What is the EMI on a ₹15 Lakh Personal Loan for 10 Years?

Knowing your Personal Loan EMI (Equated Monthly Instalment) before applying for it is important to plan your repayments wisely. The three main factors affecting the EMIs are the loan amount, interest rate, and tenure. You can prevent financial difficulty later on by calculating it beforehand and knowing exactly how much to set aside each month.

In this blog post, we’ll help you calculate a ₹15 Lakh Personal Loan EMI over 10 years, along with relevant examples and tips to reduce the EMI burden.

How is Personal Loan EMI Calculated?

The most common formula, which considers the loan amount, interest rate, and loan tenure, is used to calculate the Personal Loan EMI. The formula used to calculate Personal Loan EMIs is:

EMI=[P×R×(1+R)^N​]/ [(1+R)^N−1]

Here, 

P = Loan amount (Principal)

R = Monthly interest rate (Annual rate ÷ 12)

N = Loan tenure in months

This formula helps to determine the monthly EMI that remains the same throughout the loan tenure. The proportion of principal and interest payments keeps fluctuating. The first EMIs are more focused on interest payments, and the later EMIs are focused on repaying the principal amount.

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EMI Calculation for ₹15 Lakh Personal Loan Over 10 Years

Let's calculate the EMI amount for a ₹15 Lakh Personal Loan with a loan period of 10 years and an annual interest rate of 9.99%.

P = Loan amount = ₹15,00,000

R = Monthly interest rate (Annual rate ÷ 12) = 9.99% ÷ 12 ≈ 0.008325

N = Tenure in months = 10 × 12 = 120

• EMI = (15,00,000 × 0.008325 × 2.7179) ÷ (2.7179 − 1) ≈ ₹19,761
• Total Payment = 19,761 × 120 = ₹23,71,320
• Total Interest = 23,71,320 − 15,00,000 = ₹8,71,320

Here is a breakdown of the monthly EMI, total repayment, and total interest for a Personal Loan of ₹15 Lakh over ten years at various interest rates:

₹15 Lakh Personal Loan EMI Calculator

A Personal Loan EMI calculator allows instant EMI calculation without any manual effort. With the EMI calculator, you can easily know your monthly payments and understand the total loan repayment structure.

To use the EMI calculator, enter the loan amount, select the interest rate, and then select the loan tenure. Once you enter all the required details, the calculator will display the monthly EMI, the total amount owed during the loan term, and the total interest payable.

Benefits of Using an EMI Calculator

Here are some key benefits of using an EMI calculator for a Personal Loan:

1. Quick and Precise: Prevents computation errors that occur from manual calculation.
2. Flexible Planning: Allows for entering different interest rates and tenures to find a comfortable Personal Loan EMI.
3. Better Budgeting: Helps to know the monthly payments precisely for better financial planning.
4. Compare Offers: Compare EMIs from several lenders with ease.

Therefore, using an EMI calculator helps you save time and make informed borrowing decisions.

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Factors Affecting EMI Amount for a ₹15 Lakh Personal Loan

The EMI of a Personal Loan of ₹15 Lakh is influenced by a number of factors. Knowing these will enable you to select a loan that suits your budget and better plan your repayment:

1. Loan Amount (Principal): A higher loan amount will lead to a higher EMI. For a ₹15 Lakh loan, even a small increase in the principal amount can significantly increase your monthly payments.
2. Interest Rate: Your EMI is directly impacted by the lender's interest rate. A slight variation in interest rates might have a big impact on your monthly instalment.
3. Loan Tenure: There is an inverse relation between the loan tenure and EMI amount. A longer tenure reduces your EMI; however, it increases the total interest paid over time. On the other hand, a shorter tenure leads to increased EMI, reducing total interest paid.
4. Processing Fees and Charges: Your EMI can be slightly impacted by processing fees, administrative fees, or insurance expenses that some lenders impose.
5. Type of Interest Rate: If you opt for a fixed interest rate, your Personal Loan EMIs will remain constant. However, floating interest rates may change your monthly repayments based on market fluctuations.
6. Prepayments or Part-Payments: Making prepayments lowers your remaining principal amount, which helps reduce the loan term or future EMIs.

By considering all of these factors, borrowers can minimise the overall amount of interest paid while managing EMIs by selecting the ideal interest rate and tenure combination.

Tips to Effectively Calculate EMI for a ₹15 Lakh Personal Loan

Here are some practical tips to help you calculate the EMI for a ₹15 Lakh Personal Loan and improve your financial planning:

• Know the EMI Formula: Enter the correct principal loan amount, interest rate, and tenure to calculate your EMI accurately.
• Use an Online EMI Calculator: Get quick results for EMI, total loan repayment, and interest.
• Compare Interest Rates and Tenures: Even minimal differences can significantly affect your EMI.
• Include Additional Charges: For the accurate EMI, consider processing charges or administrative expenses.
• Consider Prepayments: Reducing the principal amount lowers future EMIs and shortens the loan tenure.

Also Read :- Avail 3 Lakh Personal Loan Instantly with Minimum Documentation

To Conclude

Calculating the EMI for a ₹15 Lakh Personal Loan is an important step before applying, as it helps you plan your finances and avoid repayment stress. Factors such as the principal loan amount, interest rate, tenure, processing fees, and the type of interest rate influence your EMIs. This procedure is made simpler by using an EMI calculator, which offers immediate results for interest payable, total payback, and monthly instalments.

You can choose an EMI that fits your budget and efficiently manage your finances by comparing rates, tenures, and additional charges. You can reduce your EMI burden and ensure smooth loan repayment over the tenure with careful planning.

Calculate your ₹15 Lakh Personal Loan EMI instantly with Poonawalla Fincorp and plan your finances today! Apply now for a Personal Loan and get quick, hassle-free approval.

FAQs 

Can I first calculate my EMI before applying for a ₹15 Lakh Personal Loan?

Yes, the EMI calculators allow you to determine monthly payments before applying for a Personal Loan. This helps plan your budget effectively and achieve your financial goals wisely.

Is it good to obtain a ₹15 Lakh Personal Loan for 10 years?

A 10-year period helps to lower your EMIs; however, it raises the total interest paid. If a higher EMI is affordable to you, a shorter tenure helps to save interest.

What will be the impact on EMI if I switch from a fixed to a floating interest rate in the middle of my Personal Loan term?

Depending on changes in market interest rates, the EMI may go up or down if you change your Personal Loan to a floating rate.

In comparison to smaller loans, how is the EMI on a Personal Loan of ₹15 Lakh?

Generally, larger loans have higher EMIs; however, the interest portion may reduce over time faster than smaller loans due to higher principal repayment in later months.

What is the impact of part-payment of the loan on the EMI or tenure?

Depending on your choices and the lender's policies, making partial payments might either lower your EMI or shorten the loan term.