What is a Personal Loan EMI Calculator?
A Personal Loan EMI Calculator is a pre-eminent automatic tool through which you can perceive the equated monthly instalments (EMIs) payable towards the debt amount. It allows borrowers to compute appropriate values within a fraction of a second by providing the loan amount, applicable interest rate, and repayment tenure.
With cutting-edge AI technology, Urban Money's personal loan EMI calculator eliminates complicated manual computation of monthly instalments. It helps borrowers ascertain the EMI outgo and plan cash flows accordingly to avail of the best personal loan offerings.
Saving time via quick and accurate results, this useful calculator makes loan repayment planning a breeze for the borrower by using a simple set of numbers.
How to Use a Personal Loan EMI Calculator?
A personal loan EMI calculator of Urban Money is an advanced simulation that helps in the computation of EMI amount based upon the principal loan amount, tenure, and interest rate. All you have to do is enter specific details or move the slider to input values into the calculator.
- Enter the principal amount manually or use the slider to select the amount.
- Select loan repayment tenure in months.
- Move the slider to select the applicable rate of interest or enter it manually.
- After getting these values as input, the personal loan EMI calculator depicts the payable monthly instalments, interest component, and the overall repayment amount.
- You can recalculate the EMIs by altering the input sliders or entering new values. A minute change in the input values will result in a change in monthly instalments.
Tips to Use Personal Loan EMI Calculator (PL Calculator)
- A higher loan amount coupled with a higher rate of interest will result in an increased EMI. This further escalates the overall interest component levied on the personal loan.
- A lower loan amount coupled with a lower rate of interest will result in reduced EMI. This will further decrease the overall interest component levied on the personal loan.
- A longer repayment tenure reduces the monthly instalment, but at the same time, it increases the overall interest cost.
- A shorter repayment tenure increases the monthly instalment, but at the same time, it reduces the overall interest cost.
- The borrower who does not exceed 50 to 60 percent of the monthly income to pay EMI is highly preferred by the lenders.
Personal Loan EMI: A Generic Overview
You can easily get a personal loan from a bank or NBFC without pledging collateral. A personal loan comes in handy when you're planning a vacation, upgrading your home, or preparing a dream wedding.
You don't have to put off anything on your bucket list any longer! The end use of the borrowed funds is not restricted. You are free to use the amount to fulfil your financial obligations. You are bound to repay the loan amount in specified tenure ranging from one to five years.
The fixed amount of money you repay the bank throughout the loan tenure is termed as personal loan EMIs. People usually prefer a personal loan contrary to other loans as it is collateral-free, requires minimal documentation and comes with usage flexibility.
P denotes the principal amount or loan amount, R is the rate of interest, and N represents the number of monthly instalments.
As you have to pay the loan EMIs on a monthly basis, the loan tenure is computed in months. Let's say Person A took a personal loan of INR 10 lakh at a 15 percent interest rate with a repayment tenure of 2 years.
As per the specifics, P will be INR 10 lakh, R will be 15%, and N will be 24 months. The EMI calculation will go like this.
INR 10,00,000 x 15/100/12 x (1+15/100/12)^24] / [(1+15/100/12)^24-1 EMI = INR 48,487Thus, the monthly EMI will be equal to INR 48,487.
Factors Affecting Personal Loan EMIs
The personal loan EMI calculator computes the monthly instalments based on three components, i.e., loan amount, interest rate, and tenure.
These play a vital role as they highly influence the loan EMIs. Each component is interrelated and affects the other in a significant way.
For instance, credit score determines the eligibility and interest rate, which further accounts for a major part of your monthly payment amount.
The following factors affect the personal loan EMI calculation:
A higher principal amount will result in higher monthly instalments. To determine the maximum amount that can be sanctioned to the borrower, the lender evaluates the former's financial profile.
Interest rate fluctuations are one of the key influential factors impacting home loan EMIs. It is specifically prominent in the case of floating interest rates, as altering interest rates can create either positive or negative impacts on personal loan EMI. Personal loan interest rates usually fluctuate because of RBI policies and changing international market trends. Higher interest rate results in increased EMI and vice versa.
The exact figure of the monthly payable amount is determined based on the repayment time frame of the personal loan. Any change in the loan tenure affects the imposed EMI. The key rule is the EMI amount decreases with increasing tenure and vice versa.
In addition to the mentioned key factors, several additional pointers can impact the monthly EMIs, including income, investment statements, stable employment history, debt-to-income ratio and credit score.
Benefits of a Personal Loan EMI Calculator
A personal loan EMI calculator offers an array of benefits to the user. Here's what you get when you count on a PL calculator for the calculation:
You don't have to visit numerous bank websites to compare offered loan amounts and interest rates. Enter the loan amount and repayment tenure. Keep these values static while keeping the interest rate dynamic. This will help you to have a holistic idea about personal loan EMIs on a single platform. After comparison, you can choose the one that perfectly fits your requirements.
You get the ease of calculating EMI for different case scenarios at lightning-fast speed through a personal loan EMI calculator. Compute hundred percent accurate values within minutes and save your time.
Choose Preferred Repayment Tenure
With an easy-to-use personal loan interest rate calculator, you can alter repayment tenure. Based upon the tenure, the EMI will change. You will get multiple combinations of loan tenure and EMI. Choose the one that doesn't overburden your monthly budget. The key is longer the tenure, the lesser will be the monthly instalment.
With Urban Money's personal loan EMI calculator, you get a detailed loan breakdown associated with the repayment schedule. You will have an exact idea about the amount you are going to pay as interest along with the outstanding principal amount.
Verify the Provided EMI Information
Validate the repayment schedule offered by the finance provider by computing values yourself through the personal EMI calculator. Additionally, you get the opportunity to calculate the loan processing fee payable prior to loan disbursement. However, this amount is deducted from the disbursed amount.
Personal Loan EMI Comparison across Top Banks in India
Check out the personal loan EMI amounts provided by the top banks in India against various repayment tenures for a loan of INR 1 lakh.
|Bank Name||Lowest Possible EMI for INR 1 Lakh||Loan Repayment Tenure|
|State Bank of India||INR 1,640||7 years|
|HDFC Bank||INR 2,149||5 years|
|Axis Bank||INR 2,224||5 years|
|CitiBank||INR 2,124||5 years|
|IOB||INR 2,164||5 years|
|SCB||INR 2,199||5 years|
|Kotak Mahindra||INR 2,162||5 years|
|Union Bank of India||INR 2,071||5 years|
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Frequently Asked Questions (FAQs)
How much loan can I get if my salary is INR 60,000?
With a salary of INR 60,000 on a monthly basis at max, you can get a personal loan of INR 16.20 lakh.
How much loan can I get on an INR 40,000 salary?
With a monthly salary of INR 40,000, you can get a personal loan of INR 10.80 lakh.
What is the EMI for INR 3 lakh personal loans?
The monthly instalment payments for a personal loan of INR 3 lakh might vary from one bank to another. Additionally, it orients around the repayment tenure and applicable interest rate. For instance, when you avail of a personal loan of INR 3 lakh for 1 year at a 10% interest rate, the monthly personal loan EMI will account for INR 26,375.
What is the formula for EMI in Excel?
In case you don’t have access to a personal loan EMI calculator, count on the personal loan Excel formula. For instance, when you avail of a personal loan of INR 5 lakh, at a 12 percent rate of interest with 48 months of repayment tenure, the excel formula will be [500000x48x0.01]. In this, the interest rate is 0.01 percent. The resultant amount will be your monthly payable EMI.
What happens if you fail to pay your EMI?
It is advisable to pay monthly instalments on time without failing. Generally, banks charge a penalty of 2 percent of the EMI amount when the borrower fails to make a monthly payment. It also generates a negative impact on your credit score. To plan your budget accordingly and compute instalments beforehand, count on a personal loan EMI calculator.
Can I pay EMI in one attempt?
If you have planned for prepayment or foreclosure, you can pay your personal loan EMIs in one attempt. However, banks have different criteria for personal loan prepayment. Get familiar with the prepayment charges to avoid additional costs. Also, go through the lender’s terms and conditions while signing the loan agreement.
What is the EMI for an INR 20 lakhs personal loan?
The monthly instalment payments for a personal loan of INR 20 lakh might vary from one bank to another. The EMI amount also depends upon the repayment tenure and applicable interest rate. For instance, when you avail of a personal loan of INR 20 lakh for 5 years at a 10% interest rate, the monthly personal loan EMI will account for INR 42,494.
Does the personal loan EMI calculator include the GST component in its results?
No, Urban Money’s personal loan EMI calculator does not take the GST component into consideration.
How can I change my personal loan EMI date?
To change your personal loan EMI date, you need to contact the customer care executive. The process might vary from one lender to another.
How much EMI can I get for INR 5 lakhs?
The monthly instalment payments for a personal loan of INR 5 lakh might vary from one bank to another. Additionally, it orients around the repayment tenure and applicable interest rate. For instance, when you avail of a personal loan of INR 5 lakh for 1 year at a 10% interest rate, the monthly personal loan EMI will account for INR 43,958.