Simplifying your Loan experience: Using a Personal Loan EMI calculator

[Abhilash Rathore]

Manual computation of Personal Loan EMIs can be a stressful and time-consuming task. Juggling with complex formulas and adjusting variables manually can lead to errors and uncertainty. The risk of making mistakes in these calculations may result in incorrect financial planning, leading to potential budget challenges in the future.

Therefore, the Personal Loan EMI calculator is a user-friendly tool that empowers you to manage your finances effectively. You can instantly obtain accurate EMI values by simply entering your Loan amount, interest rate, and tenure. Whether it is funding your dream wedding, consolidating debts, or covering unexpected expenses, the calculator is here to assist you every step of the way. Know your Loan repayment journey even before applying for a Personal Loan.

How do you use it?

Understanding how to calculate EMIs is crucial to the Personal Loan application process. This calculator comes with three tabs that will instantly arrive at your EMI. Follow the steps below to determine yours:

1. Choose the Loan amount

Select the Loan amount you want to apply for. The PL Loan EMI calculator allows you to choose up to Rs. 30 lakh. It is the principal amount that you will be repaying over the tenure. It significantly influences the EMI calculation and the monthly payment amount, so enter it accurately.

2. Set the interest rate

Next, enter the annual interest rate applicable to your Loan in the EMI calculator. The interest rate determines how much interest you will pay over the Loan period and is one of the biggest factors that affect the EMI amount. Please note that while you can try different interest rates to see how they impact the EMI, the final interest rates lie at the sole discretion of the lender.

3. Select the tenure

Choose the duration over which you repay the borrowed amount. In the Personal Loan EMI calculator, you can choose a tenure of up to five years. It affects the EMI amount, with longer durations typically resulting in lower EMIs but increasing the total interest to be paid.

Factors affecting the EMI amount

Numerous factors are responsible for affecting the Loan EMI, such as:

• Loan amount: The principal Loan amount directly impacts your EMI. Higher Loan amounts result in higher EMIs. Make sure you choose a Loan amount that fits your repayment capacity.
• Interest rate: The higher the interest rate, the higher the EMIs, making the Loan more expensive over time. Securing a lower interest rate through good credit scores or negotiation can reduce your monthly payments and total interest paid.

• Loan tenure: Longer tenures spread the repayment over more months, reducing the EMI but increasing the total interest paid. Shorter tenures result in higher EMIs but lower overall interest costs. Choose a tenure that balances affordability with the total Loan cost.

With the help of this tool, you can determine the EMI amount and select the right Loan tenure. The calculator can also check how different factors impact Loan EMI.