EMI
Principal Amount
₹ 0
Interest
₹ 0
Payable Amount
₹ 0
Personal loan is a type of loan that you can avail for various personal purposes, such as travel, wedding, medical emergency, home renovation, debt consolidation, etc. Unlike other loans, a personal loan does not require any collateral or security and has minimal documentation and processing time. However, a personal loan also comes with a higher interest rate and a fixed repayment schedule that you need to follow.
Most important aspects of taking a personal loan is to plan your loan repayment in advance. This will help you avoid any financial stress and manage your monthly budget better. To plan your loan repayment, you need to know your EMI amount, which is the fixed monthly payment that you need to pay to your lender until your personal loan is fully repaid.
But how do you calculate your EMI amount for a personal loan? And how do you compare different personal loan options and choose the one that suits your needs and affordability? This is where personal load EMI calculator comes handy
A personal loan EMI calculator is a tool that helps you calculate your EMI amount for any personal loan, such as a travel loan, wedding loan, medical loan, etc. It also helps you compare different personal loan options and plan your monthly budget accordingly. A personal loan EMI calculator can also show you the break-up of total payment into principal and interest components.
- The personal Loan EMI calculator uses a simple formula to calculate the EMI.
- EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
- where,
- P = Principal amount
- R = Interest rate per month (divide the annual interest rate by 12)
- N = Number of monthly instalments or loan tenure in months
- For example, if Anjali takes a personal loan of ₹100000 from a bank at an interest of 12% per annum for 5 years. Here is how the EMI would be calculated.
- P = ₹100000
- R = (12/12)/100 = 0.01
- N = 5*12 = 60
- Therefore,
- EMI = [100000x0.01x(1+0.01^60]/[(1+0.01)^60-1]
- EMI = 22244.44768 / Month
- To use Angel One EMI calculator, you need to enter the following inputs:
- Loan amount:Amount of money that you want to borrow or have already borrowed from the lender.
- Interest rate:Interest rate charged by the lender/financial institute for the loan.
- Loan tenure: The duration of the loan in months or years.
FAQs
You can reduce your Personal Loan EMI amount by:
- Choosing a longer loan tenure: This will reduce your monthly instalment but increase your total interest payable.
- Choosing a lower interest rate: This will reduce both your monthly instalment and your total interest payable. You can negotiate with your lender or switch to another lender who is offering lower interest rate.
- Making a higher down payment: This will reduce your principal amount and hence your monthly instalment and total interest payable.
- Income: Income determines your repayment capacity and hence your maximum EMI amount. Generally, lenders prefer that your EMI does not exceed 40% to 50% of your monthly income.
- Credit score: Credit score reflects your credit history and repayment behaviour. Higher credit score indicates lower risk of default, which increases your chances of getting a loan at a lower interest rate and higher EMI amount.
- Existing debts: Existing debts affect your debt-to-income ratio, which is the percentage of your income that goes towards paying off your debts. A lower debt-to-income ratio indicates a higher surplus income and hence increases your EMI eligibility.
