personal loan EMI calculator

Understanding Personal Loan EMIs and Interest Rates: A Comprehensive Guide

Personal loans have become a popular choice for individuals facing financial crises or various situations that require immediate funds. With their easy application process, minimal documentation, and flexible terms, personal loans offer a convenient solution for managing your money. When considering a personal loan, it’s crucial to be aware of the Equated Monthly Installment (EMI) and the accompanying interest payments. In this article, we will delve into the details of personal loan EMIs, their calculation, and the significance of interest rates.

What is a Personal Loan EMI?

An Equated Monthly Installment (EMI) is a fundamental aspect of a personal loan. It entails paying a fixed amount of money each month to gradually repay the entire loan, which comprises the principal loan amount and the interest. The EMI amount is divided efficiently throughout the tenure to ensure systematic and complete repayment.

To facilitate better financial management, it is essential to understand how to calculate the personal loan EMI formula. While using an EMI calculator for personal loan calculation can simplify the process, grasping the underlying formula empowers borrowers to make informed decisions regarding their finances.

Understanding an EMI Calculator for Personal Loan

An EMI calculator is a valuable tool that helps borrowers determine their monthly loan payment amounts. By considering variables such as the principal loan amount, repayment duration, and interest rate, the calculator provides quick and accurate results, saving time and effort.

To calculate the EMI, the following formula is employed:

EMI = [P x R x (1+R)^N] / [(1+R)^N-1]

In this formula:

  • P represents the principal amount
  • R signifies the rate of interest
  • N denotes the total loan tenure in months

Let’s consider an example to illustrate this calculation. Suppose Person X takes a personal loan of INR 10 lakhs for 2 years with a 15% interest rate. The EMI can be calculated as follows:

P = 10,00,000

R = 15%

N = 24 months

EMI = [10,00,000 x 15/100/12 x (1+15/100/12)^24] / [(1+15/100/12)^24-1]

Therefore, the monthly EMI amounts to INR 72,730.

Calculating the Interest Rate

The interest rate plays a vital role in determining your loan repayments. To calculate the interest rate (R) on a personal loan, the following formula is used:

R = Annual interest rate/12/100

  1. Comparing loans and selecting suitable options
  2. Saving time and minimizing errors
  3. Determining a loan tenure that aligns with your plans
  4. Tracking your repayment schedule
  5. Cross-checking EMI details with the lender

Referring back to our previous example, the interest rate calculation would be:

R = 15/12/100

R = 0.0125

The personal loan EMI calculator streamlines this calculation as well, enabling you to find the interest rate quickly and accurately. Using the calculator provides several additional benefits:

Summing it up

To ensure a secure loan experience, it is crucial to have a clear understanding of your overall borrowing costs. Utilizing an EMI calculator for personal loans is a smart approach as it provides precise calculations without the need for complex manual computations. Additionally, comprehending the EMI and interest rate formulas keeps you well-informed about your financial flow.

Take a proactive step towards efficient financial management with Fi Money. Access instant loans swiftly and let the app automatically track your payments. Avoid late EMI fees by utilizing in-app payments and enjoy the benefits of smarter solutions offered by Fi Money—a revolutionary app that addresses your monetary concerns effectively.

Frequently Asked Questions

Q: What is the EMI for a 5-lakh personal loan? How to calculate the personal loan EMI formula?

A: To calculate the EMI for a 5-lakh personal loan, you can use the following formula: EMI = [P x R x (1+R)^N] / [(1+R)^N-1]. Substitute the variables with your specific principal amount, interest rate, and tenure to determine the EMI accurately.

Why use a Personal Loan EMI Calculator?

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A personal loan EMI calculator is a digital tool for online calculations that banks and other financial institutions provide on their websites. Using a personal loan calculator, you may quickly calculate your loan EMIs.

You can plan your finances using this personal loan calculator to determine the amount you will pay for the loan. To use this calculator, you should enter variable numbers such as the loan amount, offered personal loan interest rates, and the preferred repayment tenure.

Why Should You Use a Personal Loan EMI Calculator?

#1 It’s Easy to Use and Cost Nothing

A personal loan calculator can be used without any technical expertise. You need to enter a few variable values to achieve the required outcomes, making it straightforward to use. Additionally, it is accessible online and is free to use.

#2 Anyone can use it

There are numerous platforms where you can get a personal loan EMI calculator. You can find it on the lender’s website or mobile app operated by reputed lending institutions. Additionally, you can access it at any time of day and any number of times. You can still use the calculator even if you haven’t applied for a loan yet.

#3 It Provides Accurate Responses

You should not worry about if the results of a personal loan calculator will be accurate. A personal loan calculator consistently produces results that are accurate and error-free. With a personal loan calculator, you can easily find your EMI without tedious manual calculations.

A personal loan calculator can give you crucial information about your loan, so you should always use it before applying. Additionally, it can help in choosing a suitable tenure. Remember that the figures shown by the calculator are only indicative and may change.

personal loan eligibility check

Steps to Apply for a Personal Loan

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Thanks to digitisation, getting a personal loan has become instant. These loans are perfect for handling emergency expenses. Personal loans do not need collateral and can be availed by involving minimal documentation. One can apply for an instant personal loan online through lender websites or mobile apps. Let’s check how

Steps to Apply for a Personal Loan:

  • Log in to the app/ website.
  • Register using the OTP verification.
  • Click on the personal loan application form and fill in the basic details required.
  • Scan and upload the requested documents. Collating these documents beforehand ensures quick submission.
  • Submit the application.

Once these steps have been followed, the app/website immediately notifies the applicant of the loan eligibility.  After that, the lender calls the applicant to further the process by explaining the terms. On accepting the terms and conditions, the lender verifies the documents. Once the records and information provided are verified digitally, the loan is sanctioned within 24 hours. The loan amount is then disbursed to the borrower’s bank within the next 30 minutes. Following these easy steps accelerates the personal loan process and also makes applying for the loan easier. 

Before applying for a personal loan, it is imperative to check if you meet the eligibility criteria laid out by the financial institution. Lenders reject applications that do not meet their eligibility criteria. Choosing the financial institution that offers lower interest rates based on the current personal loan interest rates is also important. Keeping in mind these factors will make your monthly payments affordable, and you can repay the loan quickly. 

Additional Read: Complete Guide to Personal Loans for Women

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Important Tips for Personal Loan Repayment

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Personal loans repayments can be smoother if it is planned well. So here are a few tips for saving yourself from repayment hassles or financial burdens. Let’s check it out.

  • Do Not Delay Repayments

Late payments attract hefty penalties, and these penalties will unnecessarily burden your pocket and bring down your credit score. Hence planning your repayment schedule using a personal loan EMI calculator can help with missing out on repayments due to higher EMIs. Additionally, activation of auto-debit payments with the lender will help you repay loans on time without worrying about missing the timelines.

  • Do Not Overborrow

Personal loans are unsecured loans and hence come with higher interest rates. Calculating the exact requirement in advance will help you not to pay interest rates unnecessarily for an amount you never required. Proper planning can help you save a lot of money and repay without hassles.

  • Opt for a Reasonable Tenure

Longer tenures with lower EMI may look attractive, and however, they attract higher interest rates. Choosing the shortest tenure possible based on your affordability can help save on the interest rates. Though shorter tenure attracts larger EMIs, the loan can be repaid in less time. 

  • Make a Financial Budget

Prepare a budget and list down all your expenses, debts, and standard commitment and expenses on one side with your income from all sources on the other. Do a judicious study to map your expenses with your income and keep enough savings in hand to pay for a minimum of 6 EMIs if you ever run short of money or have to manage without an active income source. Make sure you stick to that budget for effortless debt repayment.

Following the tips mentioned above can assist in making your repayment smoother without causing any financial stees to your budget.

Must Read: 5 Reasons to opt a Personal Loan for Home Renovation

Top 7 Reasons to Fund Your Expenses with an Unsecured Personal Loan

Personal Loans

Pune is a thriving city known as the IT hub of India. When it’s time to meet your planned or unplanned expenses, you require money to fund them without digging into your savings. This is where an unsecured personal loan comes to your support. 

Without any end-use restrictions, you may use an unsecured personal loan in Pune the way you like to fund your expenses. These are the top 7 reasons that make an unsecured personal loan worth it:

  • No Collateral Requirement: What makes these loans a favourite among Pune people is their unsecured nature. You may avail of them without any collateral, security, or guarantor.
  • Competitive Interest Rates: Personal loans have lower interest rates than credit cards and other loan options.
  • Online Application Process: Most NBFCs have websites and apps through which you can apply for an unsecured personal loan online without leaving your house.
  • Easy Eligibility Criteria: When you conduct a personal loan eligibility check, you will find that the eligibility conditions are pretty simple, which include your age, income, and employment.
  • Minimal Documentation: NBFCs require minimal documentation, including your address, identity, and income proof.
  • 100% Paperless Loan Procedure: You may upload scanned copies of your documents to avail of a personal loan in Pune. Therefore, the procedure is 100% paperless.
  • Flexible Repayment: NBFCs offer flexible repayment terms that you may choose according to your monthly budget. 

Before applying for a personal loan, conduct a personal loan eligibility check and compare the lender’s terms and conditions to make an informed decision. If you are confident about repayment, applying for a personal loan makes sense.

Additional Read: What Is A Better Way To Apply For Loan, Online Or In-person?

Affordable Personal Loans: Easy Way to Manage Your Unplanned Expenses

Whenever you need urgent money to cover an unplanned expense, an affordable personal loan seems to be the best possible option. It is an unsecured loan that NBFCs quickly approve without much ado. They have easy eligibility conditions and minimal documentation requirements that anyone can readily fulfil. 

Borrowers can complete the online personal loan application procedure without leaving their house and get their loan amount disbursed into their bank account within minutes. These are a few features that make personal loans better than other loan options available out there:

  • Ample Loan Amount: Depending on your requirement, you may apply for a generous loan amount sufficient to cover your unplanned expenses.
  • Competitive Interest Rates: Personal loan rates are reasonable compared to other unsecured loan types.
  • No Collateral Requirement: Personal loans are unsecured loans that do not need any collateral, security, or guarantor for approval. 
  • No End-Use Restrictions: Whether you require money for a medical emergency, vacation, wedding, home renovation, or education, you can use the approved loan amount the way you want.
  • Flexible Repayment: Ranging from a few months to a few years, lenders allow borrowers to choose a repayment term according to their repayment capacity.
  • Easy Eligibility Conditions: Easy eligibility conditions make personal loans readily available to all.
  • Minimal Documentation Requirements: You just need to provide your identity, address, and income proofs during the online personal loan application process.

Do your research and find a lender with the lowest personal loan rates and favourable terms and conditions. Get your loan within minutes and cover your unplanned expense without worrying about money.

Must Read: How to Get a Personal Loan for Your Dream Vacation?

4 Smart Ways to Manage Your Loan Even Better

Prioritising your debts will help you manage them quickly. You can easily navigate the process with good planning in place and a few tips to better plan your loan repayment strategies. 

Smart Ways to Manage Your Personal Loan Even Better

  1. Keep Track of Your Credit Score

To get a personal loan in India, your credit score is an important number. It ensures that your finances and your credibility are healthy. Making timely loan payments will help you save on late payment penalties and maintain a good credit score. Set reminders or have an automatic debit system in place to not miss out on EMI payments.

  1. Allot a Budget

Allotting a budget to accommodate your personal loan EMIs will help you plan your commitments efficiently. Make time to chart out a budget along with tax benefits to understand your obligations and your budget. Using a personal loan EMI calculator to select your EMI according to your budget will help you reduce financial stress. 

  1. Debt Consolidation 

Having multiple debts is confusing. It makes you not only pay higher interests but also you end up missing payments. Debt consolidation will help you pay off multiple debts with a single EMI making it easy and simple to manage.

  1. Increase EMIs

Increase your EMI with every salary hike or an increment. This planning will help you repay loans faster and bring down interest rates. Foreclose your loan when finances improve. Even though you will have to pay a penalty charge, you can calculate your saved interest and compare your savings to understand if pre-closing will save your money.

Managing finances is essential for you to save money and invest smartly. It is not possible to achieve your goals without financial discipline. 

Must Read: 5 Costly Mistakes to Avoid Before Applying for a Personal Loan

5 Ways of Increasing the Possibility of an Approved Personal Loan

A personal loan is one of the most popular unsecured loans due to ease of borrowing and relatively low-interest rates. It can be used to cover personal expenditures such as emergency hospitalization, home expenses, etc. 

Even with a low salary, a personal loan can be availed using certain precautions beforehand. Here are five ways you can increase the chances of your personal loan getting approved.

  • CIBIL Score

Before taking a loan, it is important to check your CIBIL score since financial institutions usually base their decision to approve a loan on this. Therefore, a score lower than the minimum threshold may decrease the chances of you getting a loan.

  • Income

If you are wondering how much loan I can get, it is based on multiple factors such as your income, CIBIL scores, and general ability to repay a loan. However, to get your loan approved, it is beneficial to have a steady income. Therefore, employment status and income status are important for financial institutions to check your ability to repay the loan.

  • Joint Personal Loan

If you fall short on the eligibility criteria to avail of a loan, it may be very helpful to have a co-applicant. If you can split your loan burden with a co-applicant, perhaps with someone with a better income profile, the credit risk is reduced, and the financial institution may have a higher tendency to approve your loan.

  • Income-to-debt ratio

If you have a low salary, a personal loan can still be availed, but your income-to-debt ratio may have a role to play in this. The Income-to-debt ratio is your monthly debt divided by gross monthly income. For higher chances of your loan getting approved, less than 40% of your income should be used for EMIs.

  • Multiple applications

So, how much loan can I get?

No matter how worried you are about that, do not apply for the same loan with different lenders. This might reflect poorly on your financial condition and credibility.

Despite the ease of availing of a personal loan, it is ideal for keeping these pointers in mind to ensure success in terms of loan approval.

Must Read: 5 Factors that Affect Your Personal Loan Interest Rates

Things to Check Before Availing a Personal Loan

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Quick personal loans are loans wherein the financial institution allows you to withdraw the requested loan amount immediately. It can have multiple benefits, but you should keep the type of loan and its associated rate of interest in mind before applying for one. You can apply for personal loan here: https://www.fullertonindia.com/personal-loan.aspx

Tenure

Another thing to keep in mind while thinking about taking a quick personal loan is tenure. Loans can have a fixed tenure or a variable tenure. If you have a longer tenure, that means you have to pay less money per month. However, you end up paying a lot more interest in all this way. If you have a shorter tenure, that amounts to higher monthly payments. This is true for the same loan amount.

Floating interest 

Opting for this option means that the interest rate will keep on changing throughout the loan. This change has a direct cause-and-effect relationship with the market and the index. If planning to take a loan wherein the interest rate is already a lot, you should consider floating interest. There are good chances of the interest rate going down in such a situation. 

Fixed interest

As the name suggests, in these kinds of loans, your interest rate remains fixed for the duration of the loan. This helps one to plan their finances better since they know and anticipate the loan price for its duration. 

Consider all the factors at play here before making a decision: your monthly income, your monthly expenses, the interest rates, any assets you own, and others. Using a personal loan interest calculator makes this process easier. 

Additional Read: 2 Scenarios When Instant Personal Loans Better Than Credit Card

When Medical Insurance Fails: Take a Personal Loan

A personal loan always comes in handy in medical emergencies. When your medical insurance is inadequate to cover the cost of hospitalization of either yourself or a loved one, fill out an online personal loan application. Here are a few reasons why it may be beneficial: 

Instant funding

Online lenders often disburse personal loans within a minute of request. The terms and conditions might differ from NBFC (Non-Banking Financial Companies) to NBFC, but you generally get the loan very soon after requesting it. 

Repayment in EMIs

Instead of taking money out from your FDs and savings, take a loan that you can pay off of your salary over the next six to twelve months. This reduces the stress of instant repayment and allows you to spend extra hassle-free time with the people you love. However, be careful about the personal loan interest rates – having an extremely high one might make it difficult to return the money in a timely fashion and an unnecessary cost to you. 

Good quality medical care 

Taking a personal loan ensures that you’re able to provide the best medical facilities to those affected. Good medical care can be the difference between life and death. Thus you must get consultations/operations from the best doctors. 

As you can see above, taking a personal loan in such a dire situation can end up having multiple benefits. 

Must Read: Get a Personal Loans For Your Perfect Holiday

3 Benefits of Personal Loans

Personal loans are a form of quick loan which can be used for any purpose such as paying for weddings, holidays or starting a business. Here are some benefits of applying for a personal loan: 

Rapid disbursal / Quick disbursal of funds

A lot of online vendors disburse loans within 24 hours of receiving a request. This rapid disbursal is ideal if you have an urgent need for funds, or if you’re facing an emergency. 

Must Read: What Are Short Term Personal Loans?

No collateral required 

Since personal loans are mostly unsecured, you do not need to pledge any of your assets. This helps in making personal loans accessible to everyone. 

Fewer documents needed / Hassle-free Documentation 

Applying for a personal loan online is a wholly paperless process – all documentation happens online. Here are the documents you may need, depending upon the financial institution you are applying from: 

  • Loan application: To provide details on the loan, such as the amount required and the purpose of the loan, amongst others.  
  • Identity proof: Any proof of identity that has been provided to you by the government.
  • Proof of address: This might overlap with identity proof, and it includes proof of home or the lease agreement. 
  • Employment proof: If you’re employed, lenders need this to verify your payback abilities.
  • Income tax returns. 

Using a personal loan calculator may be of assistance. It helps you estimate the sum of money you will need to pay in each EMI installation, which will no doubt help in planning your finances better.

Advantages of Using an EMI Calculator for Personal Loan

Financial services have become so accessible, that personal loan is now available for everyone with just a click. However, it is important to make this decision by proper calculations and speculations to make the right decision. 

For this, a personal loan EMI calculator will help you. 

Personal Loan EMI calculator

An acronym for Equated Monthly Instalment, EMI consist of the repayment of the principal amount, and the interest payment on the personal loan. It is a tool that helps applicants evaluate the monthly repayable amount for their personal loan. 

Advantages of EMI calculator 

The mathematical formula to calculate EMI is: EMI = P × r × (1 + r)n/((1 + r)n – 1)

where P= Loan amount, r= interest rate, n=tenure in number of months.

The various advantages of a personal loan EMI calculator are:

  1. Budget Planning: Based on your monthly expenses and earnings, you will be able to calculate your repayment capacity. The EMI calculator will help you in planning your budget, by giving an idea about how much you have to repay each month.
  2. Helps you experiment with the factors that affect your EMI: If your monthly savings are not matching up with the monthly repayment, then you can experiment with the loan tenure, loan amount and interest rate to find the perfect fit.
  3. Saves time: Instead of wasting time planning and calculating your finances, a personal loan EMI calculator saves you time and gives you an estimate of your expenses.

Conclusion

With the help of an EMI calculator, you can assess your eligibility to avail of a quick personal loan, the repayment capabilities, and ensures your financial wellbeing.

Must Read: 5 Reasons why you should Avail a Personal Loan Online

How Personal Loan can Help you Steer Through a Wedding?

Have you ever considered taking a personal loan for something as pressing as a marriage? If not, you can always rely on credible financial institutions, preferably NBFCs, for getting hold of instant personal loans. However, even though it is possible to get a fresh credit line for arranging a wedding and the aligned activities, you need to be aware of the best strategies to procure one sans hassles and excessive documentation.

How can Personal Loan be effectively used for planning a Wedding?

Contrary to popular opinion, a marriage loan is a form of credit where you apply for a personal loan and declare a marriage or wedding arrangement as the reason for getting one. However, if you are really interested to leverage a persona line of credit for marriage, here are the best options to consider:

Enlist Expenses

Before you can even apply for a personal loan to arrange a wedding, it is necessary to enlist every big and small expense and zero in on the amount accordingly. 

Apply Online

A good way to minimize hassles and the waiting period is to apply for an online personal loan, once you are aware of the loan amount.

Choose Repayment Options with Care

Another approach to maximize flexibility is to get hold of a personal loan EMI calculator. This way you become aware of the liabilities and can plan the repayment timeline, accordingly.

Besides, as it is still a personal loan, you need to pre-check the credit score and keep the documents ready to sail through the process, sans complications.

Must Read: What Can a Personal Loan Be Used For and How Can It Help?

Why Instant Personal Loan Is A Great Choice For You?

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Personal loans are one of the best financial instruments which you can utilize to upgrade your lifestyle. If utilized judiciously, personal loans incorporate a financial discipline in your life which allows you to achieve your financial goals in a systemic manner. Financial institutions, like Fullerton India, provide great schemes for personal loans at attractive interest rates.

You can check for the best schemes using a personal loan EMI calculator online. The following are some of the reasons why taking a personal loan is a great choice for you.

Reasons to Take Personal Loan:

  • No Collateral

A personal loan does not require you to keep collateral against your loan amount. Hence, you can easily take a loan without putting your personal asset on the line.

  • Digital Convenience

The digital transformation of financial systems has made taking a personal loan an extremely convenient exercise. The entire process gets completed on your laptop or smartphone while sitting in the comfort of your home. One can install personal loan app on their handset and apply for loan easily.

  • Affordable Rate of Interest

Personal loans have a very affordable rate of interest. You can check for different rates of interest being offered by financial institutions using a personal loan EMI calculator.

  • Minimal documentation

Bare minimum documentation is required to apply for an instant personal loan. The documentation includes identity proof, address proof, PAN card and income proof. All these documents can be uploaded from your laptop or your smartphone.

Hence, taking a personal is not only convenient but is also very affordable. Right from covering for your short-term financial needs to buying the next costly gadget, you can apply for a personal loan to reach any of these financial milestones of your life.

Must Read: 5 Types of Personal Loans That you Can consider

Different Ways to Calculate Your Personal Loan EMI

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A personal loan is often obtained in case of emergencies or when one is in urgent need of funds. The onset of COVID-19 has compounded such a need for many people in the country. However, before obtaining such a personal loan, it is wise to be aware of the total payment to be made over the tenure of the loan.

Such information can be calculated using the EMI which is to be paid monthly to the financial institution. The EMI along with the schedule of payment is given with each loan however, the borrower must be aware of how EMI is calculated. This will ensure that a borrower makes an informed decision.

Manual calculation of EMI

One can either set up or use a personal loan EMI calculator using an application such as Microsoft Excel. Or use one of the myriad calculators which are available online.

Firstly, let us understand how an EMI is calculated. The formula for calculation of EMI is dependent on three main factors i.e. the amount of loan taken, rate of interest as well as time to repayment. Such formula is as follows:

EMI = [P * R * (1+R)^N] / [(1+R)^N-1      

Where P = Principal

R = Rate of Interest

N = time period

Calculation in Excel:

Apart from such manual calculations, EMI can also be calculated using the financial function in excel which can provide the data instantly.

Online Calculators:

EMI can also be calculated using online calculators wherein the user has to merely enter the details regarding the loans to calculate the EMI. The user can also know different EMI by changing tenor of loan, interest rate or principle to suit their need,,

An understanding of how EMI is calculated and basic knowledge of its computation enables one to become better informed and avoid being taken for a ride. With several personal loans being sold online, a personal loan EMI calculator turns out to be a handy decision making tool.

Must Read: 5 Tips to Acquire Attractive Deals on Your Personal Loan Interest Rate

FAQs:

What personal loan lenders accept referrals for money?

Will a personal loan build more credit?

Here’s How You Can Manage Personal Loan Repayments?

personal-loans

At times, we have to take a personal loan to fulfil our capital needs. The popularity of personal loans comes from its easy accessibility due to its unsecured nature. You can avail it for a wide variety of financial requirements, and in most cases, there are no restrictions on the utilisation of money sanctioned against a personal loan. 

Today, you can fulfil your dreams quickly by availing a loan, but at the same time, it is essential to ensure that you are financially capable of handling it with your current lifestyle. Here are a few tips that will help you manage personal loan repayments.

  •    Planning a budget:

Before applying, make sure to work out on a budget. Use a personal loan calculator to know the monthly liabilities that you have to repay through EMIs. Make sure you will have enough cash flow to repay on time. 

  •    Plan your expenditure:

Have a clear idea about the expenses you need to cover through the loan amount or the investments you have to make through it before it reaches your bank account. Not having a plan can result in unwanted expenditure.

  •    Opt for prepayments:

Check out the terms of the loan before applying, and if possible, choose the one that allows prepayments. It will enable you to clear the debt before time and save a decent amount of money.

Conclusion:

A personal loan is attractive to people due to reduced paperwork and fast access to credit. However, it can hamper your budget if not managed properly. Make sure to use a personal loan calculator to understand your financial liabilities before applying for a loan.

Additional Read: How Can i pay my dental emergencies bill with personal loan?

Top Reasons Why You Should Apply for a Personal Loan

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The best part of taking a personal loan is that you can use the loan amount for any reason. While applying for a personal loan, one does not have to explicitly mention to the lender the cause of seeking the loan. Whether planned or unplanned, you may apply for a personal loan for the following reasons. 

Reasons to Apply for a Instant Personal Loan:

  • Debt consolidation: Imaging having taken multiple loans and having to pay off each of them every month. Then, there may be regular piling of credit card bills, thus, leaving you stressed under recurring financial debt. To get rid of the liability of paying off numerous bills, you may consider taking a personal loan to the tune of total financial debt incurred and then repaying all of them at one go. This will leave you with a single loan that you would be required to repay along with interest within the given loan tenure.
  • Ease of application: “For personal loans, apply here” are common advertisements that we frequently come across on the web. Credited by lenders for their customers’ use, most personal loans are unsecured loans and do not require borrowers to offer collateral as security or a guarantor to avail the loan. You may apply for a personal loan by either going to the lenders’ websites or approach the nearest branch with a loan application form. 
  • A better alternative than payday loans: Though personal loans come at high-interest rates, it is still better to avail them than opt for instant payday loans that charge one per cent interest for each day throughout the entire loan tenure. When annualized, the yearly interest rate on payday loans is a whopping 365 per cent per annum. Payday loans are easy to get but involve hefty penalty charges in case of default on payment during the loan period. However, most lending institutions do not charge extra in case of personal loan default or foreclosure. To gauge the estimated returns on a personal loan, you may use the personal loan interest rate calculator available online.
  • Paying for emergency expenses: Medical treatment is getting costlier, thus, mandating the need for personal loans. Not all people buy health insurance to cover the expenses on their medical treatment. Paying off medical bills is one of the reasons to opt for a personal loan. These medical expenses may include spending on surgeries, in addition, to pay for medications and availing aftercare facility, when required.
  • Making added investment to business: The penchant of giving shape to a business idea is common with millennials. However, any business idea, big or small, necessitates some basic investment. While business loans are available, the remaining capital requirement can be supplemented with a personal loan from your choice of lender.
  • Dream vacation: Planning a dream vacation with your loved one? Lack of funds may prove to be a hurdle. You may choose to either wait till you have saved enough or apply for a personal loan. If the need for a break is imminent, the loan amount credited to your account can help. However, it is important to estimate the amount of loan that you would require so that you do not borrow more than you require. 
  • Destination wedding: Indian weddings are synonymous with grandeur and a lot of celebration. If you have opted for a traditional wedding ceremony, get ready to participate in multiple ceremonies. Functions and observing ceremonies can be expensive. Just because a wedding is an expensive affair, it does not mean that you would postpone it for an infinite period. Statistics shared in the past reveal how a major percentage of personal loans was taken to meet marriage-related expenditure. 
  • Home remodelling: You may feel the need to refurbish your old home. Whether you are looking to replace that old roof, install solar panels or construct a new wall, remodel your kitchen or lend a whole new look to your garden area, taking a personal loan can help. Seeking loans from banks for house remodelling is a perfect solution in case you do not have the necessary cash in hand. Assess the estimated costs that would be incurred, decide the amount of loan required and use the personal loan interest rate calculator to gauge the amount of interest that would be charged.
  • Buying hi-end gadgets: You may not want to be boxed within the idea of living a moderate lifestyle. The urge to buy a new motorcycle or spend on a costly entertainment centre or gaming computers can be easily satiated with the amount received from a personal loan. Personal loans lend you the advantage to make an immediate purchase instead of having to save for months to make the purchase. Though you may have to repay the loan amount along with interest, it saves you from the pain of having to wait before buying your favourite item.

Additional Read:  Things to Check Before Availing a Personal Loan Online

What is Personal Loan EMI Calculator & How to Use it?

Whenever you apply for a loan from any financial institution you have to pay the loan in the form of EMI ( Equated Monthly Installment) which may be a monthly or yearly basis. It is a monthly installment amount that you have to pay until your loan is repaid fully. Personal Loan EMI Calculator is a tool used to calculate the EMI amount of the loan.
loan-calculator

Before applying for a personal loan you should know how much EMI amount you will have to pay for the loan. There are 2 methods by which you can calculate EMI:-

1. By manually with mathematical formula- EMI is calculated through these factors- Principal Amount, tenure and rate of interest. The mathematical formula used for this calculation is:
                 EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
here,
P is the stands for the principal amount,
R is for the applicable rate of interest, and
N is for the loan duration.

2. Personal Loan EMI calculator- You can calculate EMI by using a Personal Loan calculator, an online tool to calculate the EMI amount. Use of online calculators fewer chances of errors. It is fast and it is easy to use. It saves your time and gives an accurate result. The tool is available on the lenders’ official website. You only need to fill the details of the principal amount ( loan amount), Interest Rate, Tenure and submit it. It will show your EMI amount.

Additional Read: How Is Personal Loan EMI Calculated in India?

Use Personal Loan Calculator to Calculate Your EMI

While home loans and car loans are to be used for specific purposes, personal loans can be used for any reason. The choice is up to the borrower. It could be a wedding ,a vacation, home renovation, etc. In addition, getting a Personal Loan issued is hassle-free and quick. The Personal Loan, like all other loans, are repaid back using EMI. Equated monthly instalments depend on three key factors (i.e.) Principal, Interest Rate and Tenure. The principal is the amount of money required to be borrowed. Rate of interest is charged annually. Hence it is to advice to calculate the EMI with personal loan calculator an online tool to calculate the monthly EMI.

personal-loan-emi-calculator

Tenure is the duration for which the EMI is to be paid in order to repay the loan. Understanding these three factors helps increase awareness among borrowers. They can calculate persona loan EMI in advance and determine the amount to borrow so that they can plan their finances accordingly.

Personal loan calculator are convenient and easy tool to calculate the payble EMI. It requires the following details:

1. Loan Amount
2. Loan Tenure
3. Interest Rate

Must Read: How Is Personal Loan EMI Calculated in India?

What is Personal Loan Calculator & How is Interest Calculated?

When you apply for a personal loan, the monthly instalment amount that you will be paying becomes a key factor in deciding the loan amount and tenure. You can either use a personal loan EMI calculator or the below formula to calculate your pay-outs. This helps you in planning the loan amount and repayment schedule better.
Ideally, the interest rate on a personal loan is calculated by considering several factors. Your credit history, monthly income, the amount being borrowed are a few among them.

emi calcularor

Factors Affecting the Personal Loan EMI

The following are the factors that affect your loan EMI.

  • Loan Amount:  The higher the loan amount, the higher the EMI payable. The maximum loan amount you can avail is decided by the lender based on your repayment capacity, relationship with the bank, and other factors.
  • Rate of Interest: The rate of interest is also directly proportional to your EMI. Your loan’s interest rate is based on several factors, such as your income, your credit history, repayment capacity, etc.
  • Loan Tenure: The loan tenure is inversely proportional to your EMI. The longer the tenure, the lower the EMI.

Calculating the Personal Loan EMI

Have a look at the below method that explains how you can calculate the interest amount on the total loan amount.

The interest amount is not the same for each month. The interest amount is higher at the beginning, which reduces gradually in the following months.

Calculate Interest for the First Month

  1. Convert your annual interest rate into a monthly interest rate. To do this, you will need to divide the annual interest rate by 12, i.e. if the interest rate is 20% per annum, then divide 20/12, which yields 1.66%. This is your monthly interest rate.
  2. Multiply the interest rate with the total personal loan amount, i.e. if you are taking a personal loan for 30000 at a monthly interest rate of 1.66%, then [(1.66/100)*30000 = 498] is the interest amount for the first month.
  3. Calculate the total

Calculate Interest for the Following Months

Since, you have started to pay off your principal, use the below calculation to find out the interest amount for the following months. 

  1. Subtract the interest amount of the first month from the amount you repaid. This gives you the amount that you have paid against the total personal loan principal.
  2. Now, subtract this amount from the original principal to find the new balance of your loan.

          New balance = principal – (EMI – interest) 

Additional Read: How We Can Get Instant Personal Loan Online?