17 Feb 2021 | 5 min read
Personal loan EMI is the amount that a borrower needs to pay every month during the loan tenure to repay the loan amount. This EMI comprises the actual loan amount and the interest due on it. To calculate that exact EMI amount, you can use a Personal Loan EMI Calculator.
All the banks or non-banking entities use a mathematical formula for the calculation of personal loan EMI. In order to ease out the calculation process, one can always use a personal loan EMI calculator and get the results in a few seconds.
The results totally depend upon the inputs provided by you to the calculator. Mentioned below are the details that are asked at the time of calculating your personal loan EMI:
Loan Amount: It is the amount that you borrow from a financial or non-financial institution. The interest rate is implied on this amount and divided as per the chosen tenure. The borrower can enter the loan amount into the EMI calculator as per his/her loan requirements.
Interest Rate: It is charged on the principal amount. Interest rates vary from bank to bank. Also, these can be categorized as fixed or floating. In fixed interest rate loans, the interest rate remains the same throughout the loan tenure whereas in the floating interest rate, the rates may fluctuate as per the base rate and this might result in a different amount of EMI every time.
Loan tenure: It is the time span that you choose to repay the loan amount. The personal loan tenure ranges between 12 months to 5 years. The applicant can choose the loan tenure that suits him/her the best.
Calculating the personal loan EMI is a long and tedious task, therefore one needs an EMI calculator for the calculation. Here’s the formula that is used for the calculation of personal loan EMI:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
P= Rs. 5 lakh
R= 15% per annum, which means: 15/12= 1.250 per month
N= 60 months
EMI = [500000 x 1.250 x (1+1.250/100)^60]/[(1+1.250/100)^60-1] = Rs. 11,895
This calculator not only provides accurate results but also saves a lot of time. It is an easy tool that helps in calculating the results in a few seconds.
Even before you apply for the loan, you can calculate the personal loan EMI using this calculator. The borrower can assess his/her repayment capacity as it diloan splays the EMI that has to be paid during the tenure as per the bank’s interest rate.
The personal loan EMI calculator helps in the easy calculation and decides the loan amount that can be repaid conveniently. EMI lets the applicant know how much money one needs to keep aside from the monthly income. You can use the EMI calculator to know a certain amount that can be paid back easily without hurting the finances.
So, use this EMI Calculator for easy and quick calculations and get your hands on the best of deals as per your requirements and eligibility.