|Principal Amt||Monthly payment(EMI)||Interest Amt||Total Amt Payble|
|₹ ||₹ ||₹ ||₹ |
What is a Personal Loan EMI?
Personal loans are unsecured loans offered by banks without any collateral such as your home, flat, property, etc. Personal loans are usually available at fixed interest rates where interest rates are based on your credit score. The better your credit score, the lower your interest rate and vice-versa. EMI is the amount calculated at the time of availing a personal loan by lending institution against loan amount based on rate of interest and loan tenure.
A personal loan is offered at a higher interest rate than a secured loan due to higher risk involved as you are not asked for any collateral to ensure repayment. These personal loans allow you to repay them from 12 to 60 months
When you take a personal loan, each EMI, that you are required to pay monthly, consists of payment towards the principal and the interest on the principal. Hence, the EMI of each personal loan is structured differently on the basis of Loan Amount, Loan Tenure and Interest Rate.
Personal Loan EMI Calculator
The Personal Loan EMI calculator is an easy-to-use tool that you can use by following some simple steps:
Visit the Codeforbanks page and pick the Personal Loan EMI Calculator from the Financial Calculator menu. You will be asked to input the following details: Loan amount, loan tenure and the rate of interest.
Once you enter the three components, the EMI Calculator will generate the EMI amount you have to pay, you may try different parameters as well to find an EMI option that best suits your personal planning.
How does an EMI Calculator work?
An EMI Calculator is works arount below three factor:
- Loan Amount:This is the original amount that an individual borrows from a bank or any other financial institution. Higher the loan amount, the higher will be the EMI that you pay for the loan taken.
- Tenure: The given time period for the repayment of the loan. Since the repayment is done every month, the tenure is calculated in months and not years.
- Rate of Interest: This is the rate at which interest is charged on the loan amount. The interest rate varies on lender to lender from which you are taking the loan.
Benefits of EMI Calculator
Even before you apply for a loan, you need to know if you have the ability to obtain a loan. This can be done with the help of a EMI Calculator. Calculating your EMI will let you budget better in order to make the EMI payments on time. The other benefits of the EMI Calculator include:
- Accessibility:This online personal loan calculator is accessible from anywhere from any device.
- Accuracy: Using a EMI Calculator is more accurate than calculating the numbers yourself.
- Rate of Interest: As stated above, EMI calculations need to be done even before you start your loan application. A EMI Calculator can help you with this.
- Fast Calculation: As soon as you enter loan amount, tenure (in months) and interest rate, it immediately calculates the EMI on a click.
- Save Time: You need not do all the calculations on your own or you are not required to go anywhere for getting to know the EMI amount. It will display the EMI instantly.
- Amortization Table: It also provides whole amortization table comprising with date, principal, interest and EMI for the whole tenure. This will be on monthly basis. Suppose you take tenure of 10 years (120 months), the table will contain all the details for full 120 months.
Factors Affecting Personal Loan EMI
Personal loan EMI will affect by several factors because it depend on loan amount, loan tenure and rate of interest. Any change in these variables will affect the EMI amount. Hence, the EMI of each personal loan is structured differently on the basis of Loan Amount, Loan Tenure and Interest Rate.
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