Determine the optimum tenure and EMI for your personal loan using Paisabazaar’s Personal Loan EMI Calculator. The loan calculator would help you calculate EMI, interest cost and total amount payable against various loan amounts, interest rates and loan tenures in no time. Knowing EMI in advance would also help you plan your finances before taking a personal loan. Note that most lenders do not approve personal loan application if the overall EMI obligations, including the proposed EMI of the new loan, exceed 50% – 55% of his net monthly income.
Monthly EMI ₹ 15,622
Total Amount Payble ₹ 5,62,395(Principal + interest)
Principal Amount ₹ 5,00,000
Total Interest Payble ₹ 62,395
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Comparing personal loan EMIs of Leading banks and NBFCs
Loan amt. – 5 lakh
Tenure – 5 years
Loan amt. – 1 lakh
Tenure – 5 years
|HDFC Bank||10.25 onwards||10,685.13 onwards||2,137.03 onwards|
|Tata Capital||10.99 onwards||10,869 onwards||2,174 onwards|
|ICICI Bank||10.25 onwards||10,685.13 onwards||2,137.03 onwards|
|Bank of Baroda||10.00-15.60||10,624-12,053||2,125-2,410|
|Axis Bank||10.25 onwards||10,685.13 onwards||2,137.03 onwards|
|Kotak Mahindra Bank||10.75 onwards||10,685 onwards||2,137 onwards|
|Bank of India||9.35-12.35||10,464-11,211||2,093-2,242|
|Union Bank of India||8.90-13.00||10,355-11,377||2,071-2,275|
|Bajaj Finserv||13.00 onwards||11,377 onwards||2,275 onwards|
|Punjab & Sind Bank||9.50-11.50||10,501-10,996||2,100-2,199|
|South Indian Bank||10.35-18.10||10,709-12,723||2,141-2,544|
|IDFC First Bank||10.49 onwards||10,744 onwards||2,149 onwards|
|Bank of Maharashtra||9.45-12.80||10,489-11,325||2,098-2,265|
|Indian Overseas Bank||10.00-11.00||10,623-10,871||2,124-2174|
|IndusInd Bank||10.49 onwards||10,744 onwards||2,149 onwards|
What are the charges applicable on missing your personal loan EMI(s)?
On missing your personal loan EMI(s) payments, you might have to pay these charges over and above the actual EMI payable:
- Penal interest charges: These charges are also known as overdue interest charges and are levied on the overdue EMIs till the date of their repayment.
- Cheque/NACH/SI bounce charges: These charges are applicable when a personal loan EMI payment fails due to insufficient account balance or the closure of the account used for making EMI payments. This is usually a fixed charge levied each time an automated EMI deduction fails or the post-dated cheque bounces.
Can my personal loan EMI change during the loan tenure?
Yes, even though your personal loan EMI is usually a fixed amount, it can change during the loan tenure under certain circumstances:
- In case of loan prepayment: After prepaying your personal loan, you can either reduce EMIs for the same tenure or reduce the tenure for the same EMIs. So, you can choose to reduce EMIs if current EMI amount is causing strain in your finances. Otherwise, reducing tenure is more beneficial as doing so will reduce your loan’s overall interest cost.
- In case of rate change in the floating interest rate: Some lenders offer personal loans at floating rate of interest, which are linked to their external benchmark rates. When these benchmark rates change, the rate of interest applicable also changes. In case of an increase in the floating interest rate, if the borrower permits, the lender may extend the loan tenure while keeping the EMIs same. In case the new tenure goes beyond the maximum period permitted, then the lender may increase your EMI.
How to reduce personal loan EMI?
To reduce your personal loan EMI payments, you can consider:
- Making prepayments whenever possible: When you partly prepay a loan, you pay a portion of the outstanding loan amount early, which in turn gives you a choice to either reduce EMI or tenure. Go for lower EMIs only when you are struggling to repay your existing EMIs. If not, tenure reduction is wiser choice as it will help you save more on your loan’s overall interest cost.
A personal loan usually has a lock-in of one year after which you can make partial or full loan prepayments. Depending on the lender, prepayments may also incur prepayment charges.
- Transferring your personal loan: You can also consider transferring your personal loan to another lender offering lower interest rates. Some lenders may also offer longer tenure for personal loan balance transfer. But before opting for personal loan balance transfer, do a detailed cost-benefit analysis to ensure the amount you save on the interest is significantly higher than the costs incurred during the loan transfer.
Note, that your existing lender may charge prepayment/foreclosure fees, if the loan was availed at fixed interest rates. Additionally, the new lender may charge processing fee, administrative fee, etc. on the transferred loan.
What factors affect personal loan EMI?
The key factors affecting your overall EMI amount payable include the following:
- Loan Principal: The higher the amount borrowed as a personal loan, the higher will be your EMI as long as the tenure and interest rate remain constant
- Interest Rate: The higher the interest rate, the higher will be your individual EMI payout as well as the total interest payable on your personal loan
- Tenure: Opting for a longer tenure would lead to lower EMI, but would lead to higher interest cost
Q. What method of EMI calculation do most banks use?
Ans. Lenders usually use the reducing balance method to calculate the EMI applicable on a personal loan. It is advisable to confirm the same from the lender at the time of applying for the loan.
Q. How can I change my personal loan EMI date?
Ans. In case you want to change your personal loan EMI date, you should contact your lender. The process to initiate this change may vary from one lender to another.
Q. Does Paisabazaar’s personal loan EMI calculator include the GST component in its results?
Ans. GST is not applicable on the principal repayment or interest payment of the loan.
Q. What is amortisation schedule?
Ans. An amortization schedule is a table that displays the interest and principal components of your EMIs throughout the loan tenure.
Q. How can I pay my personal loan EMI?
Ans. You can pay your personal loan EMIs by issuing Standard Instructions (SI) or NACH mandate to your bank or by submitting post-dated cheques to your lender. Some lenders also offer the option of direct deduction of EMIs by your employer.