personal loan emi calculator online

Why Instant Personal Loan Is A Great Choice For You?

0_vER7uDd94lvrayNz

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

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?

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?