A personal loan EMI calculator can assist you to know about your loan EMI along with interest cost depending upon your loan tenure, amount, and personal loan interest rates. It assists you in selecting your loan tenure and amount depending upon your repayment potential.
Crucial tips for using the personal loan calculator
∙ Higher loan proceeds or/and the higher rate will enhance your overall interest constituent and EMI and vice versa.
∙ A higher loan repayment tenure can lower your EMI when increasing your thorough interest component and vice versa.
∙ Lenders generally prefer lending loan applicants whose overall EMI obligation involving the existing EMI and new loan EMIs are not over 50 to 60 percent of your monthly income.
Parameters impacting your personal loan EMI
Major parameters impacting your thorough EMI amount include the listed:
Loan principal: Higher the loan amounts you borrow on a personal loan, the higher will be your personal loan EMI if the repayment tenure and rate of interest stay constant.
Rate of interest: Higher the rate of interest, the higher would be your EMI payout and overall interest on your personal loan.
Repayment tenure: When you choose a higher repayment tenure, your individual EMI repayment falls as compared to shorter repayment tenure for the same personal loan. However, longer repayment tenure even results in higher overall interest payment over loan repayment tenure.
Processing charges: Most financial institutions collect processing charges and other linked charges during the process of personal loan approval. However, if any of the lenders add such charges to your loan, then these may affect your personal loan EMI amount.
Important features of a personal loan
∙ Repayment loan tenure: 1 – 5 years
∙ Processing charges: Up to 5 percent of the loan amount
∙ Loan amount: Between Rs 10,000 and Rs 40 lakh
∙ Security free loan
Personal loan types
∙ Wedding loan: A loan can be availed to mitigate marriage linked costs, including catering, venue booking, shopping, accommodation etc.
∙ Medical loan: The loan facility even assists you to mitigate the expenses incurred for meeting your medical exigencies or paying your medical treatment.
∙ Home renovation loan: It is the best option if you want to upgrade the furniture in your home or mitigate maintenance expenses.
∙ Travel loan: The loan permits you to mitigate expenditures linked with holiday plans.
∙ Debt consolidation loan: It is a special kind of personal loan that permits you to pay multiple smaller loans availed at a higher rate of interest and then repay a consolidated loan EMI via this loan at a lower rate of interest and for a higher loan repayment tenure.
∙ Consumer durable loan: Generally called a shopping loan, a durable consumer loan is available for purchasing household electronics and goods like television, smartphones, laptops, washing machines and others.
∙ Instant personal loan: Also called a pre-approved personal loan, an instant loan is offered to specific bank customers having a strong credit profile.
∙ Personal loan top-up: It is an add on the loan amount that can be availed over and above the outstanding amount of your ongoing personal loan.
Best bank for personal loan as per interest rate
|Lenders||Rate of interest (per annum)|
|Tata Capital||10.99 percent p.a.|
|Bajaj Finserv||13 percent p.a. onwards|
|IDFC First Bank||10.49 – 23 percent p.a.|
|IndusInd Bank||11 percent p.a.|
|Kotak Mahindra Bank||10.25 percent – 24 percent p.a.|
|Axis Bank||10.25 percent p.a. onwards|
|ICICI Bank||10.50 percent – 19 percent p.a.|
|Punjab National Bank||7.90 percent – 14.50 percent p.a.|
|State Bank of India||9.60 percent – 13.85 percent p.a.|
|HDFC Bank||10.25 percent – 21 percent p.a.|
How can you arrive at the correct personal loan EMI amount?
You must first analyze the amount you can afford to repay in the form of EMI each month. Based on this data, you can simply check the EMI for distinct repayment tenures at a fixed interest rate. Choose the feasible EMI as per your repayment capacity.
What method of the EMI calculation do maximum banks use?
Many of the lenders work on the reducing balance method for computing their applicable loan EMI. It is recommended to confirm the same from the lender when applying for a loan.
How can you lower your personal loan EMI?
Listed below are some of the key measures that can be useful in lowering the EMI payable on a personal loan.
∙ Choose a lower loan amount
∙ Choose longer EMI repayment tenure
How can you change your personal loan EMI date?
In case you are looking to change your loan EMI date, you must directly contact customer care and follow all instructions. The procedure to initiate this charge differs considerably from one bank to another.
Can you get your personal loan EMI changed?
Make the prepayment on your existing personal loan. It will lower the outstanding loan principal, which would reduce your EMI payout over the remaining loan repayment tenure.
Personal loan, though important, comes with numerous sets of challenges. In fact, a personal loan is one of the crucial financial instruments for you. However, deciding the personal loan type and its numerous aspects need in-depth research as well as calculation. All of it is made easy through a personal loan EMI calculator. As the name suggests, the personal loan EMI calculator helps you to determine your personal loan EMIs that you require repaying each month to the personal loan lender. Moreover, such calculators can be used to compare personal loan interest rates.
Besides comparing, personal loan EMI calculators are customizable. As values of all the aspects in the calculator are customizable, you can easily alter the values until you are satisfied that the result is as per your repayment capacity. Thus, it allows you to avail a suitable personal loan for you with the best possible values. Other important benefits of the personal loan EMI calculator are that it saves time and caters accurate results, is simple to use and access, makes decisions by changing the parameters impacting the personal loan EMI etc. Manual personal loan EMI calculation must be avoided as it is not just time-consuming but also holds the chances of erroneous computing results.