Personal Loan EMI Calculator

Use our Personal Loan EMI calculator

Personal Loan EMI Calculator Online

Now that you have decided to avail a personal loan, it is critical that you plan your monthly payouts or EMIs alongside your other financial obligations. The aim is to pay the EMI on time without defaulting on it. To ensure this, you need to know the exact monthly outflow of your EMI amount. The Personal Loan EMI Calculator by Finserv MARKETS is the quickest way to know this.

There are three important inputs required when using the EMI Calculator:

• Loan amount

This is the principal amount of Bajaj Finserv Personal loan that you wish to avail from us.

• Rate of interest

The rate of interest is the actual cost of your personal loan application.

• The tenure of the loan

The next input is the loan tenure or loan duration. This the total duration in months or years in which the EMI will repaid.

How is the Personal Loan EMI calculated?

An EMI calculator uses a simple formula to determine your EMI. The formula used is:

E=P*r*(1+r)^n/((1+r)^n-1)

Where ‘E’ is EMI,

‘P’ is the principal loan amount

‘r’ is the rate of interest calculated on a monthly basis

‘n’ is the tenor/duration of the loan

Let us say you borrowed INR 10 lakh as a personal loan from a bank at the rate of 12% for a period of 10 years or 120 months. Then your EMI as per the formula would be: INR 10 lakh *0.010*(1+0.010)^120/((1+0.01)^120-1))= INR 22,244 per month. In a span of 120 months, you will end up paying INR 13,34,677. Out of this, INR 3,34,677 will be towards the interest.    

Personal Loan EMI Calculation Example:

How to use the ‘Personal Loan EMI Calculator’?

Calculating your loan EMI is really a simple process. You need to click on the Personal Loan EMI Calculator on Finserv MARKETS website. After that, all you need to do is to input the following:

• Personal loan amount

• Rate of Interest

• Loan tenure

You will get the amount of EMI that you need to pay for the Personal Loan according to those inputs instantly.

Benefits of a ‘Personal Loan EMI Calculator’

A Personal Loan EMI Calculator helps you to know the monthly amount that you would require to set aside for repayment of loan. Once you are sure that you can meet the EMI payments regularly, you will be able to enter into an agreement with us. You can also negotiate on the rate of interest or the tenure of the loan. This will help you plan your finances easily and more effectively.

Personal Loan repayment schedule

Personal Loan EMI Calculator from Finserv MARKETS includes a repayment schedule. A repayment schedule is a calendar of your periodic payments that you need to do throughout your loan tenure. The schedule separately shows the amount of the principal and interest component in each EMI that needs to be paid.

How to reduce your Personal Loan EMI?

An EMI can affect your financial liquidity until you pay off your loan. However, here are some steps that you can use to reduce the EMI and make the best of financial possibilities.

Negotiate for a lower interest rate: A low interest rate can save you big amounts. So, depending on your association with the lender, negotiate with them before arriving at the best rate.

Maintain a good credit score: The credit score goes a long way in determining your loan eligibility and the interest rate you pay. A strong score will let you enjoy lower EMI costs.

Opt for a longer repayment tenure: A longer tenure gives you more time to make repayments. You can in turn pay your EMIs in smaller installments.

Look for good deals: Finserv MARKETS lets you choose from some of the best lenders in the market. Pick the best deal based on your repaying capacity and requirement.

What are the Factors that affect Personal Loan EMI?

The following factors affect your Personal Loan EMI: 

Rate of interest:

Interest rate is the applicable rate that is applied on the total borrowed principal. A lower interest rate lowers the EMI and vice versa.

Loan amount:

The loan amount is the total amount sanctioned by the lender. EMI is directly proportional to the loan amount. The higher the loan amount, the higher the payable EMI.

Loan Tenure:

A longer loan tenure will reduce the EMI but with an increase in interest rates. On the other hand, a shorter tenure increases the total EMI payable. So, choose the loan tenure wisely.

What happens if Personal Loan EMI is missed

There are several repercussions that you could face upon defaulting on an EMI. These include:

Penalties:

A penalty of about typically 1%-2% may be charged against a missed EMI.

Creditworthiness:

Missed EMIs can reduce your creditworthiness and affect your reputation. In spite of having a good credit score, it can deter lenders from offering you a loan.

Credit score:

Defaulting can have a severe effect on your credit score. A score of above 750 is considered healthy. However, every missed payment can bring down your score and thus affect your future chances of availing a loan. 

Benefits of Choosing Finserv MARKETS

Personal Loan at Finserv MARKETS offers tailor-made to fulfil all your financial needs. You can enjoy end-to-end online process, minimal documentation and unlimited withdrawals with Hybrid Flexi Personal Loan. Get to know more about the benefits of availing our Personal Loan.