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 lakh at attractive interest rates starting at 11.00% 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:
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.
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)|
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|
|EMI using Reducing Balance method|
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.
Q1. 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.
Q2. 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.
Q3. What are the maximum values that I can enter for loan amount and loan tenure in the IndusInd Bank personal loan EMI calculator?
Customers can compute EMIs for personal loans up to Rs. 15 lakh and for tenure ranging up to 60 months using IndusInd Bank’s personal loan EMI calculator.