Calculate personal loan EMI payments and compound Interest
When you are in dire straits and need money urgently but your friends and family members are unable to help you out, having a personal loan is your way out. A personal loan is also an unsecured loan; owing to this there is no need to put any collateral.
The best part is that you can use the amount for anything, be it purchasing your dream car, going on a vacation, or having a lavish wedding. But, just like other loans, you need to pay back the personal loans.
Therefore, it is imperative you have planned your finances beforehand if you are planning to take a personal loan. Here, a Personal Loan EMI Calculator will really come handy; let us know more about this calculator and everything related to the EMI calculators.
What is a Personal Loan EMI?
EMI stands for ‘Equated Monthly Installments’. When we refer Personal Loan EMI, there is a requirement to make the monthly payments, fixed or variable, for repaying your loan as per the schedule that can be easily calculated via Loan EMI Calculator.
What are the loan parameters for using EMI Calculator?
- Make sure you have the complete knowledge of the interest rate, loan amount, personal loan, and the processing fee. If you have plans to prepay your loan, make sure you have decided a particular amount that you are willing to prepay. In addition, you should also figure out the term of the payments entirely depending on your agreement.
- In order to key in or match the loan limits, using the sliders and the input boxes in the Loan EMI Calculator will surely be of great help.
- Different aspects such as total interest outgo, the tenure of your loan repayment, and amortization table will be shown with accurate detail allowing you to make a smart decision.
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ALSO CHECK OUT OUR – Home Loan Emi Calculator
Top 5 Personal Loan EMI Calculators Online
1…Personal Loan EMI Calculator HDFC Bank – Visit Here
HDFC Bank offers personal loan calculator to check your eligibility and monthly EMI of your Personal Loan online. Plan your personal loan repayment online!
2…Personal Loan EMI Calculator ICICI Bank – Visit Here
Use online Personal Loan EMI Calculator from ICICI to check your Eligibility and monthly EMI payments and compound interest of your Personal Loan. Perform a quick calculation and find your EMI. Personal Loan Interest Rate offered by ICICI Bank is 11.49%. You do not need to change this value to calculate Personal Loan EMI. The EMI Calculator will automatically calculate the EMI that would be applicable for a ICICI Bank Personal Loan
3…EMI Loan Calculator SBI Bank – Visit Here
4…Personal Loan EMI Calculator Axis Bank
Looking for personal loan emi calculator? Check out Axis Bank personal loan calculator to calculate your monthly outgo and how much your emi will be. You can choose your tenure and the amount you are comfortable to repay every month which suits your pocket. With the EMI Calculator, you can also calculate the compound interest.
5…..Personal Loan EMI Calculator Kotak Mahindra Bank
With Kotak Mahindra Bank Personal Loan EMI Calculator, you can determine the monthly instalment to be paid towards your personal loan in just three simple steps. You can input the loan amount and tenure, in the EMI calculator for a personal loan to see the EMI that you have to pay towards your loan.
- Loans from INR 50,000 to INR 15 lakhs with flexible repayment period ranging from 12 to 60 months.
- Quick and minimal documentation with faster approval at affordable interest rates
How to use the Personal Loan EMI Calculator?
Interest Rate –
The interest varies from bank to bank. You don’t have to make special efforts to make a calculation for the Personal Loan EMI. You can easily calculate your Personal Loan using the EMI loan Calculator. This rate is monthly reducing balance as well.
Loan Amount –
Using the slider, you can easily select your Personal Loan amount you are interested in borrowing. Let us say – Rs. 5, 00,000.
Again using the slider, you can easily select the term of your Personal Loan and it also helps you in the calculation of your monthly EMI. As the term of Personal Loan surge, the EMI value comes down. The EMI Calculator for your Personal Loan will do all the calculations for changing EMIs applicable for the changing terms in months.
Processing Fees –
At the time of paying out a Personal Loan, the bank will charge a processing fee. This fee will, normally, vary between 1% to 5% of the loan amount.
How do these Calculators function?
Calculations can be done with the help of two formulae. The first one helps in the calculation of the monthly interest rate and the second one calculates the EMI itself. Let us see how these formulae functions –
Calculation of monthly interest rate –
When you approach a bank to take a personal loan, you are mainly concerned with the interest rate that is being offered by the bank. Once you have the interest rate, make sure you have converted the interest rate into a monthly one, since the rate is always presented as an annual rate. In order to make the calculation, following formula is used i.e. interest rate/12.
Calculating the EMI –
While calculating EMI, things can get complicated. It considers the exact amount needed to borrow, the term, and the interest rate you will be charged. One key thing you need to keep in mind here is that the term of the loan is never calculated in years instead it is calculated in months. Following formula is being used to calculate the EMI –
Formula for Calculating Personal Loan EMI
E = P x r x (1+r)^n/((1+r)^n – 1)
What are the benefits of Personal Loan EMI Calculator?
Before you go ahead and take a personal loan, Personal Loan Calculator can be used to make the calculation for the personal loan EMI. With the help of this calculator, you actually get to know whether you will be able to repay your loan amount as it will display the EMI you need to make each month at a predetermined interest rate. Let us discuss the benefits of using an EMI Calculator for Personal Loan –
Estimating the cost of your loan –
What the loan will cost you is probably one of the major things you need to think about. You don’t need to worry as EMI Calculator for Personal Loans will handle this. It functions more like a personal loan interest calculator and it will help you to evaluate how much the loan will actually cost you with regards to interest.
Facilitates quick comparative pricing –
The moment you input different lender offers, you will have a fair idea of what the loan will actually cost you. You will be able to make a final decision once you have gone through varied offers based on the results projected by EMI Personal Loan Calculator.
If you depending on your mathematical skills, then you can’t deny the fact that the chances of making mistakes are more. Even if you are using a calculator, you end up making mistakes somewhere and there is nothing you can do about it as it is a human nature. With all your miscalculations, you will end up choosing a wrong loan. When you use online Personal Loan EMI Calculator, you can expect precise and correct results every time you calculate.
When you do all the calculations manually, you not only commit mistakes but at the same time it is also time-consuming as well. Well, there is a much better way to save your time than wasting your time making wrong calculations i.e. EMI Calculators. This EMI Calculator for Personal Loan will do all the calculations without wasting your precious time and quickly too.
Hassle free comparisons
Referring to multiple calculations, many different banks will provide you combinations of the loan amounts, interest rates, and different tenures. You will spend hours or probably days to calculate each one of them and it can surely become a tedious task. You can’t avoid miscalculations, but with Personal Loans Calculator for you can easily avoid these miscalculations and above all, you can easily calculate the EMI for different loans and make a choice for the one that suits you best.
What should you know before applying for Personal Loans?
There is no denying the fact that making a choice from some of the best personal loans is important. But, you should also consider the points that can play a pivotal role while applying a personal loan. Here are those important points –
- Make sure you are only borrowing the loan amount that you actually need and can afford.
- Making a budget can really come handy. All you need is to stick to this budget.
- Have complete knowledge of your APR (Annual Percentage Rate). You should know how much the loan would cost you in interest per year.
- Make sure your decision for having a Personal Loan bring long term benefits instead of having short term benefits.
- It is important you keep checking your credit report or CIBIL score.
- It is important not to overlook the importance of the different Personal Loan options such as – interest rates, prepayment charges, and various other key elements.
- Make sure you have holistic knowledge about the payment delivery.
- Conducting personal loan comparison will surely come handy. On doing a comparison, you get to choose the best offer.
- Use the Personal Loan EMI Calculator for calculating monthly personal loan payments in order to have the best loan.
- You should be having complete knowledge about the terms and conditions of the loan guarantor. It is imperative you have gone through the document thoroughly before signing the offer.
What should you know about Personal Loan Eligibility Criteria?
If you are a professional, salaried, or self-employed, you successfully qualify for a personal loan. Being an unsecured loan, the lender or the financial entity will ensure that they are not lending money to someone who is not able to repay the loan amount. In order to ensure this, these financial agencies consider following elements prior to offering personal loans –
It is important that as an applicant you qualify for the set applicant age bracket of the financial agency.
Repayment skills –
It is important that as an applicant you should be employed with your existing organization or you must be doing business for a certain number of years.
Current EMIs –
You should not have any pending loan liabilities or you should be capable enough to acquire additional debts.
Credit Rating –
One of the key elements is to have the bank specified credit score and appropriate credit history.
What are Frequently Asked Questions about Loan EMI Calculator?
- If I want to purchase a car for commercial reasons, should I go ahead with an auto loan or a personal loan?
At the moment, there are various private and public sector banks offering personal loan to the pensioners. But, there is a certain age gap with every bank, which you should not surpass at the time of repayment period. You have the provision of having personal loan up to a maximum of 20 times than your monthly pension amount.
How is the maximum EMI Amount calculated?
Most of the loan amount of the banks is based on the maximum EMI amount that you are capable of paying. Usually, this EMI is capped at a maximum of 40% of your net salary. In case you have existing loans, the maximum personal loan EMI will also come down accordingly.
Do I need to be worried about any penalty on the personal loan?
Most of the banks charge a prepayment penalty of a maximum of 3% on the pending principal amount of the personal loan.
Does my credit history and score affect the chances of getting a personal loan?
Most of the times there is a set criterion for offering a personal loan such as monthly net income and your last credit history. Credit score really plays a pivotal role in ensuring the success of your application along with the determining of the loan’s interest rate.