Calculate Personal Loan EMI
Personal Loan EMI Calculator
Use the Personal Loan EMI Calculator and speculate your EMI on a personal loan. Check how Interest Rate and Loan Tenure affects your EMI on PL.
Personal loans are the most frequently used credit instrument in the debt market. Prospective consumers frequently choose these loans because of their unsecured character. If you take out a personal loan for a set time, the monthly payment is known as an EMI or Equated Monthly Installment. Until the loan is fully repaid, the principal loan amount and the personal loan interest will be paid off with the EMI payment. The EMI won’t change during the term. Hence, before taking a personal loan, you should know the EMI amount on the borrowed principal amount.
However, calculating personal loan EMI is time-consuming, with many moving parts. It can be difficult to compute for those unfamiliar with the intricate aspects of EMI calculation. In such circumstances, a personal loan EMI calculator can greatly assist.
Personal Loan Calculator
How can you benefit from a personal loan EMI calculator?
The Personal Loan EMI Calculator is an online tool that assists in calculating how much EMIs or monthly payments a borrower must make to repay a loan. The EMI Calculator considers the loan amount, interest rate, and loan term while calculating the EMI, interest owed throughout the loan, and the remaining loan balance for a specific period.
- It enables quick completion of difficult calculations and saves time that may be employed more effectively.
- It eliminates the possibility of any calculation error by giving you reliable information, and it enables you to plan your repayment strategy.
- When borrowers are looking for the lowest interest rate on the loan amount they desire, a high EMI amount prevents them from proceeding. However, there is always the option to re-adjust the loan term or loan amount until the person is comfortable paying the EMI. In this case, an EMI calculator is the ideal tool to use.
- Using this simple calculator to calculate personal loan EMI can cut your worries and concerns in half. It includes informative pie charts and tables to help you visualize the actual scenario of obtaining personal loans so that you can be confident when applying for a personal loan.
- Using this personal loan EMI calculator, you can compare different loan amounts, returns on investment, and loan terms to determine which loan is best for your financial position.
Factors Influencing Personal Loan EMI
There are mainly three major factors that determine or influence your sum of EMI. Loan amount, tenure, and rate of interest with the assistance of this information, you can calculate your EMI using a personal loan EMI calculator.
Loan Amount – The primary factor in calculating the personal loan EMI is the amount of money you borrow from the lender. This demonstrates how the loan amount is proportional to the EMI. As a result, choose a loan amount specifically required for personal workflow so that you can pay the recurring EMI amounts without financial stress.
Loan Tenure – The longer the term, the easier it is for the debtor to repay the loan to the bank or financial institution from which it was obtained. However, it will increase your EMI amount because of its working nature.
Interest Rate – In the case of any loan, the interest rate offered on the borrowed funds is the primary factor determining the exact amount of your EMIs. In general, different banks provide varying personal loan interest rates. As a result, the higher the interest rate, the more EMIs you must pay. And, if the rates are lower, your monthly payments will also be lower, putting less strain on your wallet.
Formula to determine Personal Loan EMI
The EMI calculator uses the following formula to calculate interest payments:
E = P . r. (1+r)^n/((1+r)^n – 1)
where,
E = EMI (Equated Monthly Installment)
P denotes the principal loan amount.
r denotes the monthly interest rate.
n = Loan Tenure in Months
How to Minimize Personal Loan EMI?
There are possible reasons that you can reduce your EMI on your loan by following some of the rules and regulations.
Attempt to make partial prepayments whenever possible:
When you partially make a payment on a loan, you pay back a portion of the outstanding loan balance early, giving you the option to reduce your EMI or tenure. Only choose lower EMIs if you are having difficulty repaying your existing EMIs. Or else, tenure reduction is a better option because it will assist you in saving more on your loan’s overall cost of the loan.
Transferring your loan:
You may also consider transferring your loan to a lender that offers lower interest rates. Some lenders may also provide a longer repayment period for personal loan balance transfers. However, before deciding on a personal loan balance transfer, conduct a thorough cost-benefit analysis to ensure that the amount saved on interest is significantly greater than the costs incurred during the loan transfer. Before deciding on a balance transfer, use an online EMI calculator for personal loans to see how much money you can save by lowering your EMI.
Personal Loan EMIs from Leading Banks and NBFCs
Lender | Interest rate (% p.a.) | EMI (Rs.) Loan amt. – 5 lakh Tenure – 5 years | EMI (Rs.) Loan amt. – 1 lakh Tenure – 5 years |
HDFC Bank | 11.00 onward | 10,871 onward | 2,174 onward |
Citibank | 10.75 – 16.49 | 10,809 – 12,290 | 2,162 – 2,458 |
Tata Capital | 10.99 onward | 10,809 onwards | 2,174 onward |
ICICI Bank | 10,75 onward | 10,809 onward | 2,162 onward |
Bank of Baroda | 10.60-17.95 | 10,772-12,683 | 2,154-2,537 |
Axis Bank | 10.49 onwards | 10,744 onwards | 2,149 onwards |
Kotak Mahindra Bank | 10.99 onwards | 10,869 onwards | 2,174 onwards |
Bank of India | 9.75-14.25 | 10,562-11,699 | 2,112-2,340 |
Canara Bank | 12.10-15.80 | 11,148-12,106 | 2,230-2,421 |
HSBC | 9.75-16.00 | 10,562-12,159 | 2,112-2,432 |
Federal Bank | 10.49-17.99 | 10,744-12,694 | 2,149-2,539 |
Union Bank | 10.80-14.90 | 10,821-11,869 | 2,164-2,374 |
Bajaj Finserv | 11.00 onwards | 10,871 onwards | 2,174 onwards |
Punjab & Sind Bank | 10.90-12.50 | 10,846-11,249 | 2,169-2,250 |
South Indian Bank | 12.25-20.00 | 11,185-13,247 | 2,237-2,649 |
UCO Bank | 11.95-12.35 | 11,110-11,211 | 2,222-2,242 |
IDFC First Bank | 10.49 onwards | 10,744 onwards | 2,149 onwards |
Bank of Maharashtra | 8.90-14.70 | 10,355-11,816 | 2,071-2,363 |
Indian Overseas Bank | 11.90-12.90 | 11,097-11,351 | 2,219-2,270 |
Indian Bank | 10.30-14.40 | 10,697-11,738 | 2,139-2,349 |
Karnataka Bank | 11.32 onwards | 10,951 onwards | 2,190-onwards |
Indusind Bank | 10.49 onwards | 10,744 onwards | 2,149 onwards |
Updated Interest rates as of 8 December 2022
What Happens When You Miss your Personal Loan EMI(s)?
When you skip or do not pay your EMI on the loan amount, you have to face a certain penalty, as described below.
Penal Interest Charges: You may also know them as overdue interest charges applicable when you skip your monthly EMI amount payable. It is levied on overdue EMI till the date of their repayment.
Cheque/NACH/SI Bounce charges: When you fail to pay your monthly personal loan EMI due to insufficient account balance or post-dated cheque bounce, you are obligated to pay a fixed pena
Frequently Asked Questions
No, personal loans are unsecured, so you don’t have to put up any collateral
Maintain a high credit score and select your lender after conducting extensive research. Some lenders provide more favorable terms and interest rates than others.
Choose the loan amount and expected ROI based on your needs. You can now choose from various tenure options to determine the monthly EMI amount you can afford. Alternatively, you can begin by selecting the ROI and the tenure and then use the EMI amount to calculate the Loan Amount based on your affordability.
Some of the advantages of knowing your EMIs ahead of time are that you can better plan your finances, which enables you to pay your EMIs on time, which improves your credit score. You can also plan your payments so that you do not miss any EMI payments, which will help the bank reduce the overall interest rate in the future.
Lenders typically use the reducing balance method to compute the EMI on a personal loan. This EMI calculation method is also used by personal loan EMI calculators, which are available online on lenders’ and other websites.
Yes, the EMI amount does not change unless you part-pay a certain amount.
To calculate the lowest EMI, consider your preferred loan amount, the lowest rate the relevant bank offers, and the maximum tenure. Enter these details when calculating, and you’ll get the lowest EMI for your loan. Long-term loans require you to pay more in interest while making smaller monthly payments than short-term loans. The situation is reversed for short-term loans, meaning you pay less interest even though your amortization sum is higher than for longer-term loans.
Though the EMIs remain largely consistent throughout the loan’s term, the amounts repaid are applied to the principal and interest to be repaid. The initial installments typically contribute more to the interest amount, while subsequent installments contribute more to the principal. An amortization schedule breaks down the amounts repaid towards principal and interest, as well as their respective balances, over the life of the loan. In Simple terms, an amortization schedule is a road map to loan repayment that indicates the milestones and ideal points you should be at throughout the cycle.
You can pay your loan EMIs by submitting post-dated cheques to your lender or issuing Standard Instructions (SI) or NACH mandates to your bank. Some lenders also allow your employer to deduct your EMIs directly.
