Using a personal loan EMI calculator would be very helpful if you want to calculate EMIs on your unsecured loan. With its help, one can easily know about his/her monthly EMIs as per the loan tenure. To use the calculator, you need to enter details like the loan amount you want to avail, the rate of interest, and the loan tenure. The best part about using this online financial tool is that borrowers can instantly check the EMI outflow and decide whether they can afford the loan or not without affecting their other monthly obligations. Have a look at the process of calculating EMIs using the EMI calculator and what are the factors that affect Personal Loan EMI?
The process to calculate EMIs with a Personal Loan EMI Calculator
The borrowers can calculate EMIs on personal loans in two ways i.e. using an online calculator or by using a mathematical formula as per your convenience.
Online EMI Calculator: To use an online Personal Loan Calculator, you need to enter the loan amount, loan tenure, and the rate of interest to know the EMI outflow.
Offline EMI Calculator: You can also calculate the EMIs on your loan by using an offline mathematical formula. The offline formula to calculate EMI is- EMI = [P x R x (1+R) ^N]/ [(1+R) ^N-1], where E is EMI, P is the Principal Loan Amount, R is the rate of interest per month, if the interest rate is per annum, then the rate of interest will be – interest / (12 x 100)] and N is the loan tenure or the duration to repay the loan in months.
Factors affecting Personal Loan EMI
These are the factors that affect your personal loan EMIs.
Principal Amount– This is the amount that the borrower decides to take from the bank in the form of a loan. This amount directly affects your EMIs. Remember, the higher the loan amount, the higher will be the EMI.
Rate of interest– This is the rate at which the lender offers the loan. Lower the personal loan interest rate, lower the EMI.
Loan Tenure– The tenure period is the time within which you have to repay the loan. The longer the loan tenure, the lower will be the EMI. The shorter the loan tenure, the higher will be your EMI.
Advantages of Using a Personal Loan EMI Calculator
Online Personal Loan EMI Calculator helps you to calculate loan EMIs in a matter of seconds and has multiple benefits, which are listed below-
Saves your time from doing tedious calculations: EMI Calculator helps the borrower to save time in doing tedious calculations by calculating EMIs in seconds. You will get the output immediately the moment you enter the details.
Gives quick and accurate results: Using an online calculator will give you quick and accurate results as wrong calculations may lead to wrong results which can change your EMI for a personal loan and make you change your decision while taking a loan.
Plan your finances: Personal loan EMI calculator tells you about your EMI which is to be paid during the loan tenure and lets you know whether you will be able to pay back the loan amount or not. Always go for the amount which is according to your budget so that you can pay your loan EMIs easily.
It is important to calculate your EMIs in advance to maintain stability in future payments. When you avail of a loan, you promise the bank to pay a fixed amount at a fixed date every month. Before you get the loan, you should consider the stability of your income, monthly expenses, and the existing loan obligations to avoid any discrepancies in future payments. You can do this easily by making use of the best personal loan EMI calculators available online.