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The Muthoot Finance personal loan equated monthly instalment (EMI) calculator at Bajaj Markets helps you calculate your total EMI outflow within a few seconds. There are several advantages to using this tool. This article will help you explore all of them and will also take you through all the variables that will affect your Muthoot Finance personal loan EMI. 

Loan Amount
Tenure
  • Months
  • Years
Rate of Interest
%

Your monthly EMI is

at % interest rate for months

Total Amount Payable
Principal Amount
Total Interest
Year Principal Interest Balance

How to Calculate the EMIs for Muthoot Finance Personal Loan?

The Muthoot Finance personal loan EMI calculator is a simple-to-use algorithm-based tool which needs you to only feed in three kinds of information, namely your principal amount, your repayment tenor (in months) and your applicable interest rate. Once you have entered all of that information in the relevant fields, you will see your total EMI outflow flash in front of your screen within seconds.

Muthoot Finance Personal Loan EMI Calculation Formula

If you want to calculate your Muthoot Finance personal loan EMI manually, you can use the following formula:

Muthoot Finance Personal Loan EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Where,

EMI stands for your Equated Monthly Instalment amount,

P stands for your principal amount,

R is your monthly interest rate, and

N is your loan repayment tenor (expressed in months).

Muthoot Finance Personal Loan EMI Calculation

Here are a few Muthoot Finance personal loan EMI amounts that would be payable based on an interest rate of 13.79% for various repayment tenors:

Loan Amount

2 years

3 years

5 years

₹1 Lakh

₹4,791

₹3,408

₹2,316

₹5 Lakhs

₹23,957

₹17,038

₹11,580

₹10 Lakhs 

₹47,914

₹34,076

₹23,160

Benefits of Using the Muthoot Finance Personal Loan EMI Calculator

There are several advantages of using a Muthoot Finance Personal Loan EMI Calculator. They are as follows:

  1. You will know your future liability: The Muthoot Finance Personal Loan EMI calculator will help you determine your monthly EMI obligation so that you can make room for it in your monthly budget easily.

  2. Enter an agreement confidently: Once you have decided whether or not you can pay your personal loan EMI without any hassles, it will become easier for you to take a call. You can additionally demand for a lower rate of interest or a longer repayment tenor if your credit score permits it.

  3. Helps you figure out the right loan repayment tenor for you: Once you have determined the principal amount you will need and the interest rate it will attract, you will be able to decide on a loan repayment tenor that you will be most comfortable with by just altering the repayment tenor on the tool and seeing what your EMI obligations will look like after.

  4. Time-saving and accurate: Calculating your EMI amount manually through the traditional method can be an energy and a time consuming affair. On top of that, there is always more room for errors when you do it the old-fashioned way. That is certainly not the case for the Muthoot Finance personal loan EMI calculator, which will give you accurate results within seconds.

Factors Affecting Muthoot Personal Loan EMI Amounts

Some of the factors that will directly affect your Muthoot Finance personal loan EMI amount are as follows:

  • Principal amount: Your principal amount will directly influence your monthly Muthoot Finance personal loan EMI outflow. If your personal loan principal amount is small, your EMIs will be small as well. Larger loan amounts, on the other hand, would translate to high EMI payments.

  • Interest rate: The interest rate is the money that the bank earns for lending its financial resources to you which is expressed as a percentage. Higher interest rates would naturally translate to higher EMI amounts.

  • Loan repayment tenor: Tenor refers to the period over which you will need to repay your loan. Smaller loan repayment tenors will mean higher EMI amounts for you, whereas long loan repayment tenors will mean that you will pay small EMI amounts every month.

  • Your income: Your annual income will be assessed before the rate of interest on your borrowing can be decided. If your monthly income falls on the lower end of the income eligibility criteria, you may have to pay a higher interest rate, which will result in higher EMI amounts. But, if your monthly income is relatively high, you will have to pay a lower rate of interest as the lender will think of you as a creditworthy individual due to it, which will mean that you will pay lower EMI amounts every month.

  • Your age: Your age also plays a crucial role in arriving at your interest rate. If you are inching closer to retirement, you will be charged a higher interest rate. If you are in your 20s or 30s, it is possible that you will get a Muthoot Finance personal loan at a lower rate of interest.

How to Pay Muthoot Finance Personal Loan EMI

You can pay your Muthoot Finance personal loan EMIs in the following ways:

  • ECS (Electronic Clearance System): The ECS system will help you make quick and easy repayments without having to go through a lot of paperwork.

  • Standing Instruction: Standing instructions mean that you can instruct the bank to pay a fixed amount of money at regular intervals to a particular part. This is one way in which you can pay off your personal loan and ensure that you do not miss a single payment.

  • Cheques: If none of the above-mentioned methods work for you, you can simply submit the cheque at your nearest Muthoot Finance branch to pay your personal loan EMI.

How to Decide the Right Amount of EMI?

The right amount of EMI will entirely depend on your monthly salary, repayment capacity and your rate of interest. Additionally, you should make note of the following factors before deciding on the EMI amount that you will be most comfortable paying:

  • Your existing obligations: The most important factor to consider before taking a loan is to see if you will be able to manage its repayment along with that of any other loans that you may be paying off at the moment, if any. If you have any current credit obligations at the moment, you must consider going for a longer repayment tenor for a fresh loan. But, remember that long repayment tenors would mean that you will pay a higher amount as interest over time.

  • Your loan amount: Your principal personal loan amount will directly impact your monthly EMI obligations, hence you must decide the amount you will need carefully. We would advise you to keep this amount as low as possible since personal loans are often collateral-free, and hence they attract high interest rates.

Frequently Asked Questions

  • ✔️Why should I calculate Muthoot loan EMI before taking a loan?

    Applicants should calculate the EMI payable on Muthoot Finance Personal Loans before taking the loan so that they may determine whether they will be able to pay it off with their existing income and in addition to prior financial obligations.

  • ✔️Is there any processing charge on a Personal Loan from Muthoot?

    Yes. Muthoot Finance charges a processing fee of 2%-4% of the loan amount sanctioned.

  • ✔️How does Personal Loan repayment happen?

    Personal Loans are repaid in the form of EMIs over a predetermined period of time. EMI would include a portion of the total loan amount borrowed as well as the interest due to the bank.

  • ✔️Can I have a co-applicant while applying for a Personal Loan with Muthoot?

    Yes, you can have a co-applicant while applying for a Personal Loan with Muthoot.

  • ✔️Can we pay more than the EMI with Muthoot Finance?

    Yes, in order to reduce the interest rate, you can pay more than the EMI.

  • ✔️How can I pay my Muthoot loan EMI?

    You can pay the EMIs through the ECS (Electronic Clearance System), Cheque, Standing Instruction / Debit Mandate.