What is Personal Loan EMI?
Personal Loan EMI is the amount that is payable in monthly instalments by the borrower until the end of the repayment tenure. The monthly instalments include both the interest component of the loan and the principal amount. The EMI remains the same throughout the tenure in the case of personal loans availed at fixed interest rates.
What is RBL Bank Personal Loan EMI Calculator?
RBL Bank Personal Loan EMI Calculator is an online tool offered by RBL Bank that allows borrowers to calculate the personal loan instalment amount to be paid every month. The EMI amount would vary on the basis of the personal loan amount, interest rate and repayment tenure opted by the applicant. Alternatively, applicants can also use Paisabazaar’s Personal Loan EMI Calculator to determine their optimum tenure and EMIs for RBL Bank Personal Loan on the basis of their repayment capacity.
How do I select the ROI for the RBL Bank Personal Loan EMI Calculator?
RBL Bank Personal Loan EMI Calculator offers personal loan applicant the option of selecting an ROI from a wide range of interest rates. Borrowers can select different combinations of loan amounts, interest rates and tenures to know their respective EMIs for each combination. However, the borrower should note that the final ROI offered for a personal loan will be determined based on his personal loan eligibility, which is dependent on various factors such as your monthly income, age, occupation profile, credit score, repayment capacity, etc.
Personal Loan Interest Rate Comparison of different Banks
|Kotak Mahindra Bank
Factors Affecting RBL Bank Personal Loan EMI
RBL Bank Personal Loan comes with a loan tenure of up to 5 years. Availing personal loans for shorter repayment tenures would result in higher EMIs but could lead to lower interest costs. However, the situation is inversely proportional if the applicant opts for a longer repayment tenure. Hence, in order to plan finances better, it is crucial to know the EMI in advance and opt for tenure primarily on the basis of your repayment capacity.
Personal loans availed at lower interest rates would result in lower EMIs and lower interest costs and vice versa. Most banks/NBFCs offer preferential interest rates to loan applicants who have exiting relationship with the respective banks or NBFCs. Thus, before submitting application form, the personal loan applicant should compare the personal loan interest rates of top banks and NBFCs before applying for RBL Bank Personal Loan.
The bigger the loan amount, the higher would be the EMIs and the overall interest cost. Applicants should note that personal loan eligibility amount would primarily depend on their ability to repay the loan and repayment tenure.
Benefits of Using RBI Personal Loan EMI Calculators
The main benefits of using the online RBL Bank Personal Loan EMI Calculators are mentioned below:
Ease of Access
RBL Bank Personal loan EMI Calculator helps applicants calculate the monthly instalments hassle-free. An applicant just need to enter the personal loan interest rate, principal loan amount and tenure in the EMI calculator to know the actual value of their monthly instalments.
Provides Quicker and Accurate Results
RBL Bank Personal EMI Calculator allows applicants to determine EMI payable for their personal loans without going through complex calculations using numerous formulas. Additionally, the calculator also provides loan applicant the accurate monthly instalment amount because there is nil scope of human errors that comes with manual calculations.
The monthly instalments remain constant during the entire repayment tenure if the applicant has availed personal loans with fixed interest rates. In this case, applicant can regulate their monthly expenses as they can know the exact EMI amount by using the calculator.
Improve Personal Loan Eligibility
Most banks and NBFCs usually approve loan applications of individuals whose total EMIs, including the EMI of the new personal loan, does not exceed 50% – 60% of their monthly income. As personal loan applicants can get an idea of their instalments by using the RBL Bank Personal Loan EMI Calculator, those exceeding the above-stated limit can opt longer personal loan repayment tenures or/and lower personal loan amounts to reduce the EMI while applying for personal loans. Doing so can help such loan applicants increase their chances of personal loan approval.
Healthy Credit Scores
Personal loan borrowers who have already calculated their EMIs using the calculator would be better prepared to handle their daily finances in order to repay their personal loans within the given loan tenure. Thus, such applicants would have less chances to make default on their EMIs. This in turn would help applicants to improve or maintain their credit scores.
Considering the above mentioned benefits, you should use the RBI Bank Personal EMI Calculator to determine the optimum EMIs and loan tenure for your personal loan based on your repayment capacity. You can also use Paisabazaar’s Personal Loan EMI Calculator to compare and determine the personal loan EMIs of other lenders as well.
Frequently Asked Questions (FAQs)
Q1. Which method of EMI calculation does RBL Bank use?
RBL Bank uses the reducing balance method of interest calculation, i.e., interest is calculated on the outstanding loan principal amount and not the entire loan amount.
Q2. What is the minimum and maximum tenure for RBL Bank personal loan for EMI calculation? The minimum tenure is 12 months and the maximum is 60 months.
Q3. Does the EMI calculator also show processing charges?
No, the EMI calculator does not show charges such as processing fees or prepayment charges. These charges vary from one lender to another as well as from applicant to applicant in some cases. They are specified in the loan agreement provided to the borrower at the time of loan disbursal..
Q4. How can I arrive at the right EMI amount?
The EMI calculator lets you try different combinations of loan amount, interest rate and tenure to arrive at the most appropriate EMI for yourself. However, make sure that you take into account all your outstanding debts and monthly expenditure to avoid any hassles later.
Q5. What do you mean by float rate EMI calculation? Is personal loan interest computed this way?
EMI is made up of two components – the principal and the interest accrued. When a lender makes use of floating interest rate that depends on an external benchmark like repo rate to calculate EMIs, it is called floating rate EMI calculation. In this case, there is a periodic change in the interest rate applicable to the loan. However, at present this method is not applicable to personal loan interest calculation.