Union Bank of India 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 Union Bank of India 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
Union Bank of India Personal Loan EMI Calculation
Union Bank of India makes use of the reducing balance method to compute the EMI payable on its personal loans. The table below gives EMI calculation for Union Bank of India personal loans using varying combinations of loan amount, interest rate and tenure.
|Loan Amount (Rs.)||Interest Rate (p.a.)||Tenure (months)||EMI (Rs./month)|
Comparison of EMI Calculation Methods: Flat Interest Rate v/s Reducing Balance Interest Rate
The given table depicts a comparison of the difference in EMI payable when using the flat interest rate method v/s when the reducing balance method is used for varying loan amounts, tenures and interest rates:
|Loan Amount (Rs.)||Loan Tenure (months)||Interest Rate (p.a.)||EMI using Flat Rate method|
|EMI using Reducing Balance method|
Factors Affecting Union Bank of India Personal Loan EMI
Some key factors which affect Union Bank of India personal loan EMIs are discussed below:
- Loan Amount: The amount of money that you borrow from a bank or NBFC is referred to as the loan amount. Usually, as the loan amount increases, the EMI amount also increases and vice versa. For instance, if you avail a personal loan of Rs. 5 lakh at 12% p.a. for a period of 5 years, your EMI payout will be 11,122. However, in case you avail a loan of Rs. 2.5 lakh at the same interest rate and tenure, your EMI payout will be Rs. 5,561.
- Interest Rate: The rate of interest charged by the lender on the loan amount is called the interest rate. High interest rates usually result in higher EMI payouts. For instance, if you avail a loan for Rs. 2.5 lakh at 12% for 1 year, the monthly EMI payout will be Rs. 22,212. However, if you avail a loan for the same amount and tenure at an interest rate of 14%, the monthly EMI payout will be Rs. 22,447.
- Loan Tenure: It refers to the loan repayment period, that is, the time period over which the loan can be repaid. Usually, as the loan repayment period increases, the monthly EMI payout decreases. However, it may result in greater total interest payout. For instance, if you avail a loan of Rs. 2.5 lakh at 12% for a period of 1 year, the monthly EMI payout will be Rs. 22,212 with a total interest payout of Rs. 16,546. However, if you take a loan for the same amount and at the same rate of interest for a period of 5 years, your monthly EMI payout will be Rs. 5,561 with a total interest payout of Rs. 83,667.
- Interest Calculation Method: The method of calculating interest adopted by the lender also affects the personal loan EMIs. Try and avail a loan that follows the reducing balance method of interest calculation rather than the flat rate method. Usually, EMIs computed using the reducing balance method are slightly lower as compared to EMIs computed using the flat rate method. For instance, if you avail a loan for Rs. 2.5 lakh for a period of 60 months at an interest rate of 12% and interest is calculated using the reducing balance method, the monthly EMI payout will be Rs. 5,561. Whereas, if the interest is calculated using the flat rate method for the same loan, the monthly EMI payout will be Rs. 6,667. Thus the preferred option will be going for a loan and lender where interest is calculated using the reducing balance method.
Q1. Can I pay my Union Bank of India personal loan EMI online?
Yes, customers can pay their Union Bank of India personal loan EMI online via internet banking.
Q2. Is there an option to autopay my Union Bank of India personal loan EMI?
Yes, you can choose to autopay your personal loan EMIs by opting for the Standing Instruction/NACH (National Automated Clearing House) mandate facility.
Q3. Does the EMI calculator show the prepayment charges?
No, the EMI calculator does not show 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 rate EMI calculation is when EMIs are calculated using floating interest rate. This interest rate is variable in nature and is based on market fluctuations and RBI policies. For example, Repo Linked Lending Rate (RLLR) is influenced by the repo rate. Whenever the repo rate is changed by RBI, the loan interest rate also changes. At present, the floating interest rate mechanism does not apply to Union Bank of India personal loans.
Q5. Can Union Bank of India personal loan EMIs be paid in cash?
No, Union Bank of India personal loans EMIs cannot be paid in cash.
Q6. How can I arrive at the right EMI amount?
You can reach an EMI amount that suits your budget by using an EMI calculator to check different combinations of loan amount, tenure and interest rate. You must consider all your outstanding debt and monthly expenditure to arrive upon a convenient EMI amount that you can easily pay off without major impact to your financial stability.