Personal Loan EMI calculator
A Personal Loan is a loan used to cover various expenses or consolidate your debt. It is one of the best ways to answer your urgent financial obligations like outstanding bills, vacations, wedding expenses, and so on. 5paisa’s Personal Loan EMI Calculator is a tool that provides a breakdown of your monthly loan payments, assisting you in managing your finances effectively and making well informed decisions.
- ₹ 5K
- ₹ 10L
- 3 M
- 60 M
- 5 %
- 30 %
- Interest Amount
- Principal Amount
- Monthly EMI
- Principal Amount
- Interest Amount
- Total Amount to Pay
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A personal loan EMI calculator is an online tool that helps you calculate your EMI for a personal loan. EMIs are the fixed monthly payments required to repay your personal loan, which includes a fraction of the principal amount as well as the interest levied on it.
Moreover, a personal loan calculator may help you better organize your finances and make an informed decision about the loan amount and term that is appropriate for you based on your repayment ability.
A personal loan calculator can help you in several ways, some of which are:
Accurate EMI Calculation: The primary function of a PL calculator is to calculate the EMI accurately. By entering the loan amount, interest rate, and tenure, the calculator will provide you with the exact EMI amount that you will have to pay each month.
Plan Your Finances: By using a PL EMI calculator, you can plan your finances better. You will have a clear idea of the EMI amount that you will have to pay every month towards repaying the loan. This can help you budget your expenses accordingly and ensure that you have enough funds to meet your other financial obligations.
Compare Loan Offers: A personal loan EMI calculator can help you compare loan offers from different lenders. By entering the loan amount, interest rate, and tenure of different loan offers, you can compare the EMI amounts and choose the one that is most suitable for you.
Determine Loan Tenure: With the help of this calculator, you can determine the loan tenure that would be most suitable for you. By adjusting the tenure, you can see how the EMI amount changes and choose the loan tenure that is affordable and convenient for you.
Save Time: A personal loan EMI calculator saves you the time and effort of manual calculations. It provides you with an accurate EMI calculation instantly, which can save you a lot of time and help you make an informed decision about availing a personal loan.
Here are the features of a personal loan EMI calculator:
Accurate EMI Calculation: This online tool is designed to provide an accurate calculation of the EMI amount that you will have to pay towards repaying your personal loan. The calculator takes into account the loan amount, interest rate, and tenure of the loan to provide an accurate EMI calculation.
Ease of Use: A personal loan EMI calculator is easy to use. You just need to enter the loan amount, interest rate, and tenure, and the calculator will provide you with the EMI amount instantly.
Amortization Schedule: Some personal loan EMI calculators also provide an amortization schedule, which shows the breakup of the EMI amount into principal and interest components over the loan tenure.
Easy Comparison: This calculator allows borrowers to compare different loan offers from different lenders based on the EMI amount, interest rate, and tenure. This helps borrowers choose the most suitable loan offer for their needs.
Several factors can affect your personal loan EMI, some of which are:
Loan Amount: The EMI amount is directly proportional to the loan amount. If you avail a higher loan amount, your EMI amount will be higher, and vice versa.
Interest Rate: The EMI amount is also affected by the interest rate charged by the lender. If the interest rate is higher, your EMI amount will also be higher, and vice versa.
Loan Tenure: The loan tenure also affects the EMI amount. If you opt for a longer loan tenure, your EMI amount will be lower, and if you choose a shorter tenure, your EMI amount will be higher.
Processing Fees: Processing fees charged by the lender is another factor that impacts the EMI amount. If the processing fees are higher, your EMI amount will be slightly higher.
Credit Score: Your credit score plays a vital role in determining the interest rate and loan amount that you are eligible for. A higher credit score can help you avail a lower interest rate, which in turn, can result in a lower EMI amount.
Income: Your income also plays a role in determining your eligibility for a personal loan and the loan amount and tenure you are eligible for. A higher income can help you get a higher loan amount and a longer tenure, which can lower your EMI.
The formula to determine personal loan EMI involves three primary factors - the loan amount, the interest rate, and the tenure of the loan. The formula is as follows:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where,
EMI = Equated Monthly Installment
P = Loan amount
R = Rate of interest (monthly interest rate = Annual interest rate/12)
N = Loan tenure in months
For example, if you have availed a personal loan of Rs. 1 lakh for a tenure of 24 months at an interest rate of 12% per annum, your monthly EMI will be calculated as follows:
EMI = [1,00,000 x 1% x (1+1%)^24]/[(1+1%)^24-1]
EMI = [1,00,000 x 0.01 x (1.01)^24]/[(1.01)^24-1]
EMI = [1,00,000 x 0.01 x 1.282926]/0.282926
EMI = Rs. 4,791
Therefore, your monthly EMI for this loan will be Rs. 4,791.
An amortization schedule is a table that shows the breakdown of each payment that you make towards your loan. It shows how much of each payment goes toward the principal and interest components of the loan. Here is an example of an amortization schedule for a Personal Loan:
Loan Amount: Rs. 50,000
Interest Rate: 10% p.a.
Loan Tenure: 6 months
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Using the 5paisa EMI calculator is easy and hassle-free. To use the same, follow these steps:
Visit the 5paisa website and click on the 'Loans' option on the homepage.
Choose 'Personal Loan' from the list of loan options.
Enter the loan amount you require and select the desired loan tenure in months.
Input the applicable interest rate provided by 5paisa.
Click on the 'Calculate' button to get the monthly EMI amount and the total interest payable on the loan.
There are several advantages of using the 5paisa personal loan calculator for EMI:
Accurate EMI Calculation: The 5paisa personal loan calculator gives accurate EMI calculations based on the loan amount, tenure, and interest rate. This helps you to plan your finances better and make informed decisions regarding your loan.
Saves Time: Calculating EMI manually can be time-consuming, especially if you want to compare different loan options. With the 5paisa personal loan calculator, you can quickly calculate EMI for multiple loan options in just a few clicks.
Easy to Use: The 5paisa personal loan calculator is easy to use and requires no specialized knowledge or skills. You can use it from the comfort of your home or office without any hassle.
Compare Different Loan Options: The calculator allows you to compare different loan options by adjusting the loan amount, tenure, and interest rate. This helps you to choose the loan option that best suits your needs and budget.
Helps in Financial Planning: Using the 5paisa personal loan calculator, you can plan your finances better by knowing the exact EMI amount and the total interest payable over the loan tenure. This helps you to manage your finances and make timely payments.
In conclusion, a personal loan can be a good option to meet your immediate financial needs. It is an unsecured loan that can be availed without any collateral, and the loan amount can be used for any purpose. However, it is important to choose a loan amount and repayment tenure that you can comfortably afford, as defaulting on your loan payments can have a negative impact on your credit score and financial stability. Before applying for a personal loan, it is also important to compare loan options from different lenders and read the loan terms and conditions carefully to ensure that you are getting the best deal.
Frequently Asked Questions
- Most banks in India use a reducing balance method to calculate your EMI for loans.
- In this method, the interest is charged on the outstanding loan amount, which reduces with each EMI payment.
- This means that the interest component of the EMI decreases over time, while the principal component increases, resulting in a gradual reduction of the loan amount.
If you want to change your personal loan EMI date, you can follow these steps:
Contact your lender: The first step is to contact your lender and inform them that you want to change your EMI date. You can do this either by visiting the lender's branch or by calling their customer care number.
Provide necessary details: Your lender will ask you to provide details such as your loan account number, name, and other personal information to verify your identity.
Choose a new EMI date: Once your identity is verified, the lender will ask you to choose a new EMI date that is convenient for you. You may be given a few options to choose from, depending on the lender's policies.
Submit a request: After selecting the new EMI date, you will be asked to submit a request for the same. This may be done either online or by filling up a physical form at the lender's branch.
Wait for confirmation: After submitting the request, you will have to wait for the lender's confirmation. The lender may take a few days to process your request and make the necessary changes to your loan account.
It is important to note that changing your EMI date may result in a change in the loan tenure and the interest payout. Therefore, it is advisable to discuss the implications of changing your EMI date with your lender before making the request.
An amortization schedule is a table that shows the repayment schedule of a loan over its entire tenure. It provides a detailed breakdown of each loan payment, including the amount of principal and interest components, and the outstanding loan balance after each payment.
The amortization schedule is created based on the loan amount, interest rate, and loan tenure. It helps borrowers to understand how their loan payments are being applied towards the principal and interest, and how the loan balance is reducing over time.
There are several ways to pay your personal loan EMI. Here are the most common methods:
Auto-debit: This is the most convenient and hassle-free method of paying your EMI. You can authorize your bank to deduct the EMI amount from your savings or current account automatically on the due date every month.
Online payment: Many banks offer online payment options through their website or mobile app. You can log in to your account and pay your EMI using net banking, debit card, or credit card.
Mobile banking: You can also use your bank's mobile banking app to pay your EMI. This is a convenient method as you can make the payment from anywhere, anytime.
Cheque payment: You can also pay your EMI through a cheque. You need to write a cheque for the EMI amount in favor of the lender and drop it at the nearest bank branch or ATM.
Cash payment: Some banks also accept cash payments for personal loan EMIs. You can visit the bank branch and pay the EMI amount in cash.
It is important to make the EMI payment on time to avoid late payment charges and penalty.
Several factors can affect a personal loan EMI, some of them are:
- Loan Amount.
- Interest Rate.
- Loan Tenure.
- Processing Fees.
- Credit Score.
- Income.
Opt for a lower interest rate. Choosing a longer loan tenure will lower your EMI amount. If the processing fees are higher, your EMI amount can be high. Maintaining a high credit score can help you avail a lower interest rate which can result in a lower EMI amount. Finally, a higher income can help you get a higher loan amount and a longer tenure, which can lower your EMI.
No, personal loans are a type of unsecured loan that does not need any property or vehicle as collateral.
Yes, your EMI amount will remain fixed throughout the loan tenure allowing you to better plan your finances.
Interest rates are charged by the lender and can vary from one to the next. You can compare and choose a lender with the lowest interest rate. Having a higher credit score can also help you avail a lower interest rate. Lastly, your income plays a big role in determining the interest rate charged. A higher income can help reduce your interest rate.
A Floating Rate EMI is an EMI where the rate of interest decreases or increases based on the current economic or financial conditions of the market as opposed to a fixed interest rate that remains the same throughout the tenure of the loan.
Disclaimer: The calculator available on the 5paisa website is intended for informational purposes only and is designed to assist you in estimating potential investments. However, it is important to understand that this calculator should not be the sole basis for creating or implementing any investment strategy. View More..