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Looking for personal loan
Personal Loan EMI Calculator
Calculate your Personal Loan EMI & Total Interest Due
home loan EMI Calculator
car loan EMI Calculator
Your Monthly Personal Loan EMI: 4,402
Monthly amount paid to your Personal Loan provider
Your Amortization Details (Yearly/Monthly)
Your debt repayment schedule in regular instalments over a period of time.
(We’ve broken it down for you!)
Personal Loan EMI calculator
Loan parameters needed for using the EMI calculator:
- You need to know the loan amount, processing fee and the interest rate of your car loan, home loan or personal loan. If you plan to prepay your loan, then figure out the exact or approximate amount you intend to prepay and the periodicity of such payments depending on your loan agreement.
- Use the sliders and input boxes provided in the calculator to key in or match these loan parameters.
- The calculator will then work out the exact pattern of your loan repayment. Aspects such as the amortization table, the total interest outgo, the timelines of your loan repayment etc. will be displayed in accurate detail enabling you to make smart loan decisions!
Read on to learn how you can figure out the functionality of the different loan parameters and what role they specifically play in your loan repayment pattern. BankBazaar.com?s EMI calculator is a fantastic tool that can help you manage the various loan parameters to become debt free in the most efficient manner possible.
How it works?
- Loan Amount: Enter the Personal Loan amount using the slider or the edit box you wish to borrow. For better financial planning our monthly outgoings (EMI?s) should not be more than 40% of your monthly income.
Interest Rate: This is the Interest rate that is charged on the money borrowed. This rate is monthly reducing balance.
Tenure: Select the period for which you wish to take the Personal Loan. Generally personal loan tenures range from 1 to 5 years.
- EMI: By entering the four fields you can see your monthly EMI which you have to pay to the lender to pay off your personal loan. Based on your loan EMI output you can check your personal loan eligibility in real time at BankBazaar.com. Based on your eligibility BankBazaar will show you customized personal loan offers from various banks. You can then select the best offer and apply online.
- Starting Balance: The starting balance of any given period corresponds to the principal amount that is owed to the bank at the beginning of that period.
Interest Paid: This is the portion of your monthly payment that is applied towards interest.This portion will keep reducing each successive month as the personal loan matures. The rest of your monthly payment is applied towards the personal loan principal.
Principal Paid: This is the portion of your monthly payment that is applied towards the loan principal. This portion will keep increasing each month as the loan matures. The rest of your monthly payment is applied towards interest.
Ending Balance: The ending balance of any given period corresponds to the principal amount that is owed to the Bank at the end of that period.
Know more about Personal Loan EMI Calculator
When you decide to take a personal loan, one of the most valuable tools you will ever use with reference to this loan is the Personal loan EMI calculator. Unlike home or car loans, a personal loan can be one of the most convenient sources of funds since it does not come with any conditions attached to it regarding how the money is used. However, there are a lot of things that need to be taken into consideration when deciding on the ideal amount to borrow. Customers should consider:
- The amount required to meet their financial requirements
- The amount of interest they will have to pay
- The interest rate at which the loan will be offered
- The time period within which the loan should be repaid
- The bank or non-banking financial company (NBFC)
Additionally, the borrower should also take into account which lender he or she should approach for the loan – a bank or a non-banking financing company (NBFC). The personal loan EMI calculator can help you make these decisions.
What is an EMI Calculator for Personal loans?
How does the Personal Loan EMI Calculator work?
Calculating the monthly interest rate:
When you approach a financial institution in order to take a personal loan, the main piece of information you are looking for is the interest rate that is being offered. Once you know it, and before you start using it to calculate the EMI, you need to convert the rate into a monthly one since the interest rate is always presented as an annual rate. To do so, the following formula is used.
Monthly interest rate = Interest rate/12
For example, if the interest rate offered to you for your personal loan is 18% per annum then your monthly interest rate will be calculated as follow:
This means that the monthly rate of interest will be 1.5%.
Calculating the EMI Calculating the Personal loan EMI is a bit more complicated. It takes into account the amount you want to borrow, the duration you want to borrow for, and the interest rate that you will be charged. The thing to note here is that when you consider the tenure of the loan, you won’t consider it in years, but in months. To find the EMI the following formula is used: E = P x r x (1+r)^n/((1+r)^n – 1) Here:
- E will be the actual EMI that you will have to pay.
- P will be the loan that you want to take
- r is the monthly interest rate that is being offered
- n is the tenure of the loan considered in months
Once all the relevant details have been entered into the calculator, it will tell you the amount you will need to pay every month for the loan.
Features and Benefits of a Personal Loan EMI Calculator
Accuracy: If you were to perform this calculation manually, with a pen and paper, chances are that you will end up making a mistake sooner or later. Since even a small error can hugely impact your calculations, it is advisable to use a personal loan EMI calculator wherein the chances of occurrence of an error is reduced significantly. With this tool, you will be able to perform the same calculation accurately within seconds.
Saves time: Speaking of seconds, the pen and paper method can take a lot of time which means that you could be sitting calculating away to glory when you should really be out enjoying life with your family and friends. With the calculator, you can do just that because this tool will allow you to do multiple calculations in minutes.
Easy comparisons: It is common for different banks to offer you various permutations and combinations of loan amounts, tenures, and interest rates. To actually sit and calculate the EMI for each one of them could turn into a tedious task and may end up, through an error in calculations, leading you to the wrong loan. Using the calculator, you can quickly evaluate the EMI for different loans to see which one suits you best.
Fits loans to budgets: If you are going in for a personal loan then odds are that you will be concerned about the EMI that you need to pay. It would be natural to be concerned since this amount will impact your monthly income and finally affect your other finances. The personal loan calculator can help sort this problem out by calculating the EMI in no time and giving you the numbers you need to calculate your monthly budget.
Endlessly adjustable: There is no limit to the number of times you can calculate and recalculate an EMI. Suppose, you found a bank that will offer you the loan amount you want and that too at an attractive interest rate. What you should do now is to see how much you will pay every month for it. Once you calculate the EMI, you realise that the amount is too high for you to afford. However, using this tool, you can adjust the loan amount and tenure with ease until you find out the EMI that can fit your budget.
Processing fee accounted for: While the basic EMI calculator for personal loans will only take into account the amount borrowed, the tenure and the interest rate, there are calculators that also take into account the processing fee that the bank will charge and tell you how much your EMI will be including that fee.
Parts of the EMI Calculator
Graphic representation When you are done entering all the relevant data and have already been told what you can expect to pay every month, there is still one thing you need to know – the structure of the loan. Personal loan EMI calculators can tell you the basic structure of your loan by calculating the total amount that you will end up paying over the years. Along with this, you can also learn how much will be the principal amount and how much will be the interest in each EMI of your loan. This information can be presented to you in the form of a pie chart or any other manner that manages to represent the information pertaining to the loan in a correct manner. The biggest advantage of this tool is that it is extremely easy to understand. It can easily tell you the exact amount you will have to pay overall and how much of that amount will be the interest. Using this feature, you can find out the EMI amount that fits your budget while paying the least amount of interest possible and fulfilling your credit needs. This tool can also help you affirm your decision to take the loan.
All in all there is no denying the fact that if you intend to take a personal loan then a Personal loan EMI calculator can be your best friend in helping you make the right choice and pick the best personal loan for you.
Personal Loan Interest Rates 2018
Interest on personal loans varies from bank to bank. A lot of factors such as the age of the applicant, the credit score, salary amount, existing loans, etc., may affect the interest rate charged on personal loans. Here’s the range of interest rates at which the top 20 banks in India grant personal loans as on July 2018: