RBL Bank is known for quick disbursal of personal loans and hence is an ideal option to avail funds on an urgent basis. Available up to Rs. 20 lakh, the loan amount can be used for a variety of purposes, including home renovation, travel, marriage and even medical needs. But before availing any loan, you should always plan your monthly budget in advance to avoid any financial hassle later. To help you plan better, we have provided an easy to use online EMI calculator and also discussed key aspects such as factors that affect your monthly payout and how you can pay your EMIs online.
How RBL Bank Personal Loan EMI Calculator Functions
Equated Monthly Installments or EMIs refer to the monthly payout that you need to make on a regular basis to repay your personal loan. These EMIs may form a significant portion of your monthly budget, and hence it becomes really necessary to calculate them beforehand. It not only allows you to plan your monthly finances better, but also safeguards you from possible financial difficulties later. It’s now easy to calculate your monthly EMIs by using the RBL Bank personal loan EMI calculator. You can also use the free online Paisabazaar Personal Loan EMI Calculator to know your monthly EMI payout instantly. This user friendly-tool allows you to try various combinations of loan parameters and arrive at the most suitable EMI amount for yourself.
An EMI calculator functions on the basis of the following three variables:
- Loan Amount: It refers to the sum of money that you have applied for as a personal loan from RBL Bank. It should be noted that the bank offers a personal loan for as low as Rs. 1 lakh to as high as Rs. 20 lakh.
- Loan Tenure: It refers to the time period over which you can repay the loan amount. It varies from 12 to 60 months with respect to RBL Bank personal loan.
- Interest Rate: It refers to the rate at which interest is charged over the loan amount. Interest can be calculated either by using the flat rate method or the reducing balance method. RBL Bank uses the reducing balance method of interest calculation. Interest rate offered by RBL Bank lies in between 14% and 23%.
All these variables are to be fed into the RBL Bank EMI formula to display the result i.e. monthly EMI payout instantly.
Monthly EMI Payment Comparison of Popular Banks in India
The following table gives a comparison of the monthly EMI payments of popular banks in the country for varying 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. 5 lakh||Loan Amount of Rs. 10 lakh|
|RBL Bank @ 14%p.a.||Rs. 8,979||Rs. 44,894||Rs. 89,787|
|Axis @ 11% p.a.||Rs. 8,838||Rs. 44,191||Rs. 88,382|
|HDFC @ 12.50% p.a.||Rs. 8,908||Rs. 44,541||Rs. 89,083|
|ICICI @ 10.50% p.ae.||Rs. 8,815||Rs. 44,074||Rs. 88,149|
|PNB @ 8.95% p.a.||Rs. 8,743||Rs. 43,714||Rs. 87,428|
|Citibank @ 9.99% p.a.||Rs. 8,791||Rs. 43,956||Rs. 87,911|
RBL Bank Personal Loan EMI Calculation
RBL Bank uses the reducing balance method of interest calculation. The following table shows the possible monthly EMI payouts for RBL Bank personal loan based on different combinations of loan parameters:
|Loan Amount (Rs.)||Interest Rate (p.a.)||Tenure (months)||EMI (Rs./month)|
Charges Levied on Non Payment of EMI
|Overdue Interest||2% per month on the overdue amount|
|Cheque Bounce Charges||Rs. 250 per instance|
Factors Affecting RBL Bank Personal Loan EMI
The following factors affect the RBL Bank personal loan EMI:
- Loan Amount: It refers to the amount of money you want to avail as a personal loan. Generally as the loan amount increases, the EMI amount also increases.
- Loan Tenure: It refers to the number of months/ years that are available for the repayment of the loan. As as the loan tenure increases, the EMI decreases. However, it may result in a greater interest payout. Hence, it is advised to maintain a balance between the EMI amount and the total interest you will be paying for the loan.
- Interest Rate: It refers to the rate at which interest is charged on the loan amount. High rate of interest generally translates into high EMIs. Thus, you should always compare multiple loan offers before settling for one. You can use the Paisabazaar platform to compare loan offers from 30+ lenders at the same time to make an informed decision.
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.