Personal Loan EMI Calculator

BankBazaar personal loan EMI Calculator is extremely easy to use and user-friendly. Put your preferred loan amount, interest rate, processing fee and tenure into the form. Click Calculate to see your estimated monthly payment. You can also view the details of your payment plan through an amortization chart.

The monthly payment for your personal loan depends on various factors, such as the loan amount, interest rates, and tenure. Calculate your monthly instalments beforehand so that you can budget your finances in a better manner.

Benefits of using a Personal Loan EMI Calculator

Here’s some of the benefits of using a personal loan EMI calculator.

1. Compare loans: Enter a fixed loan amount and tenure and vary the interest rate and processing fee depending on the rates fixed by the concerned bank. That’ll give you a holistic idea regarding total cost of your loan and based on that you can choose your personal loan product.
2. Saves time: Calculating EMI takes less than a minute when you are using a calculator. Also, EMI calculators are extremely easy-to-use and 100% accurate.
3. Choose your preferred loan tenure: Vary loan tenures and compare your EMI to see which one is better suited for your financial health. If you are okay with paying higher EMI and would like to close your loan early, go for a shorter tenure. Otherwise you can always opt for a longer tenure.
4. Check your repayment schedule: BankBazaar’s personal loan EMI calculator also gives you a complete break-up of your repayment schedule. That way you will get an idea how much you’ll have to pay as interest and how much will be your principal outstanding.
5. Verify EMI information: You can validate your repayment schedule as offered by the bank by using an EMI calculator. Other than that, with a calculator you can also calculate the processing fee that you have to pay upfront (usually deducted from the sanctioned amount).

Features of Personal Loan EMI Calculator

1. Graphical Representation: Learn how much will be the principal amount and interest will be paid in each EMI. This information will be presented to you in the form of a pie chart.
2. Repayment Table: The repayment table, illustrates details with regard to your loan repayment. It helps you understand how much you will have to shell out each month so that you can plan the rest of your expenditures accordingly.

EMI Calculation Results Explained

1. EMI: Your monthly EMI which you have to pay to the lender to pay off your personal loan. Based on your loan EMI output you can check your personal loan eligibility in real time at BankBazaar.com.
2. Break-up of your total amount payable: The EMI Calculator tool gives you the total personal loan amount payable to the lender. Your total loan amount payable is the sum of your loan amount (Principal), interest payable and processing fees. You can view this in the form of an amortization table that’s designed to give you a holistic view of your monthly/yearly repayment obligations.

Example:

Suppose Mr. X takes out a loan of Rs.15 lakh for a term of 5 years at an annual interest rate of 12%. To calculate the EMI, he would apply the above formula. While the calculation is somewhat complex, an online EMI calculator can provide the answer quickly.

In this case, Mr. X's monthly EMI would be Rs.33,367.

What Factors Can Affect Your Personal Loan EMI?

1. 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.
2. Rate of Interest: In this case, too, the rate of interest is directly proportional to the EMI. The higher the rate of interest, the higher the EMI. The bank will determine your loan’s interest rate based on a number of factors such as your Income, your credit history, repayment capacity, etc.
3. Loan Tenure: The loan tenure you choose is inversely proportional to the EMI. The longer the tenure, the lower the EMI. However, with longer tenure you may end up paying more as interest. The loan tenure options usually range between 12 months and 84 months.

Understanding Monthly Interest Rates for Personal Loan EMI

When you approach a financial institution in order to take a personal loan, the main piece of information you are looking for is the interest rate that is being offered.

Once you know it, and before you start using it to calculate the EMI, you need to convert the rate into a monthly one since the interest rate is always presented as an annual rate. To do so, the following formula is used.

Monthly Interest Rate = Interest Rate/12

For Example, if the interest rate offered to you for your personal loan is 18% p.a., then your monthly interest rate will be calculated as follow:18/12 = 1.5

This means that the monthly rate of interest will be 1.5%.

How Personal Loan Restructuring Impacts EMI

In a new directive announced by the Reserve Bank of India (RBI), it was announced that banks can help restructure the personal loans of those borrowers who are finding difficult to repay the EMI on time due to the financial crunch caused by Covid19.

The bank can restructure the personal loan by lowering the rate of interest, rescheduling the payment of EMI, or allow the individual to avail a limited loan repayment holiday.

The restructuring window will be available till 31st December 2020. This will help the borrower gain more time to repay their loan. The loan account will not be deemed as a non-performing asset (NPA) and the credit score of the borrower will not have any negative impact.

However, borrowers who have been paying their EMIs regularly and were not overdue by more than 30 days as of 1st March, 2020 are eligible to avail the personal loan restructuring facility.