UCO Bank Personal Loan EMI Calculator 2022

UCO Bank provides salaried and self-employed people/professionals as well as pensioners with personal loans of up to Rs. 10 lakhs. With interest rates that start at as low as 10.95% p.a. The amount of the loan can be used to fulfill different financial needs, including the purchase of consumer durables, travel expenses for funds, etc. Personal loans are payable through Equated Monthly Installments, i.e. With EMIs.

Even before you apply for a Personal loan, the UCO Bank personal loan EMI calculator helps you measure your monthly payouts and lets you manage your finances in a better way. It helps you to know the cost of the loan and, according to your repayment potential, finalize the amount and tenure of the loan.

• Better Financial Management: The EMI calculator helps  users to calculate the expense of the loan even before they apply for it. So that they can make informed decisions and plan their finances accordingly. It lets them select the amount and tenure of the loan that fits their budget.
• Free to use: The EMI calculator can be used free of charge at anytime and anywhere. There is also no limit on the number of times you can use the calculator, so you can change the components as many times as you want till you arrive at the most suitable EMI. 
• Time saving: It gives them instant results and they no longer have to manually perform  long and tricky mathematical calculations. 
• Accurate and Reliable: To give an error-free performance, an EMI calculator uses computerized algorithms and is, therefore, more accurate and reliable than manual calculations performed by hand.

The formula used to measure EMIs for personal loans is determined by the interest calculation method selected by the bank, whether the bank uses the flat rate method or the balance reduction method. The two EMI measurement methods are discussed below: 

1. Flat Rate Method: The EMI remains the same during the loan term when the flat rate method of interest calculation is used. This is because interest is charged on the entire principal amount availed by the borrower. . The formula for  calculating EMI according to this method is: 

• Flat interest rate Method  = (Main + Interest)/ Months of Loan Tenure 
• For eg, Mr. X takes a loan of Rs. 5 lakh for 12 months at a flat rate of interest of 20 percent. 
• Interest for year 1 = 20% of principal per annum = 20% of Rs. 5 lakh = Rs. 1 lakh 
• Total interest due throughout the loan = Rs. 1 lakh 
• EMI payouts per month for Mr. X= (Rs. 5 lakh + Rs. 1 lakh)/12 = Rs. 50,000

2. Reducing interest rate method: As interest is calculated on the reducing balance, the interest portion of the EMI paid  reduces over the loan tenure. This is because the interest is paid only on the principal amount of the unpaid loan (which decreases as the loan is paid off). This is a contrast to the flat interest rate calculation.

The declining interest  rate method will also assist you in saving on the overall interest payable. The formula for calculating EMI, as per this procedure, is: 

EMI with Balance System Reduction = [P x (R/100) x {1+(R/100)}^N]/[{1+(R/100)}^(N-1)]]{1+(R/100)}^(N-1)] 

Where, 

• P refers to the principal/loan amount; 
• R refers to the monthly interest rate (i.e. the annual interest rate)/12; 
• N refers to the tenure for repayment of the loan in months.
• For example, Mr. Y takes a loan of Rs. 5 lakhs at a 20 percent p.a. lower balance interest rate. For a 12 months duration. 
• Monthly rate of interest = Annual interest rate/ 12 = 20/12 = 1.67 percent per month 
• EMI monthly payout for Mr. Y= [5000000 x 0.0167 x (1+0.0167)^12]/(1+0.0167)^(12-1)] = Rs. 46,3177 x (1+0.0167)^12]/(1+0.0167)^(12-1)]

The Rate of Interest on UCO Bank Personal Loan is charged on the reducing balance after the payment of each EMI. The table below shows the generic method of UCO Bank personal loan EMI calculation using various combinations of loan amount, tenure, and interest rates:

Loan Amount (Rs.)	Interest Rate (p.a.)	Tenure (months)	EMI (Rs./month)
50,000	11%	12	4,419
1 lakh	13%	24	4,754
3 lakhs	15%	36	10,400
5 lakhs	17%	48	14,428
10 lakhs	20%	60	26,494

Some main factors that impact personal loan EMIs from UCO Bank are discussed below:

• Loan amount: The amount of money you borrow from the lender is referred to as the loan amount or principal of the loan. A higher loan amount means higher EMIs. 
• Loan Tenure: It is the period for which the repayment of the loan will be made. Longer-term loans typically result in lower EMI payouts. However, you may need to pay higher interest over the loan tenure.
• Interest rate: It is the interest rate paid on the amount of the loan by the  borrower. A higher interest rate usually results in a higher EMI payout.
• Interest Calculation Process: The method used to calculate personal loan EMIs often influences the interest payable. Most frequently, EMIs calculated using the flat rate method are higher than EMIs calculated using reducing balance method.