Personal Loan EMI Calculator will help you to find out your Personal Loan EMI and interest cost based on your loan amount, tenure and interest rate. It will help you to choose your loan amount and loan tenure based on your repayment capacity.
Tips for using Personal Loan EMI Calculator
- A higher loan amount and/or a higher interest rate will increase your EMI and total interest cost and vice versa
- A longer loan tenure will reduce your EMI while increasing your overall interest cost and vice versa
- Lenders usually prefer to lend to loan applicants whose total EMI obligations including existing EMIs and the EMI of their new loan do not exceed 50-60% of their monthly income
Monthly EMI ₹ 15,622
Total Amount Payble ₹ 5,62,395(Principal + interest)
Principal Amount ₹ 5,00,000
Total Interest Payble ₹ 62,395
Monthly EMI Payment Comparison of Popular Banks in India
Given below is a comparison of the monthly payments (EMIs) of popular banks in the country for different loan amounts, tenures and interest rates:
| Bank Name and Interest Rate | EMI Payout for Loan Tenure of 1 Year | ||
| Loan Amount of Rs. 1 lakh | Loan Amount of Rs. 3 lakh | Loan Amount of Rs. 5 lakh | |
| SBI @ 9.60% p.a. | Rs. 8,773 | Rs. 26,319 | Rs. 43,865 |
| ICICI @ 10.50% p.a. | Rs. 8,815 | Rs. 26,445 | Rs. 44,074 |
| Axis @ 11% p.a. | Rs. 8,838 | Rs. 26,514 | Rs. 44,191 |
| HDFC @ 12.50% p.a. | Rs. 8,908 | Rs. 26,725 | Rs. 44,541 |
| Citibank @ 9.99% p.a. | Rs. 8,791 | Rs. 26,373 | Rs. 43,956 |
| PNB @ 8.95% p.a. | Rs. 8,743 | Rs. 26,228 | Rs. 43,714 |
Personal Loan EMI Calculation
A personal loan EMI calculator lets you compute your EMIs instantly by simply entering the loan amount, interest rate and tenure. Knowing your monthly EMI payouts in advance can help you in better financial planning and management of finances.
The following table illustrates the difference in EMI payments for various loan amounts over different loan tenures:
| Loan Amount (Rs.) | Interest Rate (p.a.) | EMI for 1 Year Tenure (Rs.) | EMI for 2 Year Tenure (Rs.) | EMI for 3 Year Tenure (Rs.) | EMI for 4 Year Tenure (Rs.) | EMI for 5 Year Tenure (Rs.) |
| 1 lakh | 11.50% | 8,862 | 4,684 | 3,298 | 2,609 | 2,199 |
| 2 lakh | 12.5% | 17,817 | 9,461 | 6,691 | 5,316 | 4,500 |
| 3 lakh | 12% | 26,655 | 14,122 | 9,964 | 7,900 | 6,673 |
| 4 lakh | 13% | 35,727 | 19,017 | 13,478 | 10,731 | 9,101 |
| 5 lakh | 12.5% | 44,541 | 23,654 | 16,727 | 13,290 | 11,249 |
Factors Affecting 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 – When a longer tenure is opted for, individual EMI payments will decrease as compared to a shorter tenure for the same loan. But a longer tenure also results in higher total interest payable over the loan tenure
Besides, the method of interest calculation adopted by a lender also affects the EMI payable on a personal loan. The flat balance method of interest calculation involves calculating interest on the entire loan principal amount throughout the loan tenure. Thus, in this case, the EMI amount remains unchanged during the entire loan tenure.
The reducing balance method involves computing interest only on the outstanding loan principal amount for each successive month instead of the entire amount initially borrowed. As a result, the principal used to calculate interest decreases over time leading to a decrease in the successive loan EMI as the repayment tenure progresses. Currently, most banks offer personal loans based on the reducing balance interest calculation method and the same method is used by Paisabazaar’s online personal loan EMI calculator.
FAQs
Q. How to arrive at the right EMI amount?
You should first analyse how much you can afford to pay in EMIs every month. Based on this data, you can check EMI for different tenures at a fixed rate of interest. Select the best feasible EMI to repay your loan with minimum difficulties.
Q. What method of EMI calculation do most banks use?
Most lenders use the reducing balance method to calculate the EMI applicable on a loan. It is advisable to confirm the same from the lender at the time of applying for the loan.
Q. How to reduce personal loan EMI?
Given below are a few key ways that can be helpful in reducing the EMI payable on your personal loan:
- Opt for a lower loan amount
- Opt for a longer EMI tenure
- Get approved for a loan with a lower interest rate/complete a personal loan balance transfer to get a lower rate on the outstanding loan
Q. How can I change my personal loan EMI date?
In case you want to change your personal loan EMI date, you should contact the customer care of your lender and follow the instructions provided by them. The process to initiate this change varies significantly from one lender to another.
Q. Can I get my personal loan EMI changed?
There are two key ways you can decrease your existing personal loan EMI:
Option 1- Make a prepayment on your existing loan. This will decrease the outstanding personal loan principal leading to a lower EMI payout over the remainder of the loan tenure.
Option 2- Negotiate with the lender for an extension of your loan tenure. This will decrease your individual personal loan EMI payout but increase your overall interest payment over the loan tenure.
Q. Does the personal loan EMI calculator include the GST component in its results?
No. Currently, Paisabazaar’s EMI calculator does not take into account the GST component when calculating the EMI on a loan.