Taking a Personal Loan is a smart way to meet your financial requirements, be it a wedding, travel or unexpected expenses. However, to ensure a smooth borrowing experience, you must understand how EMI on your Personal Loan is calculated. Knowing your loan EMIs can help you make a well-informed, responsible borrowing decision. In this blog, we’ll discuss the importance of using an EMI calculator before committing to a Personal Loan. Let’s dive in!
What is a Personal Loan EMI Calculator?

A Personal Loan EMI calculator is an online tool that helps you plan your estimate monthly loan repayments based on three primary inputs: loan amount, tenure (loan duration), and interest rate. It provides you with a quick and accurate picture of your monthly repayments, including both the principal and the interest.
Benefits of Using a Personal Loan EMI Calculator
1. Better Financial Planning
Knowing
your EMI in advance helps you plan your monthly budget efficiently.
You can assess whether the EMI fits comfortably within your monthly
income and expenses.
2. Comparison of Loan Offers
With an
EMI calculator, you can easily
compare different loan offers from various lenders. Even a slight
difference in interest rates or loan tenures can significantly
impact your EMI, and this tool helps you identify those effects clearly.
3. Saves Time and Reduces Errors
Manual calculations can be time-consuming and are prone to errors.
An EMI calculator provides accurate results instantly, saving you
valuable time and ensuring you base your decision on correct
information.
4. Helps Choose the Right Loan
Tenure
If your EMI turns out to be too high, you can
adjust the loan tenure to a longer period, which lowers your
monthly burden. The calculator allows you to try multiple
scenarios until you find the balance between affordable EMIs and
minimum interest rate.
Steps to Use an EMI Calculator
Different lenders have different EMI calculator applications. But with Poonawalla Fincorp you can check your loan EMIs in just a few steps. Here’s a step-by-step guide:
1. Enter the Loan Amount
Enter the
total amount you wish to borrow. This could range from ₹1Lakh to ₹50
Lakhs, depending on your needs.
2. Select the Interest
Rate
Enter the applicable annual interest
rate. You can input different rates to see how your EMI
changes.
3. Choose the Loan Tenure
Select
a duration over which you plan to repay the loan. This is usually
measured in months, and Poonawalla Fincorp offers a loan tenure from
12 to 84 months.
Once you enter all these details, the calculator will instantly show your EMI, total interest payable, and the total repayment amount.
Common Mistakes to Avoid When Calculating EMI
EMI calculators are simple to use, but overlooking certain details can lead to incorrect loan assessments. Here are the common mistakes you must avoid:
1. Ignoring Processing Fees and Other Charges
Some lenders charge processing fees, prepayment charges, and
other hidden costs. These are not reflected in EMI calculators unless
you factor them in manually. Always check the full cost of borrowing
before making a borrowing decision.
2. Entering Incorrect
Interest Rates
Using the wrong interest rate can
impact on your EMI calculation. Make sure you use the correct rate
offered by the lender.
3. Not Considering Floating
Interest Rates
If you opt for a floating rate loan,
your EMI might change with market fluctuations. An EMI calculator
assumes a fixed rate, so prepare for variations if your loan isn’t
at a fixed rate.
4. Overlooking Income
Fluctuations
Sometimes we calculate EMI based on our
current income without considering possible changes in the future.
It’s wise to leave some financial cushion for emergencies or income variations.
To Conclude
Taking a Personal Loan can be a smart move if done with careful planning. An EMI calculator acts as a guiding tool that enables you to understand your repayment clearly before you borrow funds. It empowers you to make better financial choices, compare offers, and avoid overstretching your budget. In a world where financial mistakes can have long-term consequences, using an EMI calculator is not just good practice, it’s an essential one. With Poonawalla Fincorp’s online EMI calculator, you can calculate your EMI repayments just by entering your loan amount, interest rate and repayment tenure. Remember a well-informed borrower is a smart borrower.
Frequently Asked Questions
1. What is a Personal Loan EMI calculator?
A Personal Loan EMI calculator is an online tool that helps you calculate your estimate of monthly loan repayments by entering all the details such as loan amount, interest rate, and tenure.
2. Can I adjust the loan tenure using the calculator?
Yes, you can experiment with different tenures to see how it affects your EMI amount.
3. What is the highest Personal Loan amount I avail of with Poonawalla Fincorp?
The highest loan amount offered by Poonawalla Fincorp for a Personal Loan is ₹50 Lakhs.
About the Author
We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply