If you have been thinking about taking a personal loan to consolidate your debts, you might wonder how to make the monthly payments on the loan. In order to know how much money you’ll need each month, it’s important to calculate what your personal loan EMI will look like by using an EMI calculator that can estimate this amount for you quickly and easily. Here are some tips on where to look for such calculators online so that you can get the full picture of how much financial assistance you’ll need from your lender.
Calculate Personal Loan EMI – What Does it Mean?
EMI is short for equated monthly instalments and is the fixed monthly payment made by the borrower to repay outstanding debt. The monthly instalments are calculated based on the debt’s principal amount, interest rate, and tenure.
If you are looking for a personal loan, it’s always good to know your monthly payments. That means you should calculate your personal loan EMI. A good rule of thumb is to only borrow what you can afford to repay from your next paycheck. That way, you won’t end up sinking into debt and losing control of your money. If you’re going to borrow money, always do the math first! You’ll need an estimate of how much money you’ll make each month (your take-home pay) and how much you’ll spend on living expenses (rent or mortgage, utilities, groceries).
How to Calculate Personal Loan EMI?
The easiest way to calculate a personal loan EMI is to multiply the principal amount by the interest rate and divide this number by 12. This will give you your monthly installment.
For example, if you borrow Rs. 1,00,000 at an interest rate of 10%, your monthly instalments will be Rs. 12,500 (Rs. 100000*10/100). The number of monthly payments is determined by the loan’s term.
The total amount payable would be the principal amount. Plus, all of the accrued interest from when you borrowed it until it’s paid back in full.
What Factors to Consider to Calculate Personal Loan EMI?
Here are a few things you need to know while calculating personal loan EMI.
Amount of Loan:
The loan amount increases in direct proportion to the EMI due. The lender will calculate the maximum amount of the loan you are qualified for based on your capacity to repay it. They will also check your standing with the bank and other factors.
The bank will choose the interest rate for your loan based on several factors, such as your ability to repay, credit history, income, etc.
Tenure of Loan:
The loan tenure you choose has an inverse effect on the EMI. As the tenure is extended, the EMI decreases. But if you take out a loan for a longer period, you may have to pay more interest. The normal range of credit periods lies between 12 and 84 months.
Where Can I Find the Personal Loan EMI Calculator Online?
Most banks offer free calculators on their websites, which will give you an idea of your monthly payments. So go ahead and do the math!
Here is the list of some of the banks with their personal loan EMIs:
|Bank||Loan Tenure||Lowest EMI Per Lakh|
|Union Bank of India||5 years||Rs.2,071|
|Kotak Mahindra||5 years||Rs.2,162|
|Karnataka Bank||5 years||Rs.2,224|
|HDFC Bank||5 years||Rs.2,149|
|Axis Bank||5 years||Rs.2,224|
What Are the Benefits of Using a Personal Loan EMI Calculator?
If you are looking for a personal loan, using a personal loan interest rate calculator has very interesting benefits. Read here
Better decision-making: Using an EMI calculator will help you determine how much money you’ll need for your monthly repayments so you know if the personal loan is worth it. The more information you input into the calculation, the more accurate it will be. And so it is easy for you to decide whether to take a loan or not.
Helps to make a monthly budget: When you calculate personal loan EMI, you will also know how long it will take for the interest on your loan to exceed the original amount of your credit card debt. With this in mind, you can decide whether or not to go ahead with taking out a personal loan. Also, determine whether that would be financially beneficial for you.
Easy to use: Most EMI calculators are free to use and easy to understand, meaning that even those without a strong financial background should be able to calculate their monthly payments correctly.
Time-saving: One advantage of using an EMI calculator is that it saves time by giving accurate and instant results. Suppose you have to figure out what’s best for yourself anyway. Personal Loan Emi Calculator Online can assist you with the correct rates. So you don’t have to stand in line at the bank.
Accurate Result: It’s really up to you whether you should calculate a personal loan EMI and whether it is worth your time; after all, every person’s situation is different. However, it does seem like most people find that these calculators give them accurate and helpful results.
As you know, compared to personal loan offers, it’s important to know the interest rates and whether you can afford to pay them back over time. Loan calculators can help with this, but they aren’t as easy to find as they used to be—particularly when it comes to personal loans. We’ve compiled some of the most useful and reliable personal loan calculators from around the web. You can visit the Piramal Finance website to calculate your personal loan EMI online. Here, you can apply for a personal loan in just a few steps.