What is Personal Loan EMI Calculator?
EMI, or Equated Monthly Installment, is the amount that a loan borrower has to pay throughout the loan tenure in order to repay the personal loan amount. Each EMI repays a part of the due amount i.e. the principal and the interest due on the loan amount. Personal Loan EMI is the monthly repayment that borrower needs to make in order to repay the loan according to the personal loan amortization schedule. The tool that you can use to determine your EMI payout is the Personal Loan EMI Calculator.
In general, the initial personal loan EMIs contribute more towards payment of the due interest as compared to the principal. However, in the due course of the tenure of the loan, subsequent EMIs contribute more towards repayment of principal amount.
There is a general mathematical formula used commonly by every financial institution for calculating the personal loan EMI. Hence, for a particular personal loan amount, tenure and interest rate, the EMI calculated and the amortization schedule offered by banks and other financial institutions will usually be similar and the pattern of reduction of personal loan principal amount through payment of each EMI will typically follow similar trends across all financial institutions.
Ease the tedious task of calculating your EMI with our personal loan EMI calculator. Get information regarding your loan payments and save money. Make an informed choice to successfully meet your financing needs. Know how much you need to pay toward you personal loan repayment. Plan in advance and pay off the loan amount that is due with ease! Personal loan EMI Calculator helps you to not only calculate your personal loan EMI but also your personal loan eligibility. This tool also displays the best personal loan offers as per your eligibility and requirements.
How it works?
Personal loan EMI calculator calculates EMI for personal loans on the basis of the inputs given by you. The EMI calculator asks for the following inputs related to your loan:
Loan Amount: The amount borrowed is the amount of the loan. The rate of interest is applied on this amount and is then divided into monthly EMIs according to the tenure of the loan. You can enter the loan amount into the EMI calculator according to your loan requirements. EMI or monthly installments should not be more than 40% of your monthly income.
Interest Rate: It is the Interest rate that is charged on the loan amount. Interest rate can be either fixed or floating in type. In case of fixed interest rate loans, the rate stays the same throughout the loan tenure, and each and every loan EMI is equal. However, in case of floating interest rate, the rates can vary from time to time according to the base rate and hence the EMIs vary.
Loan tenure is the time chosen by the applicant for repayment of the loan. Generally, the loan tenure ranges between 1 to 5 years. All banks offer flexible loan tenures which implies that the applicant has the power to choose the repayment tenure which best suits his needs. Generally personal loan tenures range from 1 to 5 years.
The personal loan EMI calculator works on two arithmetic formulae and includes two calculators, interest rate calculator and EMI calculator. The first calculation is simple and is used to calculate the monthly interest on personal loan and the second calculation is a complex one and is used to calculate the personal loan EMI.
Personal Loan Interest Calculator Calculates the Monthly Interest Rate
When you consider taking a loan, the first thing that comes to your mind is the rate at which interest is charged from you, and how to calculate EMI for personal loans. Every financial institution levies interest at a different rate and this interest rate that is being offered is an annual rate. In order to calculate your monthly EMI you will at first need to convert this annual rate into a monthly rate. The personal loan EMI calculator automated the steps associated with this process.
To convert the annual rate into a monthly rate, you will need to divide the annual interest rate by 12 i.e. if you are being charged interest at the rate of 20% per annum, then you will need to divide 20 by 12, which yields 1.66. This implies, that the monthly rate of interest on your loan will be charged at 1.66% per month. The interest rate calculator can be used to calculate the per month interest rate.
Personal Loan EMI Calculator Calculates EMI for Personal Loans
Personal loan EMI calculation is a long and tedious calculation, which can be a complex one for most of us. For calculating the EMI, you need to know the personal loan amount, the tenure you want to borrow the amount for and the interest rate on personal loan that you will be charged. The tenure of the loan should be converted to months before substituting it in the following formula for calculating the personal loan EMI.
To calculate the personal loan EMI the following formula is used:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1],
In this formula, the letter stands for:
EMI is the equated monthly installment
P is the principal or the amount that is borrowed as a loan
R is the rate of interest that is levied on the loan amount (the interest rate should be a monthly rate)
N is the tenure of repayment of the loan or the number of monthly installments that you will pay (tenure should be in months)
It is not easy to calculate personal loan EMI using Excel or by hand, as it is a complicated process. Hence, it is best to use a personal loan EMI calculator for the same. Using this calculator would save you from tedious calculation, wastage of time and also provide accurate results. It is an easy-to-use tool which can be used any number of times without a pause!
Benefits of using Personal Loan EMI Calculator
Personal loan EMI calculator can be used to calculate personal loan EMI before you plan to take a loan. This EMI calculator helps you assess your repayment capacity as it displays the EMI that you will have to pay each month if you borrow a personal loan of a given amount for a specified tenure at a pre-determined interest rate. Following are the key benefits of using such a calculator:
Personal loan EMI calculator saves you from tedious calculations
You can calculate EMI for personal loan using an Excel spreadsheet, but everyone is familiar with the hassles involved in such a calculation. Isn’t it easier to have a ready-made EMI calculation tool right at your disposal! Now with the Personal loan EMI calculator, you can determine EMIs accurately within seconds minus the tedious manual calculations and the additional stress involved.
Personal loan EMI calculator helps you calculate your personal loan EMI in seconds
This personal loan EMI calculator helps you arrive at an amount that you will have to pay towards your loan each month within no time. You just need to fill-in the required details regarding your loan and this EMI calculator instantly displays the EMI.
Personal loan EMI calculator helps you assess your repayment capacity and plan your finances well
When you enter key details of your loan, like loan amount, loan tenure and interest rate, the payable EMI is automatically displayed. This personal loan EMI is an important factor in deciding the loan amount which you are comfortable in repaying. EMI tells you how much money you will need to set aside from your monthly income. You can use the EMI calculator to reach an amount which you can pay back without straining your finances. Thus, EMI calculator can be a used as a tool for assessing your repayment capacity by varying the parameters of the loan, which include the loan amount, tenure and interest rate.
Personal loan EMI calculator displays a consolidated list of the best personal loan offers
Once you are done with your EMI calculations, you can click the “Get Quotes” button located right beneath the EMI calculation results. Clicking on this link takes you to another page where you can check your eligibility for the loan and also get the best personal loans according to your eligibility and requirements. Here you can compare the available options and make the correct choice.
How does PaisaBazaar’s Personal Loan EMI Calculator Work?
Paisa Bazaar’s personal loan EMI calculator is a handy tool for calculating the monthly installments that you will pay if you borrow a loan of a given amount, for a given tenure and interest rate. The EMI calculator is simple to use and involves the following simple steps:
For using our EMI calculator, you will need to have a plan in mind regarding the loan which you want to take. You will need to enter details like loan amount, loan tenure and interest rate into the EMI calculator. The moment you enter the details, it displays you EMI or monthly installments which you will have to pay if you borrow a loan with the given particulars. You can use the personal loan EMI calculator sliders to adjust the variables and reach an EMI which is comfortable for you to pay.
Once you are done with EMI calculations, you can check your eligibility for the loan using personal loan eligibility calculator. You will need to click on the “Get Quotes” button which is located below the calculated EMI. On clicking this button, you will be redirected to a page where you will be asked a few simple questions related to you, like you place of residence, income, company you work for, etc. Fill in these details to check which loans you are eligible for. The personal loan offers which have been sorted exclusively for you on the basis of your eligibility and requirements are displayed in a tabular form.
You can check the features of the different loan offers made to you and apply for the same at PaisaBazaar within minutes!
Paisabazaar Helps You To Get Your Hands On The Best Personal Loans Deals!
Leave aside the hassles to calculate EMI for personal loan using an Excel spreadsheet and enjoy an all new EMI calculator experience at PaisaBazaar. The personal loan EMI calculator at PaisaBazaar, lets you calculate your personal loan EMI Online in a quick and simple way. PaisaBazaar’s EMI calculation tool is easy-to-use and can be used for free any number of times! Following are the key steps in the process:
Get the best
Compare different loans against set parameters
Apply online for a loan
Personal Loans: An Introduction
A Personal Loan is an unsecured loan, sometimes referred to as an “All-purpose loan” as there is no restriction on the use of the loan amount. It caters to immediate cash requirements and is sanctioned in a faster time, which makes it a popular loan instrument. Personal loans are non-collateral loans as there is no security or collateral required to avail it. Offered by almost all banks across the country, you can get a personal loan with minimal documentation and quick loan disbursal.
If funding a vacation, wedding, home renovation or any similar thing is on your mind, then this type of loan is the best option to meet your needs. Taking a loan involves borrowing money and paying it back with the accrued interest over a pre-determined period of time. Whatever be your reason for availing a loan, before you decide your best option, it is very important to understand a few related terms like what are personal loans, types of personal loans, personal loan tenure, personal loan EMI and personal loan repayment, all this can be calculated through personal loan EMI calculator, it would give you accurate results and will prevent any mistakes.
With people becoming more and more tech savvy, and loan providers offering multiple options over the internet, a borrower need not go through the hassles of visiting the bank again and again in order to get a personal loan. Internet has opened up a new channel for the customers and a borrower seeking a loan need not to be physically present at the bank branch. Apply online for personal loans with PaisaBazaar and enjoy a host of other benefits, such as checking your personal loan eligibility, checking out the various offers for personal loans available in India, compare the best personal loan offers, calculate EMI for personal loans through personal loan EMI calculator as well as evaluate the personal loan you choose against different parameters to make the best choice.
Why go for a Personal Loan?
Financial crisis can strike any person anytime for different reasons regardless of your financial standing. Personal loans are a great way to manage such cash strapped situations. If you are in dire need of cash for any reason, such a loan might help you out, no matter what your income level. Such types of loan generally make up for immediate cash requirement as it comes with quick processing, minimum documentation and fast disbursal benefits. Moreover, the money can be used to fund any type of expense ranging from vacations to paying medical bills since there is no monitoring of the use of the personal loan amount. This gives flexibility to the borrower to use the loan amount according to his wish.
Personal Loan Features & Benefits
This type of loan is the ideal way to meet any of your emergency cash need, here’s why:
The most attractive feature of this loan is that it is an all-purpose loan; means there is no stipulated purpose for the loan. Whatever be the need, personal loan caters to all, right from home renovation to your dream vacation. Fulfill all your financial needs with a personal loan as you can avail it for any reason.
Ease Of Availability
Availability is another advantage. A majority of Public Sector Banks, Private Sector Banks and financial companies offer personal loans. It can be availed at reasonable interest rates which further makes it a popular loan option to meet any financial crisis.
Getting this loan does not involve long documentation procedures. Rather, it is known for bare minimum documentation leaving aside any long process of asset verification. The time taken for disbursing a personal loan is minimal as they require minimal documentation for loan approval. Along with the less documentation, it also possess lower EMIs because of its low interest rates as compared to other traditional loans, an applicant can also check the EMIs in advance through personal loan EMI calculator.
Personal loans are approved within a quick time period, sometimes as fast as 24-48 hours within submission of the loan application. This quick loan approval mechanism is one of the most attractive features of a personal loan. You can even apply online and loans are approved within a short time especially in case of online loan requests.
Flexible Loan Tenures
Personal loan tenure ranges between 1 to 5 years. The loan can be availed for a tenure as per your convenience as every bank offers flexible loan tenures which can be chosen by the borrower.
Being an unsecured loan, you need not worry about collateral or guarantors. A personal loan is sanctioned according to the creditworthiness of the borrower and hence does not require any security for the loan amount.
You can choose convenient repayment options, such as Bank a/c debit or ECS from your other bank or through post-dated cheques.
Charges associated with personal loan
More often than not, we overlook the fine details of a loan as we are so preoccupied with the main factors of a loan. But, overlooking these fine details can cost you heavily for the other charges involved also add to the loan amount and are important to consider before making the final choice. Applicant should always keep a track of all the charges he’s going to pay and should calculate his EMI in advance through personal loan EMI calculator. The following is a list of the associated charges:
Loan Processing charge
It is the amount charged for processing the loan application and is non-refundable in most cases. Processing charges vary from one bank to another and has to be deposited along with the loan application. The processing charge is generally a percentage of the loan amount around 1-2 %. However, some banks even charge flat processing charge of Rs 1000 to Rs 2000 or more.
If the borrower wants to pay off the loan before the tenure ends then he will have to pay a penalty charge termed as the prepayment penalty. Prepayment charge is a percentage of the outstanding balance of the loan amount. This charge can be anywhere between 2-5% of the outstanding amount. While some banks even waive prepayment charges and do not levy any penalty charge for prepayment.
Charges for late payment
If you fail to make the loan repayments on time, then bank levies late payment charges on the outstanding EMI repayments at a fixed rate which is decided at the time of sanctioning the loan. It is advised that a borrower should calculate the EMI payments through personal loan EMI calculator in advance and should have enough funds to repay the loan on time and avoid such late payment charges
Repayment Mode Swap charges
During the loan tenure, if the borrower wants to swap the mode of loan repayment, he can do so by paying a nominal charge, which is usually Rs. 500.
Cheque bounce charges
Cheque bounce charges are levied when the cheque presented for loan repayment is dishonored due to low account balance. Therefore, if the repayment mode for loan is through post-dated cheques, it must be ensured that there are sufficient funds in the account.
Loan cancellation charges
These charges are levied when the borrower cancels a loan. Usually there is a pre-defined period before which if a loan is cancelled, no loan cancellation charges are applied. The personal loan EMI calculator does take into account these charges.
Duplicate statements charges
Upon loan sanction, the lender issues a statement detailing the repayment schedule of the loan. In case the borrower loses it, he can ask for issue of a duplicate statement by paying a charge between Rs. 100 to Rs. 500.
Service tax is levied on service providers having annual revenue of over 8 lakh. Bank loans too fall under the category of service tax. Service tax is charged to the bank loan at the rate applicable as per prevailing rate.
Types of Personal Loans
Personal loans are typically of two types: unsecured and secured. Both the loans have different EMIs which can be calculated through a personal loan EMI calculator. A secured loan is backed by borrower’s asset, such as a house, plot of land or LIC policy and the lender has the authority to seize it if the loan is not repaid in full or on time. However, an unsecured loan does not need a security or backing and is granted according to the creditworthiness of the borrower. In general, Personal loans are of the unsecured type.
Unsecured Personal Loan
An unsecured personal loan sounds more attractive than a secured one because if you default on loan repayment, you will not have to worry about your asset being confiscated from you. However, the major drawback with an unsecured loan is that you are likely to pay interest at a rate higher than you would pay for a secured one.
Secured Personal Loan
A secured personal loan is commonly used to buy a vehicle and requires an asset to be surrendered as security for the loan. The advantage of a secured loan is that the interest rate on the loan is generally less than that of an unsecured loan as it is perceived as less of a risk by the banks. Having low interest rate would help you get lower EMIs which you can calculate through Personal loan EMI calculator and It is generally easier to get a secured loan, if you have had issues with your past financial record.
Best Personal Loans Available in India Based Upon Interest Rates
Personal Loan interest rates vary from one bank to another. The rate of interest on a personal loan which can be calculated with the personal loan EMI calculator is determined by certain factors, such as, the quantum of the loan, period for which loan is intended to be availed, income of the loan applicant, his work profile, etc. Rate of interest also vary between two individuals working at the same office and drawing the same salary.
Different banks charge different interest rates and these rates can either be fixed or floating type. Banks offering the best interest rates on personal loans have been listed below:
Factors That Affect Interest Rates on Personal Loans
Don’t forget to check out the following factors which can affect the interest rate on personal loans:
Credit Score: The credit score is a statistically derived number which details about the creditworthiness of a person. This score is used by personal loan provider to assess the repayment capacity of the borrower. A good credit score is build when the person has made timely repayment of his previous loans and credit card bills. If any person defaults on loan repayment or credit card bill payment, then his credit score is badly affected and moves towards the lower side. A low score can either lead to loan refusal or the loan borrower may be given a loan at a higher rate of interest. If you want to avail a loan at a cheaper interest rate, then you will need to have a good credit score.
Employment: Type of employment is another factor which decides the rate of interest which will be levied on the loan. Rate of interest on a personal loan varies in case of salaried and self-employed persons, however they can easily use the personal loan EMI calculator free of cost to estimate the monthly payouts. If the loan applicant is a salaried person working with the reputed company, then he might be offered a loan at a cheaper interest rate by the bank. However, if the applicant of the loan is working with a company that is not doing very well, then he might be charged a higher interest rate. Similar is the case with a self-employed professional, if his business is doing well and earning profits then his personal loan interest rate might be lower as compared to the other person whose business is not earning well.
Relationship between bank and customer: Having a previous relationship with your prospective lender can help you negotiate for your personal loan interest rate. If you are one of the bank's privileged customers, then the bank might allow you a better interest rate than others. The interest rate for a person holding a salary account with the bank might also be lower as compared to another.