A personal loan might be beneficial in situations of unanticipated financial problems or if you just need cash to take your family on a long-awaited vacation. A personal loan may also be useful for events such as weddings or festivities that need a large sum of money to carry off. If you apply for personal loans online you may get up to Rs. 35 lahks to cover any of your personal capital needs.
The loan can be authorized in as little as three minutes, and the funds are sent to your account within 24 hours. You can access cash as needed and return them in EMIs over a flexible payback period ranging from 12 to 84 months.
What exactly is an EMI calculator for personal loan?
The EMI calculator for personal loan assists you in calculating EMIS for the loan that you want to take out. To get the appropriate EMIs, enter the loan amount, term, and interest rate. It allows you to select an appropriate tenure based on your repayment ability. The EMI Calculator displays the loan EMI as well as the total interest due and loan cost.
The EMI calculator for a personal loan is only an estimate. The exact interest rate and the EMIS will be determined by the lender depending on your repayment abilities and credit score.
EMI calculator for a personal loan
For Personal financing, one such instrument is an interest rate calculator, which provides accurate information about your EMIs, Interest Outgo, and Total Amount Payable on a loan. This clever tool operates on a basic algorithm that calculates data in the simplest method possible in a matter of seconds. The device takes into account:
- Loan Term
- Loan Amount
- Interest Rate
Personal Loan EMI Calculation Formula
To compute an EMI, an EMI calculator for personal loans employs the following formula:
- [P x R x (1+R)N]/[(1+R)^N-1] = EMI
EMI stands for Equated Monthly Installment.
P denotes the principal loan amount.
R is the monthly interest rate.
N denotes the number of monthly instalments.
Assume you need Rs. 1 lakh and want to pay it over a year. At a 14% interest rate and a term of 12 months:
- The entire amount of interest due is Rs. 7,746, and
- The EMI is Rs. 8.979.
If you wish to pay an EMI of less than Rs. 5,000 for a loan of Rs. 1 lakh, you can adjust the term to 24 months:
- The entire amount of interest payable is Rs. 15.233.
- The EMI is Rs. 4,801.
A longer tenure decreases your EMI while increasing your total interest payable for the same ROI and loan amount.
Factors Influencing the EMI of a Personal Loan
- Loan term: Personal loan eligibility check with longer payback terms result in reduced EMIs, and vice versa. However, in this instance, the overall interest payment of your personal loan will rise as well. The EMI calculator for a personal loans can assist you in determining the best term for your personal loan depending on your repayment ability.
- Interest rate: Personal loans with lower interest rates have cheaper EMIs and interest costs, and vice versa. Before applying for a Personal Loan, be sure to examine the personal loan interest rates of leading banks/NBFCs.
- The loan amount: The larger the loan, the greater the EMIs and overall interest cost. It is important to note that your personal loan eligibility is mostly determined by your loan term and playback capabilities.
Using an online EMI calculator for a personal loan is not only simple, but it also saves time, whereas using Excel or a manual calculator may result in significant time waste. The interest calculator yields precise answers, allowing you to make a better-educated decision.
It is generally a good idea to examine EMI levels that correspond to your monthly budget. Failure to return a loan on time may harm your credit score. This may also jeopardize your capacity to obtain a loan in the future.