Personal Loan EMI Calculator

EMI Calculator 8458 views

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

Below is a table showing personal loan interest rates & per lakh EMIs of various banks

BanksInterest Rate (in p.a)Per Lakh EMI (in ₹) for 5 Years
HDFC Bank10.99% - 20.70%2,174-2,688
ICICI Bank11.00% - 18.49%2,174-2,566
SBI11.85% - 15.10%2,219-2,374
Kotak Mahindra Bank10.99% - 17.99%2,174-2,539
Bajaj Finance/Finserv11.99% - 15.50%2,224-2,432
Axis Bank

15.50% - 24.00%

2,405-2,877
Tata Capital13.00% - 21.00%2,275- 2,705
RBL Bank14.00% - 20.00%2,327- 2,649
Standard Chartered Bank10.99% - 14.49%2,174-2,352
Fullerton India14.00% - 33.00%2,327- 3,422
Citibank

10.99% - 18.99%

2,174-2,594
HSBC Bank

11.29% - 17.50%

2,189-2,512
Canara Bank12.60% - 13.60%2,159- 2,311
IDBI Bank12.49% - 13.49% 2,249-2,300
Punjab & Sind Bank12.40% - 13.65% 2,240-2,252
Punjab National Bank10.95% - 14.70%2,260-2,363
IndusInd Bank

12.99% - 20.00%

2,275-2,649
Vijaya Bank12.35% - 13.35%2,242-2,293
Yes Bank13.99% - 16.99% 2,327

Rahul Verma is little worried these days as his younger sister’s marriage is just a month away. He is falling short of cash to do the wedding arrangement for her sister. Thus, he has decided to avail a personal loan to fulfill the impending need. But the problem is that he has no prior experience of availing a loan, thus he is confused how to calculate the EMIs.

So, for the same, he researched online and found a website called Wishfin which helped him in calculating the EMIs in a hassle-free and quick manner. On the site, he found an online tool called Personal Loan EMI Calculator that had the answers to all his questions. Wanna know how? Just read the page further…

What is Personal Loan EMI Calculator?

An EMI calculator is one such magical tool that is used to calculate the monthly installments of a personal loan. With the help of a Personal Loan EMI Calculator, a borrower can know his/her monthly installments in the most hassle-free manner. This time-saving tool calculates the exact monthly installments and helps you in taking the calculative decision.

This useful device also provides you the detailed information about Total Interest Outgo and Total Amount Payable (Principal+Interest) in the easiest and fastest manner. In order to know the same, you just need to feed few details such as:

  1. Loan Amount
  2. Interest Rate
  3. Tenure

You can use personal loan EMI Calculator of various banks including HDFC, ICICI, SBI, Axis, etc.

Let’s just have a better understanding of the same with the help of an example below.

Suppose, Raman Verma, a 28 year-old, Senior Manager by profession is looking to avail a personal loan of ₹5,00,000. One lender has agreed to offer him the same amount at an interest rate of 10.99% per annum for a tenure of 5 years. But before availing the loan, Raman wants to know what would be his EMIs? Thus he used an EMI Calculator for the same to get all the answers. Take a look at the table below for further clarification…

Table Showing EMI, Interest Outgo, and Total Repayment Amount

Loan Amount Interest Rate Tenure Monthly Instalment Total Interest Amount Total Amount

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

Year Principal Interest Balance Amount

Parameters on which Personal Loan EMI is calculated

Here are the parameters based on which personal loan EMI is calculated:

Loan AmountThe first and the most important thing to know when it comes to calculating EMIs is actually the loan amount. The monthly installment of the loan is directly dependent on the loan amount which varies from lender to lender and is calculated on the basis of the personal loan eligibility.

Interest RateBe it any loan, the interest rate that a person will be offered on the money borrowed is the main base that actually decides the exact amount of your EMIs. Generally, different banks offer different personal loan interest rates. So, the higher the rates are, the more EMIs you need to pay. And, if the rates are lower than your monthly installments also be reduced, hence less burden on your pocket.

Tenure: The longer the tenure, the easier it is for the debtor to repay the fund to the bank or to the financial institution from which he/she is taking the loan. For a personal loan, the lenders generally offer a tenure of up to 5 years.

How Does Personal Loan EMI Calculator Work?

A personal loan EMI Calculator works on a simple algorithm, wherein the device calculates the EMIs, Interest Outgo and Total Amount Payable of a personal loan in a hassle-free manner. The moment you feed the credentials into the device, i.e. Loan Amount, Tenure and Interest Rate, this magical tool instantly fetches the value for you in just few seconds. It gives you the exact and accurate calculations in the best manner, hence eases the burden from your shoulder. This is the reason that this tool has been widely used by the borrowers to know the exact calculations of their monthly installments.

Personal Loan EMI Calculator Formula

The calculation in the EMI calculator is done through the below-given formula:

E = P . r . (1+r)^n/((1+r)^n – 1)

where,

E = EMI (Equated Monthly Installment)
P = Principal Loan Amount
r = Monthly Interest Rate
n = Monthly Loan Tenure

What is an Amortization Table?

An Amortization Table shows the year-on-year repayment track of an individual availing a personal loan. It lets you know the Principal, Interest and Balance Amount of each year payable towards a loan. Every time an EMI is paid, there is some part of principal also paid along with it. The principal is the original loan amount that the borrower has to pay. However, by making regular periodic payments, the principal gradually decreases and slowly comes to zero.

Features and Benefits of a Personal Loan EMI Calculator

EMI calculator has many advantages and some of them are as follows:

Accuracy: The manual calculation of the monthly installment might not give the accurate results as the calculation is a little tricky. However, if the calculation is done through online EMI calculator, the result would be accurate for sure. So, it would be suggested to use the EMI calculator instead of getting into such complicated calculation.

Time-Saving: As the calculation is a little difficult, doing it manually would be a little time consuming and might not be convenient for all. But, with online EMI calculator tool, a person can get correct results in few seconds. Hence, using a calculator is more suitable in this world where everyone is in hurry.

Easy Comparisons: On the basis of the loan amount, tenure and interest rates, a borrower gets various options to choose from. But, comparing all the options manually is not so easy and convenient. But, with the help of the calculator, a loan seeker can do a quick comparison of EMI and choose the best-suited one.

Endless Adjustable: A person is free to do the calculation of the EMI as many times as he/she wants. In times when a borrower is looking for the lowest interest rates on the loan amount that he/she desires, high EMI amount stops him/her to move ahead. But, there is always an option to re-adjust the tenure or the loan amount till the time the person is comfortable in paying till the EMI. For such cases, an EMI calculator is the perfect tool to use.

Fit loans to Budgets: Anyone who is looking for a personal loan would be concerned about the rates and the loan EMI that he/she will have to pay every month. Now, these payments are done on regular basis from the borrower’s monthly income. With the help of the calculator of personal loan EMI, a person can get the exact loan EMI that he/she will be liable to pay to the bank. Doing so would help him/her manage the monthly financial expenses and budget according.

Tells More Than EMI: An EMI calculator is not restricted to the monthly installment calculation. There are some calculators that provide a graphic representation of the personal loan and amortization table where a person gets to the gradual payment he/she has made to the banks/NBFCs from where the personal loan has been availed.

Accounted Processing Fee: In general, the personal loan EMI calculators tells the monthly installment on the basis of the interest rates, tenure, and loan amount. But, banks have certain processing fee that is also kept in account while calculating the monthly installments. There are some EMI calculators that consider the processing fee charged by the bank and shows the amount after adding that amount. Now that GST has been implemented, all indirect taxes like processing fees, service charges, and prepayment charges have increased marginally.

You May Also Read