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The Utility of a Personal Loan Calculator

Highlights

  • Want to know what could be your EMI? Then use a Personal Loan EMI calculator
  • Read this post that tells you how it can make your personal loan journey a hassle-free one

It helps us greatly when we get an idea in advance regarding the payment to be made towards a personal loan that can span for a maximum of 5 years. Plus, when you get different repayment estimates to choose from, you will only enjoy taking a personal loan. All this and much more is possible with a tool called personal loan EMI calculator. Let’s read this post that opens out the utility of the calculator.

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How Should I Use a Personal Loan EMI Calculator?

The Personal Loan EMI Calculator is available online. All you need to do is enter the loan amount, rate and tenure in the calculator, which will then flash the EMI as applicable. Also, don’t forget to refer to the amortization table for a repayment plan throughout the loan tenure. Because using the schedule, you can plan a part or pre-payment later on.

EMI Calculator for Personal Loan
Loan Amount (₹)
Interest Rate (%)
Tenure (Month)
Results
Loan Amount
Interest Rate
Tenure(Months)
Monthly Instalment (EMI)
Total Interest Amount
Total Amount (Principal + Interest)
YearPrincipalInterestBalance Amount

What is an EMI?

The Equated Monthly Instalment (EMI) consists of the loan principal portion and interest. Therefore, EMI is equal to the principal amount + interest paid on the personal loan. The EMI, usually, remains fixed during the tenure of your loan, and it is to be repaid over the tenure of the loan every month. Mathematically, the EMI is calculated using P x R x (1+R)^N / [(1+R)^N-1] formula.

  • P = Principal amount of the loan
  • R = Rate of interest
  • N = Number of monthly installments

Suppose you are applying for a personal loan of INR 2,00,000 at a rate of interest of 15.5% p.a. for tenure is 2 years, your EMI will be as follows-

EMI = 200000 x 0.0129 x (1+ 0.0129)^24 / [(1+ 0.0129)^24 ]-1

The interest rate over your personal loan is calculated monthly using R = Annual rate of interest/12/100. As R = 15.5% per annum, then R= 15.5/12/100 = 0.0129.

If the calculation doesn’t suit you, keep experimenting with figures till the time you don’t find an estimate suitable to you. But keep in mind that the experimentation is logical in terms of the loan amount, interest rate and tenure.

How to Pay Personal Loan EMIs?

Your EMIs are fixed to be paid every month on a due date, which is notified when the loan is disbursed. To do the payment you have wide options like Electronic Clearing Service (ECS), National Automated Clearing House (NACH), Standing Instruction (SI) and Post Dated Cheques (PDCs) to choose from.

How Can You Plan Prepayment by Using the EMI Calculator?

Prepayment means the payment of the outstanding balance in full or parts before the expiry of the original loan tenure. To prepay your personal loan, you first need to check the balance amount and the interest payable which you can do with the help of an EMI calculator. Once it’s done, check your savings or other funds that you will save to prepay the loan amount to reduce the burden.

You can calculate the total amount you will save after the prepayment by reducing the prepayment fee that the lender will charge.

Benefits of Personal Loan EMI Calculator

  • Speed up the loan process: The EMI calculator saves your time and helps you decide the lender and check the EMI quickly as possible so that you don’t have any problems after the loan disbursal.
  • Instant Results: Your EMI would be generated in a few seconds. Otherwise, it will take more time to do the calculations manually using the formula
  • Amortization schedule: Using the automated generated yearly schedule of your EMI payment, you can find out how much interest you pay for the loan amount yearly. And, it also helps you plan a part or prepayment later to reduce the interest burden.
  • Easy to access: You can use the tool anytime without any problem. Visit the website of the bank or NBFC and use the tool by just entering the details of your loan.

Why Choose a Personal Loan?

Personal Loans help you with the financial back-up to fulfill your plans, some of the key benefits it offers are minimal documentation and speedy approval of loans. personal loans can be granted within 48 hours or at times even the same day of application. And the flexibility of loan amount and time. You can get a personal loan for amounts ranging from Rs. 50,000 to Rs 15 lakh for any period between 12 to 60 months.

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  • Personal Loan Interest Rates July 2020
    Fullerton India14.00% - 33.00%
    HDFC Bank10.75% - 21.45%
    ICICI Bank10.99% - 18.49%
    IndusInd Bank11.25%
    Kotak Bank10.99% - 20.99%
    RBL17.50% - 24.00%
    Standard Chartered Bank11.50% - 18.00%
    Tata Capital10.99% - 18.00%