Calculate EMI for Personal Loan

Personal Loan EMI

Personal Loans are ‘All Purpose Loans’ i.e. these loan amounts can be used without any restrictions. These loans are sanctioned in a comparatively lesser time and are thus suitable to cater to immediate monetary requirements. Personal loans can be either Secured or Unsecured Personal Loans.

Secured Personal Loans: A secured personal loan requires an asset to be surrendered as a security for the loan. This loan is easier to avail if the borrower have had any predicament in past financial record. The advantage of this loan is that it generally comes with a lower interest rate (as compared to Unsecured Loans) as banks have a lower risk in these loans.

Unsecured Personal Loans: In case of an unsecured personal loan borrower need not surrender any asset as security. It might be more appealing as the borrower is free from risk of any asset being forfeited by the bank/ financial institution if loan is not repaid on time. However, the interest rate is higher in this type of loan.

Personal Loan can be availed for a wedding, vacation, to renovate a house or any other purpose without any restrictions. Availing any loan involves repayment in regular installments in a pre agreed time duration. These are known Personal Loan EMIs. Personal loan EMI includes a part of the principal amount and the interest on the loan amount.

The borrower must make sure to have a detailed study and analyze the amounts that needs to be borrowed and EMI they need to pay for the loan amount. Thus, they can analyze the total amount payment they need to do against the loan amount.

Personal Loan EMI Calculator Explained

Equated Monthly installment or EMI can be calculated using a basic formula:

Where:

• E: the amount that you will have to pay every month i.e. the EMI.
• P: the amount that you want to borrow i.e. principle loan amount.
• r: the rate of interest that is applicable but calculated on a monthly basis instead of the annual rate of interest. It is obtained by using the formula r = annual interest/12/100; e.g. if rate of interest is 15% per annum then r = 15/12/100 = 0.0125.
• n: the duration of the loan in terms of months. So if you select a term of 2 years, n will be 24 (i.e. 2*12).

Using Personal Loan EMI Calculator

The borrower must always pre assess the actual cost they need to incur by the end of installment period and must then choose wisely among the available schemes. The assessment of EMI is a time taking process if it is to be carried out manually. ‘Banking on Tips’ devised an EMI Calculator as a simple tool to calculate the EMI that is to be paid every month till towards the loan amount is paid off.

The entire task (of assessing EMIs and deciding the loan amount to be borrowed) requires a number of permutations and combinations with the principal to be borrowed, and duration in which loan is to be repaid. To easy this process ‘Banking on Tips’ designed an EMI calculator for the evaluation of monthly EMI. This borrower requires to provide the following inputs: the amount they want to borrow, the duration of the loan, the interest rates and the processing fee and calculator will do the rest.

• Principal loan amount (in Rupees)
• Loan tenure (in months)
• Rate of interest (monthly in terms of percentage)

• Breakup of total payment (in terms of percentage) i.e. total principal and total payable interest in form of visual pie chart which is easy to understand.
• Total payable EMI (in Rupees) to be paid every month.

‘Banking on Tips’ EMI Calculator Benefits

• Available Free of Cost
• Available 24*7
• Easy to use
• Instant and Accurate Results (Loan EMI Amount)
• Fit loans to budget
• Endlessly Adjustable
• Helps in choosing the loan tenure
• Helps in better planning of your finances
• Time Saving

Factors affecting Personal Loan EMI

The following factors affect the Personal Loan EMI

• The borrowed principal loan amount determines the total cost to be incurred by the borrower towards the repayment of loan. The higher the loan amount, the higher will be the EMI.
• The rate of interest imposed varies from one financial institution to another. The higher the rate of interest, higher will be the EMI. Thus it is advisable to research and choose the best among various available schemes.
• Loan Duration also plays an essential role in freeing the borrower from any financial burdens. Loan tenure must be chosen wisely.
• The lending authority imposes a certain percentage of loan amount as processing fees. Borrower must select a lender which has lesser processing fees.

FAQs

Do I need to Sign-up for accessing Personal Loan EMI Calculator?

No. The personal loan EMI calculator is absolutely free of cost to guide our readers. There are no hidden terms and conditions to use this calculator and can be freely used any number of times.

What is the Eligibility for Personal Loan?

• Age- The borrower must have attained a minimum of 18/21 years of age (varies as per bank guidelines) while opting for Personal Loan. The maximum age limit for personal loan is 60 or 65 years (varies as per bank guidelines).
• Income-Every lending authority prescribes a minimum monthly/ annual income for availing personal loan.
• Type of Employment- The borrower can be either a salaried employee, self employed professional or businessmen.
• Employment Experience- 3 years.
• Minimum 3 years of service in total.
• Tenure at present company must be more than 6/12 months.
• Business tenure of continuous 5 years.
• ITR of at least 3 years for self Employed professionals.

What are the documents required for Personal Loan?

The basic documents required to avail Personal Loan include:

• Age Proof
• ID Proof
• Application Form
• Photograph
• Residence Proof
• Income Proof
• Bank Statement

What is the minimum CIBIL score required to avail Personal Loan?

750 or more with a more positive credit history