using the complex mathematical formula, won’t you? So, it would be good to take the help of an example to understand the calculation better.

Example – Ankit Mehta applies for a personal loan of ₹3 lakh at Karnataka Bank at an interest rate of 12.50% for a period of 5 years. Let’s see how much EMI and interest he would be paying on the said loan.

Table Showing EMI, Interest Outgo, and Total Repayment Amount

Loan AmountInterest RateTenureMonthly InstalmentTotal Interest AmountTotal Amount
₹ 3,00,00012.50%1₹ 26,725₹ 20,698₹ 3,20,698
₹ 3,00,00012.50%2₹ 14,192₹ 40,613₹ 3,40,613
₹ 3,00,00012.50%3₹ 10,036₹ 61,299₹ 3,61,299
₹ 3,00,00012.50%4₹ 7974₹ 82,752₹ 3,82,752
₹ 3,00,00012.50%5₹ 6749₹ 1,04,963₹ 4,04,963

EMI, Total Interest Outgo, Total Repayment (Interest + Principal)

YearPrincipalInterestBalance Amount
1₹ 46,072₹ 34,920₹ 2,53,927
2₹ 52,173₹ 28,819₹ 2,01,753
3₹ 59,082₹ 21,910₹ 1,42,670
4₹ 66,905₹ 14,087₹ 75,765
5₹ 75,834₹ 5227₹ 0