Bank of India (BoI) offers personal loans up to Rs. 10 lakh through different schemes to cater to the varying needs of diverse categories of applicants. However, before availing a personal loan it is necessary to know the EMI payout to avoid any financial hassles later on. The article discusses how an EMI calculator can help you calculate the EMI payout instantly and other key aspects relating to Bank of India personal loan EMI such as its calculation method, ways to make EMI payments and so on.
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How Bank of India Personal Loan EMI Calculator Functions
Are you planning to avail a personal loan from Bank of India or perhaps you have already applied for one and want to know the monthly EMI payout. Bank of India’s personal loan EMI calculator is a handy online tool that lets you know the EMI payout even before you apply for a loan and helps in better management of finances. Alternatively, you can also use the Paisabazaar personal loan EMI calculator to compute your personal loan EMI instantly and for free. The EMI calculator lets you try various combinations of loan parameters to arrive at the most suitable EMI for yourself.
The following 3 key parameters are used by an EMI calculator to calculate your EMI payout instantly:
- Loan Amount: It refers to the principal amount borrowed. Usually, a higher loan amount translates into higher EMI payouts if the interest rate and tenure are kept constant. Bank of India offers personal loans ranging up to Rs. 10 lakh.
- Loan Tenure: This refers to the repayment period of your personal loan. The loan tenure for Bank of India personal loan varies from 12 months to 60 months. Keep in mind that often a longer tenure means lower EMIs but may increase the overall interest payout of the loan.
- Interest Rate: It refers to the rate at which interest is charged on the loan amount. Bank of India personal loan interest rate starts at 9.35% p.a. Usually an increase in the interest rate results in higher EMI payouts and vice versa. Moreover, the EMI payout also varies with the method of interest calculation used by the lender.
Personal Loan EMI Calculation Formula
The EMI payout of your personal loan also varies with the interest calculation method adopted by the lender. Read on to find out about the two key methods of interest calculation and how they affect the EMI payout:
- Flat Rate Method: This method involves computing interest on the entire loan principal amount borrowed initially. Therefore, the EMI amount remains the same throughout the loan tenure. According tos this method, the EMI calculation formula is:
EMI by Flat Rate Method = (Principal + Interest)/ Loan Tenure in Months
For example: Mr. Ashok availed a loan of Rs. 5 lakh at a flat rate of interest of 10% for a period of 12 months.
Interest for 1 year = 10% of Principal = 10% of Rs. 5 lakh = Rs. 50,000
Total interest payable over the loan tenure = Rs. 50,000
EMI = (Rs. 5 lakh + Rs. 50,000)/12 = Rs. 45,833
- Reducing Balance Method: This method involves computing interest only on the outstanding loan amount and not on the entire loan amount borrowed initially. Thus, this method may enable you to save on the total interest payout of the loan. As per this method, the EMI calculation formula is:
EMI by Reducing Balance Method = [P x (R/100) x {1+(R/100)}^N]/[{1+(R/100)}^(N-1)]
Where,
P refers to the principal loan amount
R = Rate of interest on a monthly basis, that is, Annual interest rate/12
N = Loan tenure in months
For example: Mr. Brijesh availed a loan of Rs. 5 lakh at a reducing balance interest rate of 10% for a period of 12 months.
Monthly interest rate = Annual interest rate/12 = 10/12 = 0.83% per month
Monthly EMI payout = [5,00,000x 0.0083 x (1+0.0083)^12 /(1+0.0083)^(12-1)] = Rs. 43,958
Monthly EMI Payment Comparison of Popular Banks in India
The following table gives a comparison of the monthly EMI payments of popular banks in India for different combinations of loan amount, interest rate and tenure:
| Bank Name and Interest Rate | EMI Payout for Loan Tenure of 1 Year | ||
| Loan Amount of Rs. 1 lakh | Loan Amount of Rs. 5 lakh | Loan Amount of Rs. 10 lakh | |
| Bank of India @ 9.35% p.a. | Rs. 8,761 | Rs. 43,807 | Rs. 87,614 |
| HDFC @ 12.50% p.a. | Rs. 8,908 | Rs. 44,541 | Rs. 89,083 |
| Citibank @ 9.99% p.a. | Rs. 8,791 | Rs. 43,956 | Rs. 87,911 |
| Axis @ 11% p.a. | Rs. 8,838 | Rs. 44,191 | Rs. 88,382 |
| SBI @ 9.60% p.a. | Rs. 8,773 | Rs. 43,865 | Rs. 87,730 |
| ICICI @ 10.50% p.ae. | Rs. 8,815 | Rs. 44,074 | Rs. 88,149 |
Bank of India Personal Loan EMI Calculation
Bank of India makes use of the reducing balance method to calculate the EMI payable on its personal loans. The following table gives different possible EMIs with varying combinations of loan amount, tenure and interest rate.
| Loan Amount (Rs.) | Interest Rate (p.a.) | Tenure (months) | EMI (Rs./month) |
| 1 lakh | 10% | 12 | 8,792 |
| 2 lakh | 12% | 24 | 9,415 |
| 3 lakh | 13% | 36 | 10,108 |
| 4 lakh | 15% | 48 | 11,132 |
| 5 lakh | 20% | 60 | 13,247 |
How to Pay Bank of India Personal Loan EMI?
You can pay your Bank of India personal loan EMIs through the following payment modes:
- ECS mandate drawn on a bank other than BoI
- Standing instruction on BoI account
- Cheque/Draft deposit
- RTGS/NEFT transfer from other bank
Factors Affecting Bank of India Personal Loan EMI
Some key factors which affect Bank of India personal loan EMI are given below:
- Loan Amount: It refers to the principal amount that you borrow from the lender. Generally an increase in the loan amount leads to an increase in the EMI payout and vice versa (provided other loan parameters are kept constant).
- Interest Rate: It is the rate at which the lender charges interest on the amount borrowed. Generally a higher interest rate results in higher EMIs.
- Loan Tenure: It is the time period over which you can repay the loan. Generally a longer loan tenure results in lower EMI payouts. However, it can result in an increase in the total interest payout of the loan.
- Interest Calculation Method: The EMI amount also varies with the method of interest calculation adopted by the lender. EMIs calculated using the flat rate method are often slightly higher than those computed using the reducing balance method.
FAQs
Q1. Does Bank of India personal loan EMI calculator show the prepayment charges?
No, the BoI EMI calculator does not show the prepayment charges. However, you can check the prepayment charges in the loan agreement provided by the Bank of India.
Q2. What will happen if I miss my Bank of India personal loan EMI payment?
In case you miss an EMI payment, penal interest will be charged on the overdue amount and your credit score can fall particularly if you miss multiple EMI payments.
Q3. How many EMIs do I have to pay in order to repay my Bank of India personal loan?
Bank of India personal loan repayment tenure can vary between 12 to 60 months, that is, you will have to repay your loan in maximum 60 EMIs. However, the number of EMI payouts on your personal loan depends upon the loan tenure and the personal loan variant that you have chosen.