Tata Capital Personal Loan EMI Calculator 2021

Tata Capital offers personal loans of up to Rs. 20 lakh to both salaried and self-employed individuals. The loan comes with easy approval and a quick disbursal. Availing a personal loan in times of emergency is an ideal option, but you should always plan your monthly finances in advance. So read this article to understand various aspects of EMI calculation and know the monthly EMI payouts for your Tata Capital personal loan.

Tata Capital Personal Loan EMI Calculator

Taking a personal loan is a convenient option, as you can borrow a sum of money and pay it off in the form of monthly payouts to the lender. These monthly payouts are called Equated Monthly Installments (EMIs). The EMI payments have to managed as part of your monthly budget, and hence it is always advised to calculate your EMIs beforehand to avoid any difficulties later. You can easily calculate your monthly payouts using the Paisabazaar personal loan EMI calculator. Just specify the various loan parameters namely loan amount, tenure and interest rate to instantaneously know your EMI for free. Moreover, you can use the EMI calculator to try out various combinations of these loan parameters and arrive at the most suitable EMI.

How does an EMI Calculator Work?

The calculator functions on the basis of the following three parameters, which are automatically fed into the formula to display the monthly payout.

• Loan Amount: This refers to the loan amount that you are planning to apply for as a personal loan from Tata Capital. Generally, the EMI payable increases with an increase in loan amount. Tata Capital offers a personal loan for amounts as low as Rs.75,000 and as high as Rs. 20 lakh.
• Loan Tenure: This refers to the loan repayment period. For Tata Capital personal loan, it can vary anywhere between 1 to 6 years depending on the loan variant chosen. It should be noted that while longer loan tenure results in lower individual EMI payouts, it may result in greater interest payout. Thus, you should always seek a balance between the EMI amount and total interest payout before taking a loan.
• Interest Rate: It refers to the rate at which interest is charged on the amount borrowed as a loan. A high rate of interest generally translates into higher EMI payouts. So, you should always compare multiple loan offers from multiple lenders before settling for an offer. You can use the platform designed by Paisabazaar to compare loan offers from 30+ lenders on a single platform.

Personal Loan EMI Calculation Formula

The formula used for EMI calculation depends on the method of interest calculation used by the bank/ NBFC. The interest can be calculated either by flat rate method or by reducing balance method. Let us understand the formulae for EMI calculation using both these methods of interest calculation.

• Flat Rate Method: In this method, interest is calculated on the entire loan amount initially borrowed over the entire loan tenure.

EMI by Flat Rate Method = (Principal + Interest)/ Loan Tenure in Months

For example: Mr. Prasad took a personal loan of Rs. 10 lakh at a flat rate of interest of 15% for a period of 24 months.

Interest for 1 year = 15% per annum of Principal = 15% of Rs. 10 lakh = Rs. 1.5 lakh

Interest for 2 years, i.e., the complete loan tenure = Rs. 3 lakh

Thus, monthly EMI payouts for Mr. Prasad = (Rs. 10 lakh + Rs. 3 lakh)/24 = Rs. 54,167

• Reducing Balance Method: In this method, interest is calculated on the outstanding loan amount and not the entire amount initially borrowed. As a result, you end up saving on the interest component when this method is used.

EMI by reducing Balance Method = [P x (R/100) x {1+(R/100)}^N]/[{1+(R/100)}^(N-1)]

Where,

EMI refers to the Equated Monthly Installments;
P refers to the loan principal amount;

R refers to the loan interest rate on a monthly basis, which is annual interest rate/12;
N refers to the loan tenure in months.

For example: Ms. Sharma took a personal loan of Rs. 15 lakh at a reducing balance interest rate of 12% p.a. for a period of 36 months.

Monthly interest rate = Annual interest rate/ 12 = 12/12 = 1% per month

Monthly EMI payout for Ms. Sharma = [15 lakh x (1/100) x (1+1)^36]/ 1+ (1+1)^(36-1)] = Rs. 49,821

Tata Capital Personal Loan EMI Calculation

Tata Capital, a Non Banking Financial Company (NBFC), uses the reducing balance method of interest calculation. The following table shows the EMI payable for Tata Capital personal loan based on various combinations of loan parameters:

Comparison of EMI Calculation Methods: Flat Interest Rate v/s Reducing Balance Interest Rate

The following table shows how the method of interest calculation affects the monthly payout. As already mentioned, interest accrued in case of reducing balance method calculation is lower than interest accrued in case of flat balance calculation (even if interest rate is the same in both cases):

How to Pay Tata Capital Personal Loan EMI?

You can use the following three methods to pay Tata Capital personal loan EMIs:

• Auto debit/ Standing Instructions: When using this method, your account is automatically debited every month on the due date for the payment of EMI. Hence, you are saved from both remembering the due date and having to issue cheques every month. You can opt for this method by filling out a form to activate the mandate.
• Post Dated Cheques (PDCs): You can also pay your Tata Capital personal loan EMIs by means of PDCs. The EMI amount is drawn from the account on the due date mentioned on the cheque.
• Pay Online: You can also pay the loan EMIs online. This can be done using internet banking/debit card/ UPI facility on the online payment portal of Tata Capital.

EMI Plans Offered by Tata Capital

Tata capital personal loans come with the following two EMI plans:

• Standard EMI Plan: In this plan, the EMI amount remains the same throughout the loan tenure. In other words, you consistently pay off the principal and interest components over a defined period of time. This plan is suitable for those with a regular income.
• Step Up Flexi EMI Plan: This plan offers great facility with respect to EMI payments. You can pay lower EMIs in the beginning and pay higher EMIs later as your salary increases. This plan allows you to pay more when you can afford. It is ideal for those who expect their income to increase at regular intervals.

Charges Levied on Non Payment of EMI

Factors Affecting Tata Capital Personal Loan EMI

The following factors affect Tata Capital personal loan EMI:

• Loan Amount: Generally, as the loan amount increases, the monthly payout also increases. The minimum personal loan amount offered by Tata Capital is Rs. 75,000 while the maximum is Rs. 20 lakh.
• Loan Tenure: Monthly EMI payable decreases with an increase in the repayment period if loan principal and interest rate are kept constant. However, it may result in greater interest payout. Thus, you should always seek a balance between these two aspects before settling on a suitable personal loan offer.
• Rate of Interest: A higher rate of interest results in higher EMIs. Additionally, the method of interest calculation also plays a role in determining your monthly payout. EMI tends to be lower when interest is calculated using the reducing balance method than that in case of the flat rate method.

Benefits of Using an EMI Calculator

• Financial planning: An EMI calculator allows you to plan your monthly finances better. You can calculate your EMIs beforehand by using the tool. This can help you reduce the risk of default with respect to any EMI payment in the future.
• Instantaneous Results: The Tata Capital personal loan EMI calculator saves you from having to perform tedious EMI calculations by hand. You only need to provide the loan parameters and the tool displays the EMI payable in seconds.
• Accurate Calculation: Not only will you save time with the use of the EMI calculator, but also get 100% accurate results instantly. This can help you plan your loan repayment better.
• 24×7 Availability: You can use the EMI calculator at any time of the day from anywhere. Moreover, you can use it any number of times to try out various combinations of loan amount, tenure and interest rate at no charge whatsoever.

Frequently Asked Questions (FAQs)

Q1. How to pay Tata Capital personal loan EMI online?

You can use the online EMI payment portal of Tata Capital to pay the EMIs online. You can either use net banking or UPI or a debit card to do so.

Q2. What is floating rate EMI calculation?

When the interest rate offered by the bank/ NBFC depends on an external benchmark, such as repo rate, the interest is said to be variable. This is because change in the repo rate can lead to a variation in the loan interest rate. The method used for EMI calculation in such cases may be called floating rate EMI calculation. Current Tata Capital personal loan EMIs are calculated on the basis of fixed interest rates which remain the same throughout the loan tenure.

Q3. Does the EMI calculator also show prepayment charges?

No, the EMI calculator does not display the prepayment charges. You can check the same in the loan agreement provided by the lender.

Q4. Which method of EMI calculation does Tata Capital use?

Tata Capital uses the reducing balance method of interest calculation, and hence the following formula is applicable for EMI calculation:

[P x (R/100) x {1+(R/100)}^N]/[{1+(R/100)}^(N-1)]

Where,
P = principal (loan amount borrowed);

R = interest rate on a monthly basis i.e. annual rate/12
N = loan tenure in months

Q5. Does Tata Capital offer personal loan balance transfer facility?

Yes, Tata Capital allows personal loan balance transfer. Using this facility you can transfer an ongoing loan with any other lender to Tata Capital at a lower rate of interest. The interest rates and other features of the balance transfer facility tend to differ on a case by case basis.