The last couple of years witnessed an exponential increase in the disbursal of personal loans. According to the Reserve Bank of India, unsecured loans, including credit cards and personal loans rose up to ₹576,600 crores at the end of the financial year 2018 (1). Further, RBI registered that personal loans accounted for nearly 96% of new bank loans in the financial year 2018. From refurbishing your home to planning your big fat wedding, personal loans help with almost everything.
One of the main plus points of a personal loan is their flexible repayment tenures and low-interest rates. This makes the loans affordable and easy to pay off. Further, a personal loan is an unsecured type of loan. You can avail of it without putting up any collateral.
Calculation of EMI
Even before applying for a personal loan, it is advisable that you find out the EMI amount you will be required to pay for during the repayment tenure.
This is crucial for a number of reasons, such as:
- The EMI you will be paying will drastically affect your monthly budget. Allows you to know if you can incur the EMI expenses and helps you to prepare your monthly budget in advance.
- Lets you select your repayment tenure according to your budget
- The available EMIs and your capability to repay the EMIs will reflect on your credit score. If you default on even a single EMI, it will have a negative impact on your credit score. Knowing your EMI repayments in advance helps you ensure that your credit score is minimally affected.
- By calculating the EMIs you would be required to pay different lenders for different loan plans beforehand, you can make handy comparisons and settle on the plan that suits you financially.
Therefore, it is advisable that you check your personal loan EMIs beforehand to maintain your creditworthiness.
How do Personal Loan EMI Calculations work?
Depending on the lender you opt for, you would have to pay either a flat rate of interest or a reducing balance interest rate. A reducing balance rate takes into account solely the outstanding loan amount to assess your interest rate. Here’s how it is used to calculate your EMI amount:
R= Rate of interest
n= the loan repayment tenure
On the other hand, flat rate interest is a method by which you take into consideration only the principal loan amount. The formula for a flat rate of interest is:
Pmt= periodic payment
PV= initial amount
n= repayment tenure
To calculate your personal loan EMIs, you can simply visit Personal Loan EMI Calculator on Finserv MARKETS to get the EMI amount.
Personal Loan EMI Calculators
Calculating your EMIs is no walk in the park. If you have applied for a personal loan at any point of time, you would have experienced the hassle of computing your eligibility, EMI amounts, and EMI tenures. This is where a Personal Loan EMI Calculator can come in handy.
You can, therefore, opt for Personal Loan EMI Calculator at Finserv MARKETS for the same.
How does the personal loan EMI calculator work?
You need to add these inputs while checking your personal loan EMIs:
- The loan amount: This is the principal amount you would be applying for.
- Your interest rate: The rate of interest is the percentage of the principal amount you will be paying to the lender.
- Loan tenure: Your loan tenure is the period during which you will be repaying your personal loan.
You can also read about how to calculate Debt to Income Ratio.
Benefits of using personal loan EMI calculator
As opposed to manual calculations, a PL EMI calculator offers a whole host of distinct benefits. They include:
- Accurate: Such online tools are known for their accuracy. An EMI calculator is less prone to error and can give you a more accurate picture of what your repayments would look like.
- Time-saving: A personal loan EMI calculator saves you the time and effort that might’ve been spent on computing a complex EMI repayment schedule. You get your expected loan EMI within seconds of entering the relevant information.
- Offers innumerable comparison: Since loan amounts may vary across lenders, you can either choose to prepay or adjust the tenure of your loan based on your convenience. If your selected loan EMI is heavy on the pockets, you can simply change the EMI repayment tenures. Thus, the PL EMI Calculator offers many permutations and combinations of EMI options to select from.
It is quite nifty to use the EMI calculators available online as it greatly simplifies and quickens the process. All you need to do is just enter the required variables. It will not just save on time but will help you choose a loan that personally suits you best.
You can, therefore, opt for Personal Loan EMI Calculator on Finserv MARKETS to handily calculate your EMI outgo. The Personal Loan EMI Calculator will cater to your personal needs and will help you know the EMIs to be paid, even before you take the personal loan.
Once you have determined your EMIs, you can apply for a personal loan online on Finserv MARKETS and get loan amounts of up to ₹25 lakh. You can choose an EMI tenure ranging anywhere between 12 to 60 months, that suits your needs and goals. Your loan will be approved in minutes and will be disbursed in your loan account within 24 hours!
Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.