Personal Loans are accessible, easy to use, and help borrowers get affordable rates as well as flexible tenures with no collateral. But how do you know whether the loan is within your repayment capabilities?
For that, a Personal Loan interest rate calculator is there for you. Continue reading to know more about this online calculator.
What is an EMI Calculator?
EMI Calculator is a simple tool that automatically generates the EMI amount that you’ll have to pay per month against your loan repayment process.
When Do I Use an EMI Calculator?
You can use the calculator while considering getting a Personal Loan. However, before calculating the EMI and interest rates, there are some requirements for you as a borrower that you need to fulfil, such as:
- The principal loan amount borrowed (in ₹)
- The rate of interest (in percentage)
- The loan tenure (in months/ years)
How is the EMI Calculated in an EMI Calculator?
If you want an instant Personal Loan in India, using a Personal Loan interest rate calculator is a wise choice to get the best loan that is affordable for you. Here’s the formula the calculator uses to generate your EMI:
- EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
- P denotes the principal loan amount
- R denotes the rate of interest calculated monthly. For instance, if the Rate of Annual interest is 11% per annum, then r = 11/12/100=0.009166)
- N denotes the loan term in months
Features of EMI Calculator
Upon calculating the EMI, you will find the calculator displaying two structures. First, the EMI chart shows the Loan Amount, Interest Rate, Loan Tenure, Total Monthly EMI amount, and the total number of EMIs. This gives you a better understanding to map your loan journey.
The other is the EMI schedule table, which helps you plan other expenses with the loan. It displays details like:
- Monthly repayments for the entire loan tenure
- The principal amount for a month
- Interest paid for a month
- Total interest paid up to a month
- Remaining amount
Benefits of Personal Loan Interest Rate Calculators
There are significant advantages to using a Personal Loan interest rate calculator. We’ve handpicked a few:
- Error-free calculations
- Hassle-free experience and no time consumption
- Helps you have a mapped financial journey to make informed decisions
- Gives you prior EMI knowledge
- Helps find the perfect loan tenure to complete your loan journey
- Give insights to compare interest rates and other offers in a loan from multiple banks
- Aids you in avoiding a financial pitfall during repayment
Factors Affecting Personal Loan EMIs
There are some important factors that affect EMI calculations, especially for an instant Personal Loan in India. Some may even include your credit scores. So, here are some dependent criteria that can affect Personal Loan EMIs:
- Repayment records
- Income proof
- Investment statements
- Employment (Nature & location)
- Debt-to-income ratio
- Self and Co-applicant’s Qualifications (if any)
- The total number of dependents
- Co-applicant’s income (wife/mother/father, etc.)
- Assets, Liabilities, and Stability
How to Choose the Suitable EMI amount yourself?
If you’re confused about how to estimate the EMI into your budget, try out these tips:
- Know your monthly revenue (savings and expenditures) to choose an appropriate EMI amount, principal amount, interest rates, and tenure.
- Decide how much you will borrow as it decides the loan tenure.
- Use possible term loans to lower the tenure and align it with your budget.
- Remember to keep track of increments or increases in your next salary to increase EMI and limit the loan tenure.
- Above all, use the Personal Loan interest rate calculator to choose the correct loan type with its accurate results on the total interest, income, and full payment (interest + principal) due during the loan term.
You can always benefit from using the Poonawalla Personal Loan interest rate calculator to get a hassle-free loan experience and turn your dreams into reality!