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The Personal Loan Calculator helps in determining what monthly payments and total costs would be over the life of a loan. Whenever you avail a loan, your EMI is influenced by the final loan amount that you borrow, along with the repayment tenure. Since most loans come with fees and/or insurance, the end cost for them can actually be higher than advertised. The EMI calculator takes all of these variables into account to determine the real annual percentage rate or APR for the loan. Using this real APR (Annual Percentage Rate) for loan comparisons is most likely to be more precise.
Factors Affecting Your Personal Loan EMI
The key factors affecting your overall loan EMI amount payable include the following:
Loan principal – As a rule of thumb, the higher the loan amount borrowed, the higher will be your EMI as long as the tenure of the loan and interest rate remains constant.
Interest rate – The higher the interest rate, the higher will be your individual EMI payout as well as the total interest payable on your personal loan.
Tenure – When a longer loan tenure is opted for, individual EMI payments will decrease as compared to a shorter tenure for the same loan. But a longer tenure also results in higher total interest payable over the loan tenure.
These features of a personal loan especially the interest rate and loan principal can vary from one applicant to another. The following are the key applicant-specific factors that can impact personal loan:
Your credit history
Your monthly income
The loan amount
Your fixed monthly obligations including any outstanding loans
As a rule, the lower the credit risk that the lender perceives, the rate of interest offered is lower. Therefore, to get a good interest rate on a loan you need to ensure that you service all your outstanding loans on time, and have enough income over your fixed obligations to service the loan you are applying for.
Benefits of Using a Personal Loan EMI Calculator
The Personal Loan EMI Calculator is designed to help you understand the monthly amount that you will pay on your loan. With the help of the personal loan EMI calculator, you can avail the following benefits -
Know the Personal Loan EMI in Advance – Using the personal loan EMI calculator, you can get the estimated amount that you need to pay on a monthly basis for the repayment of your loan
Manage your Budget – By knowing in advance the amount that you need to pay on a monthly basis, you can manage your finances around your EMI and spend accordingly.
Find the Right Loan Tenure – Since you can know the total Principal amount and the total interest payable, a EMI calculator will help you in choosing a loan tenure you are comfortable with as per your budget.
Saves Time and is Accurate – Calculating EMI via the traditional manual method is a time-consuming and complex process, often prone to errors. A EMI calculator can get you the accurate answer within seconds.
How Does Personal Loan EMI Calculator Work?
A Personal Loan EMI Calculator works on a simple algorithm, it calculates the EMIs, Interest Outgo and Total Amount Payable of a personal loan in a hassle-free manner. The EMI calculation will be done automatically for you, there are also sliders, through where you can increase or decrease any of these elements based on your requirements. The moment you fill in the required credentials into the device such as the Loan Amount, Tenure and Interest Rate, this tool instantly fetches the value for you in a matter of seconds. It gives you the exact and accurate calculations in the best manner, hence eases the burden from your shoulder. This is the reason that this tool has been widely used by the borrowers to know the exact calculations of their monthly instalments.
Personal loan EMI Calculation Formula
The formula used by the personal loan EMI calculator is:
EMI = [P x (R/100) x {1+(R/100)}^N]/[{1+(R/100)}^(N-1)]
Where,
EMI = equated monthly installments
P = loan principal i.e. amount borrowed
R = loan interest rate (monthly basis) = annual interest rate/12
N = Loan tenure in months
The above formula works for calculating EMIs for all kinds of loans and not just loan EMI. With the availability of online EMI calculators, it is no longer necessary to perform this tedious calculation the old manual ways as the result can be obtained instantly by providing the required data online.
How Much EMI Can You Get on a Personal Loan?
The Loan EMI options offered to a borrower will pretty much depend on their income and existing obligations if any. These two factors determine the loan repayment potential of an individual. Lenders can grant you the loan amount where you are allowed to have an EMI up to 60% of your net take-home income. However, if you can do it with a lesser amount, it will be better. The reason being personal loans are unsecured loans and can come with a higher rate of interest. Having a reduced loan amount will mean a much lower EMI, this gives you extra space to focus on your other obligations. A sudden rise in the monthly expenses can’t be ruled out, and if that happens, having a reduced EMI will come to your rescue.
With Bajaj Finserv Personal loan, you get flexible repayment tenure with easy access to EMIs over a period of 12-60 months. There are no hidden charges on your loan and you can easily access your loan account anytime, anywhere. Their hassle-free online application process with minimal documentation of loan makes it an ideal choice for getting a loan. With personalized pre-approved offers, instant approvals, and quick disbursal of loan, on the Personal Loan App by Finserv MARKETS, you can get the most attractive interest rates on loans. By applying for a Bajaj Finserv Personal loan you can check your CIBIL score for free and also obtain a Financial Health Check Report (FHCR). They also provide you with an EMI calculator that gives you the exact monthly outflow of your EMI amount, this makes your loan repayment much easier.
“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.”
