Customers can avail Punjab National Bank personal loan ranging between Rs. 50,000 to Rs. 10 lakh to meet various financial needs including medical expenses, home renovation, etc. Punjab National Bank personal loan interest rate starts as low as 10.75% p.a. The PNB personal loan EMI calculator lets you calculate loan EMIs even before you actually apply for a loan and helps you to manage your finances in a better way. Some key features of PNB personal loan EMI like the method used to calculate EMI, factors affecting the EMI amount, charges levied on non-payment of EMI, etc. are discussed below:
Table of Contents:
- Punjab National Bank Personal Loan EMI Calculator
- How an EMI Calculator Functions?
- EMI Calculation Formula
- Punjab National Bank Personal Loan EMI Calculation
- Flat Interest Rate v/s Reducing Balance Interest Rate
- How to pay Punjab National Bank Personal Loan EMI
- Factors Affecting Punjab National Bank Personal Loan EMI
- Benefits of Using EMI Calculator
- FAQs
Punjab National Bank Personal Loan EMI Calculator
Equated Monthly Installment (or EMI) is the amount of money that a borrower needs to pay every month to a lender (bank/NBFC) in order to repay a loan. You can use Punjab National Bank’s personal loan EMI calculator to assess the cost of a personal loan even before you apply for it and thereby, manage your finances in a better way. You can also use Paisabazaar’s personal loan EMI calculator to compute your loan EMIs for free. Loan principal, interest rate and tenure-key personal loan parameters can be used in varying combinations to reach the most suitable EMI for yourself.
How an EMI Calculator Functions?
The following 3 parameters are needed for the EMI calculator to function:
- Loan Amount: It is the principal amount that you borrow from Punjab National Bank. A higher amount generally results in higher EMI payouts. Customers can avail personal loans ranging between Rs. 50,000 to Rs. 10 lakh from PNB.
- Interest Rate: It is the rate at which interest is charged on the loan amount. PNB personal loan interest rate starts as low as 10.75% p.a. A higher interest rate typically results in higher EMIs over the tenure of the loan.
- Loan Tenure: It is the time period over which you can repay the loan. PNB personal loans come with a repayment tenure ranging between 12 to 60 months. A shorter repayment tenure generally leads to higher EMI payouts. However, it lets you save on the total interest payout of the loan.
Personal Loan EMI Calculation Formula
The method that the lender uses to calculate interest-either the flat rate method or the reducing balance method, determines the formula used to calculate personal loan EMIs. The 2 methods of EMI calculation are explained below:
- Flat Rate Method: When the flat rate method of interest calculation is used, the EMI amount remains the same throughout the tenure of the loan. This is because as per this method interest is calculated on the entire loan principal amount borrowed by the applicant. Therefore, according to this method the formula for EMI calculation is:
EMI by Flat Rate Method = (Principal + Interest)/ Loan Tenure in Months
For instance: Mr. X took a loan of Rs. 50,000 at a flat rate of interest of 11% for a period of 12 months.
Interest for year 1 = 11% per annum of Principal = 11% of Rs. 50,000= Rs. 5,500
Total interest payable over the loan tenure = Rs. 5,500
Monthly EMI payouts for Mr. X= (Rs. 50,000 + Rs. 5,500)/12 = Rs. 4,625
- Reducing Balance Method: When interest is calculated using the reducing balance method, the EMI amount decreases over the loan tenure as interest is charged only on the outstanding loan principal amount (which decreases as the loan is paid off) rather than on the entire loan amount borrowed initially. Thus, interest calculation done using the reducing balance method enables customers to save on the total interest payable. As per this method, the formula for EMI calculation 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 refers to the rate of interest on a monthly basis i.e. annual interest rate/12;
N refers to the loan repayment tenure in months.
For instance: Mr. Y takes a loan of Rs. 50,000 at a reducing balance interest rate of 11% p.a. for a period of 12 months.
Monthly interest rate = Annual interest rate/ 12 = 11/12 = 0.92% per month
Monthly EMI payout for Mr. B= [50,000 x 0.0092 x (1+0.0092)^12]/(1+0.0092)^(12-1)] = Rs. 4,419
Punjab National Bank Personal Loan EMI Calculation
The EMI payable on PNB personal loans is calculated using the reducing balance method of interest calculation. EMI calculation for PNB personal loans using varying combinations of loan amount, tenure and interest rate is given below:
| Loan Amount (Rs.) | Interest Rate (p.a.) | Tenure (months) | EMI (Rs./month) |
| 50,000 | 11% | 12 | 4,419 |
| 2 lakh | 13% | 36 | 6,739 |
| 5 lakh | 15% | 24 | 24,243 |
| 7 lakh | 17% | 60 | 17,397 |
| 10 lakh | 20% | 48 | 30,430 |
Comparison of EMI Calculation Methods: Flat Interest Rate v/s Reducing Balance Interest Rate
The following table gives a comparison of the difference in EMI payouts when interest is calculated using the flat rate method v/s when the reducing balance method is used for various loan amounts, interest rates and tenures:
| Loan Amount (Rs.) | Loan Tenure (months) | Interest Rate (p.a.) | EMI using Flat Rate method (Rs.) | EMI using Reducing Balance method (Rs.) |
| 50,000 | 12 | 11% | 4,625 | 4,419 |
| 2 lakh | 36 | 13% | 7,722 | 6,739 |
| 5 lakh | 24 | 15% | 27,083 | 24,243 |
| 7 lakh | 60 | 17% | 21,583 | 17,397 |
| 10 lakh | 48 | 20% | 37,500 | 30,430 |
How to pay Punjab National Bank Personal Loan EMI
The following modes of payment can be used to pay PNB personal loan EMIs:
- ECS (Electronic Clearance Service) facility
- Via Net Banking
- Post Dated Cheques/Demand Draft submitted to the bank
Factors Affecting Punjab National Bank Personal Loan EMI
Some key factors which affect PNB personal loan EMIs are discussed below:
- Loan Amount: The amount of money that you borrow from the lender is known as loan amount/loan principal. Generally, as the loan amount increases, the EMI payout also increases and vice versa.
- Interest Rate: It is the rate at which interest is charged on the loan amount by the lender. Generally a higher interest rate leads to higher EMI payouts.
- Loan Tenure: It is the period over which the repayment of the loan can be done. Usually, a shorter repayment tenure results in higher EMI payouts. However, it may lead to lower interest payout.
- Interest Calculation Method: The method used to calculate interest also affects the EMI payouts. EMIs computed using the reducing balance method are slightly lower as compared to EMIs calculated using the flat rate method.
Benefits of Using an EMI Calculator
Some important benefits of using an EMI calculator are discussed below:
- An EMI calculator lets you determine the monthly EMIs even before you apply for a loan. This aids in better planning of finances and lets you decide upon a loan amount and tenure as per your budget.
- It lets you save a lot of time as you no longer have to carry out tedious mathematical calculations manually. An EMI calculator gives you results instantly simply by specifying the loan amount, tenure and interest rate.
- An EMI calculator makes use of computerized algorithms to give error-free results. And therefore, is more accurate and reliable when compared to manual calculations done by hand.
- You can use the EMI calculator anytime and anywhere free of cost. Also, as there is no limit to the number of times that you can use the calculator, it enables you to compare EMI amounts of different personal loans from several lenders before finalizing upon the most suitable option for yourself.
FAQs
Q1. Can I pay my PNB personal loan EMIs online?
Yes, you can pay your PNB personal loan EMIs online via Net Banking.
Q2. Is there an option to autopay my PNB personal loan EMI?
Yes, you can choose to autopay your PNB personal loan EMIs by opting for the ECS facility.
Q3. Does the EMI calculator show the prepayment charges?
No, the EMI calculator does not show the prepayment charges. However, you can check the prepayment charges in the loan agreement provided by the lender.
Q4. What is floating rate EMI calculation?
Floating interest varies with market fluctuations and changes in RBI policies. So when EMIs are calculated using floating interest rate it is known as floating rate EMI calculation. For example, the repo rate influences Repo Linked Lending Rate (RLLR). Whenever RBI changes the repo rate, a similar change is reflected in the loan interest rate. Currently the floating interest rate mechanism is not applicable to PNB personal loans.
Q5. Can PNB personal loan EMIs be paid in cash?
No, PNB personal loan EMIs cannot be paid in cash.
Q6. How to use the EMI calculator?
Paisabazaar’s personal loan EMI calculator can used by simply following the steps given below:
Step1: Access Paisabazaar’s EMI calculator.
Step2: Enter the loan amount, loan tenure and interest rate.
Step3: The calculator instantly gives you the EMI amount.
Q7. How to arrive at the right EMI amount?
You can arrive at the most suitable EMI for yourself by using the EMI calculator to check different combinations of loan amount, tenure and interest rate. Consider all your outstanding debt and monthly expenditure before finalizing upon the most suitable EMI for yourself that you can easily pay off without disturbing your financial stability.
Q8. Is it possible to reschedule/postpone my EMI?
No, it is not possible to postpone or reschedule your Punjab National Bank personal loan EMI.