IndusInd Bank offers personal loans to both salaried and self-employed individuals/professionals to deal with any personal financial need including travel, consumer durables purchase, medical expenses, home renovation, etc. IndusInd Bank currently offers personal loans ranging from Rs. 50,000 to Rs. 15 lakhs at attractive interest rates starting at 10.75% p.a. payable through EMI (equated monthly installments). Some key aspects of IndusInd Bank personal loan EMI like its method of calculation, factors affecting the EMI amount, charges levied on non-payment of EMI, EMI payment options, etc. are discussed below:
Table of Contents:
- IndusInd Bank Personal Loan EMI Calculator
- How does an EMI Calculator Function?
- Personal Loan EMI Calculation Formula
- IndusInd Bank Personal Loan EMI Calculation
- Flat Balance v/s Reducing Balance Interest Rate
- How to pay IndusInd Personal Loan EMI
- Cheque Bounce Charges and Penal Interest Charges
- Factors Affecting IndusInd Personal Loan EMI
- Benefits of Using EMI Calculator
- FAQs
IndusInd Bank Personal Loan EMI Calculator
The amount of money that a borrower needs to pay to the lender every month in order to repay a loan is known as EMI or Equated Monthly Installment. Paisabazaar’s personal loan EMI calculator is a free online tool that lets you estimate your monthly EMI before applying for a personal loan. The essential elements of the IndusInd Bank personal loan EMI calculator are the same as the generic calculator offered by various websites. The calculator requires you to provide 3 key personal loan parameters – loan principal, interest rate and tenure to calculate your EMIs instantly. You can use varying combinations of these loan parameters to reach the most convenient EMI for yourself.
How does an EMI Calculator Function?
An EMI calculator functions on the basis of the following 3 parameters:
- Loan Amount: It is the principal amount that you borrow from IndusInd Bank. Generally, a higher amount leads to a higher EMI. IndusInd Bank offers personal loans ranging between Rs. 50,000 to Rs. 15 lakh.
- Interest Rate: It is the rate at which interest is charged on the loan amount sanctioned. IndusInd Bank personal loan interest rate starts at as low as 10.75% p.a. A higher rate of interest leads to higher EMI payouts over the tenure of the loan.
- Loan Tenure: It is the period over which you can repay the loan. Personal loans offered by IndusInd Bank come with a repayment tenure ranging between 12 to 60 months. A shorter tenure generally results in higher EMI payouts, but helps you save on the total interest payout for availing the loan.
Personal Loan EMI Calculation Formula
The formula used to calculate personal loan EMIs can differ based on the method of interest calculation opted for by the lender. The available options are flat balance rate method and reducing balance method. The following section will help us understand these 2 different methods of EMI calculation:
- Flat Rate Method: When interest is calculated using this method, interest is charged on the complete loan principal borrowed over the entire loan tenure. Therefore, according to this method the formula for EMI calculations is:
EMI calculated by Flat Rate Method = (Principal + Interest)/ Loan Tenure in Months
EMI by Flat Rate Method = (Principal + Interest)/ Loan Tenure in Months
For instance : Mr. A took a loan of Rs. 10 lakh at a flat rate of interest of 15% for a period of 12 months.
Interest for year 1 = 15% per annum of Principal = 15% of Rs. 10 lakh = Rs. 1.5 lakh
Total interest payable over the loan tenure = Rs. 1.5 lakh
Monthly EMI payouts for Mr. A= (Rs. 10 lakh + Rs. 1.5 lakh)/12 = Rs. 95,833
- Reducing Balance Method: As per this method, the amount of EMI payable keeps decreasing over the loan tenure as interest is charged on the outstanding loan principal amount (which keeps decreasing as the loan is paid off) rather than on the entire loan amount initially borrowed. Therefore, the reducing balance method enables you to save on the total interest payable. As per this method, the formula for EMI calculations is as follows:
EMI by Reducing Balance Method = [P x (R/100) x {1+(R/100)}^N]/[{1+(R/100)}^(N-1)]
Where,
P = the principal/loan amount;
R = the rate of interest on a monthly basis i.e. annual interest rate/12;
N = the loan repayment tenure in months.
For instance: Mr. B takes a loan of Rs. 1 lakh at a reducing balance interest rate of 12% p.a. for a period of 24 months.
Monthly interest rate = Annual interest rate/12 = 12/12 = 1% per month
Monthly EMI payout for Mr. B= [100,000 x 0.01 x (1+1)^24]/(1+1)^(24-1)] = Rs. 4,707
IndusInd Bank Personal Loan EMI Calculation
IndusInd Bank makes use of the reducing balance method to compute the EMI payable on its personal loans. The subsequent table depicts EMI calculation for IndusInd Bank personal loans using varying combinations of loan amount, interest rate and repayment tenure:
| Loan Amount (Rs.) | Interest Rate (p.a.) | Tenure (months) | EMI (Rs./month) |
| 50,000 | 11.25% | 12 | 4,425 |
| 2 lakh | 13% | 24 | 9,508 |
| 7 lakh | 12% | 36 | 23,250 |
| 10 lakh | 18% | 48 | 29,375 |
| 15 lakh | 20% | 60 | 39,741 |
Comparison of EMI Calculation Methods: Flat Balance v/s Reducing Balance Interest Rate
The table below gives a comparison of the difference in EMI payouts when using the flat balance interest calculation method v/s when the reducing balance method is used for different loan amounts, interest rates and loan tenures:
| Loan Amount (Rs.) | Loan Tenure (months) | Interest Rate (p.a.) | EMI using Flat Rate method (Rs.) | EMI using Reducing Balance method (Rs.) |
| 15 lakh | 60 | 20% | 50,000 | 39,741 |
| 10 lakh | 36 | 15% | 40,278 | 34,665 |
| 5 lakh | 48 | 13% | 15,833 | 13,414 |
| 3 lakh | 24 | 14% | 16,000 | 14,404 |
| 50,000 | 12 | 12% | 4,667 | 4,442 |
How to pay IndusInd Personal Loan EMI
You can pay your IndusInd Bank personal loan EMIs using the following modes of payment:
- ECS (Electronic Clearing Service)/NACH madate
- Standing instructions for auto debit from your IndusInd Bank account
- Internet Banking (via BillDesk) from different Bank Account.
Charges levied on Non Payment of EMI – Cheque Bounce Charges and Penal Interest Charges
IndusInd Bank levies a few charges in case personal loan EMI payments are not made on time. Some of those penal charges are:
| Payment Dishonor Charges (Cheque/ECS bounce) | Rs. 450 plus tax |
| Penal Charges (Late payment of EMI) | Rs. 150 plus taxes, per EMI delay beyond 5 days |
Factors Affecting IndusInd Personal Loan EMI
Some key factors which affect IndusInd personal loan EMIs are discussed below:
- Loan Amount: The amount of money that you borrow from the lender is referred to as the loan amount/loan principal. A higher loan amount leads to a greater EMI payout.
- Loan Tenure: The period of time over which the loan can be repaid is known as the loan tenure. Typically, a longer repayment tenure leads to lower EMI payouts. However, it may also result in greater interest payout.
- Interest Rate: It is the rate of interest charged by the lender on the loan amount. Generally a higher rate of interest leads to higher EMI payouts.
- Interest Calculation Method: The method used to compute personal loan EMIs also affects the amount of interest payable. EMI computed using the reducing balance method is slightly lower as compared to when EMI is computed using the flat rate method.
Benefits of Using an EMI Calculator
Given below are some important advantages of using an EMI calculator:
- Better Planning of Finances: EMI calculator enables you to know the monthly EMI payout before you avail the loan. This helps in better planning of finances and enables you to choose a loan amount and tenure according to your budget.
- Convenient: The EMI calculator can be used anytime and anywhere for free. You can also compare EMI payable for different personal loans offers from various lenders as there is no limit to the number of times that you can use the calculator.
- Saves Time: You no longer have to do tedious mathematical calculations by hand to compute EMI payable and this can save a lot of time/effort. Once you specify the loan amount, interest rate and tenure you can get instant results using an EMI calculator.
- Accurate and Reliable: As compared to calculations done by hand, an EMI calculator is more reliable and accurate as computerized algorithms give error-free results.
FAQs
Q1. Is there an option to autopay my IndusInd Bank personal loan EMI?
Yes, customers can either opt for the ECS/NACH mandate or give standing instructions to debit their IndusInd Bank account with the EMI amount.
Q2. Does the EMI calculator also show the prepayment charges?
No, the personal loan EMI calculator does not take prepayment charges into account when making the calculation. However, you can check the prepayment charges in the loan agreement provided by the lender and separately add it to the overall charge of the loan.
Q3. What is floating rate EMI calculation?
Floating rate EMI calculation means that EMIs are computed using floating interest rate i.e. the rate varies over the loan tenure. In this case, the interest rate is variable in nature and depends on market fluctuations and RBI policies. For example, Repo Linked Lending Rate (RLLR) home loan is based upon changes in repo rate. Whenever RBI changes the repo rate, a similar change is liable to be reflected in the loan interest rate. Floating interest rate mechanism is at present not applicable to IndusInd Bank personal loans.
Q4. Can IndusInd Bank personal loan EMIs be paid in cash?
No, IndusInd Bank personal loan EMIs cannot be paid in cash.
Q5. What are the maximum values that I can enter for loan amount and loan tenure in the IndusInd personal loan EMI calculator?
Customers can compute EMIs for personal loans up to Rs. 25 lakh and for tenure ranging up to 60 months using Paisabazaar’s IndusInd personal loan EMI calculator. However, personal loan tenure generally ranges between 12 to 60 months.
Q6. How to use the EMI calculator?
You can use Paisabazaar’s personal loan EMI calculator using the steps given below:
- Access the Paisabazaar EMI calculator.
- Enter the loan amount, interest rate and tenure.
- The calculator instantly displays the EMI amount on the right hand side of the page.
Q7. How to arrive at the right EMI amount?
You can use an EMI calculator to check different combinations of loan amount, tenure and interest rate to find the EMI amount that suits you. Take into account all your outstanding debt and monthly expenditure to finalize upon a convenient EMI amount that can be easily paid off with minimal impact to your financial stability.