Picture of the author

Personal Loan EMI Calculator

A personal loan is one of the most sought-after credit facilities available. This hike in popularity is due to the ease of its application process and higher approval rates. In the time of emergencies, the availability of funds matters the most to you than anything else.

The repayment process can be a hassle-free affair if you plan it properly. This is why you should use a personal loan EMI calculator before you apply for the credit. Using this tool is extremely easy. You can figure out how much credit you should apply for so that you can comfortably pay it off.

Personal loan interest rates are usually higher than the other types of credit facilities. This is due to the fact that it falls under the “unsecured loan” header. Higher interest means higher EMI outflow. Missing out on one EMI can lead to a hefty penalty payment. This will further enhance your loan's burden.

You can avoid these mishaps with the personal loan EMI calculator online at the right time.

Learn the particulars of a personal loan EMI calculator and more in this blog by Credmudra.

How Does Online Personal Loan EMI Calculator Calculate Loan EMI?

A personal loan EMI has two components:

  • Principal amount component
  • Interest amount component

The repayment procedure is not linear. Hence, calculating the EMI amount manually is not simple. However, there is a mathematical expression that you can use to figure it out. Take a look at the formula below:

The formula –

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Here

EMI Equated Monthly Payment

P - Principal amount

R - Rate of interest

N - Number of months

Suppose, you have taken a personal loan (P) of Rs.50,000. The lender has levied interest at a rate of 11% per month (R). The repayment tenure is 2 years or 24 months (N).

Now, putting these values in the formula, we get –

EMI = [50,000 x 11 x (1+11)^24]/[(1+11)^24-1]

Hence, you have to pay a monthly EMI of Rs.2330 per month for the next 24 months.

The Process Is Pretty Time-Consuming, Isn't It?

Choose the faster, more accurate, and easier option – the personal loan EMI calculator online.

Amount

1,00,00,000

Length

30 years

% Interest

15 %

Monthly Payable:

126444.40/mo

Principal

1,00,00,000

Interest

35519984.00

Total Payable

45519984.00

Steps To Use A Personal Loan EMI Calculator

The steps are extremely simple to follow and you can figure it out from any place at any time.

  • Step 1: Enter your loan amount.
  • Step 2:Enter the interest rate applicable to your lender.
  • Step 3:Choose your preferred tenure for repayment.

You should note that the higher the repayment tenure, the lower will be the EMI amount. However, in the long run, you will end up paying more interest. This is why, if feasible, you should go for a shorter repayment tenure.

Benefits Of Using A Personal Loan EMI Calculator

Check out the following pointers to know how you can benefit from using a personal loan EMI calculator:

  • Fast & Accurate Results:By using a personal loan EMI calculator, you will get faster and more accurate results in just a few seconds.
  • Compare & Select Lenders:You can compare different lenders and their interest rates and choose the one most suitable to your requirements.
  • Choose Your Repayment Tenure: You can choose different repayment tenures and choose the one you are most comfortable with.
  • More Info than Just EMI:With a personal loan EMI calculator, you also get the amortisation or repayment schedule. This will help you get a clear idea about your loan repayment structure and the outstanding amount after each payment.
  • Free of Cost: Using this calculator is totally free. So, you can perform as much trial and error as you need to come to the conclusion most feasible for you.
  • 100% Paperless Process:Our loan process from application to approval is totally digital. Your physical presence is not required at all and you can apply for it from any place at any time.
  • Explore Flexible Options: For loan amounts ranging between Rs.1,000 to Rs.1,00,000, you can choose a tenure between 3 months to 2 years as per your preference.

Factors Affecting Personal Loan EMI

Take a look at these factors that play a significant role in determining your EMI amount:

  • Repayment Tenure:The loan repayment tenure you choose is inversely proportional to your EMI amount. This means the lower the repayment tenure, the higher the EMI amount, and vice-versa. Thus, you might find that having a longer loan tenure is more convenient. However, interest outgo is higher for longer loan tenure.
  • Principal Amount: The principal amount that your lender approves depends on a lot of factors, such as your credit score, repayment history, your relationship with the lender, etc. Also, the higher the principal amount, the higher the EMI. So, make your decisions carefully and within your capabilities.
  • Rate of Interest:The EMI is directly proportional to the interest rate. Also, in the case of personal loans, the rate of interest depends mostly on the borrower. If your creditworthiness sounds promising to the lender, they will sanction your loan at the lowest rate of interest possible.

How To Use Credmudra Personal Loan EMI Calculator

Using the Credmudra Personal Loan EMI Calculator is so straightforward and simple that even a person who is the least accustomed to the internet can operate it with absolute ease.

You just need to enter the loan amount, rate of interest applicable, and preferred tenure correctly in the respective sections.

Consider all the factors mentioned and choose your repayment tenure and lender carefully before applying for the loan. Lastly, using a personal loan EMI calculator is absolutely recommended for making an informed decision, which will offer financial benefits as well as stability.

Apply For A Personal Loan Online With Minimal Documentation

FAQs On Personal Loan

1. How much is the average rate of interest on personal loans?

Usually, most banks and NBFCs offer personal loans at an interest rate ranging from 10.50% to 24.00% per annum. However, this might vary with the various factors that affect the interest rates. In order to get the actual personal loan interest rate, you should contact with your lender and enquire about the same with them.

Even the slightest delay in repaying the monthly instalment will negatively affect your credit score. This will indicate poor repayment behaviour, reducing the chances of loan approvals in the long run. In order to reduce these complications, it is best to set a reminder and keep the money ready to pay before the EMI payment date.

The rate of interest remains fixed throughout the repayment tenure in case of a fixed rate. On the other hand, the rate of interest keeps changing with the fluctuations in the market in the case of a floating interest rate. Willing borrowers should keep this thing in mind and choose the option that best suits their needs.

Credmudra

4.9

Rated by our customer

Follow Us On-

Our Company

  • About Us
  • Terms and Condition
  • Privacy Policy
  • Data Storage Policy
  • Experian Terms & Conditions
  • Our Lendinng Partners
  • Blog
  • Careers

Contact With Us

Mumbai Location:
912 Sureshwari Techno It Park Premises Village Eksar, Link Road Borivli (w) Mumbai, 400092

Bhopal Location:
B No. 8 Nirupam, Ph-ii, Nirupam Estate, Ahmedpur Kalan, Huzur, Bhopal, Madhya Pradesh, India, 462026

Contact Email:
[email protected]

Startupindia

Join Our Newsletter

Thank You For Subscribe us

* Will send you weekly updates for your better finance management.

Copyright @ Credmudra 2024. All Rights Reserved.