personal loan emi calculator

Personal Loan EMI Calculator

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Components Of The Personal Loan Monthly EMI Calculator

There are 3 key components while using the Personal Loan EMI calculator online. You can get accurate results by changing these values based on the loan terms offered to you and planning your loan accordingly. Here is a quick guide.

Loan Amount - This is the loan sanction you want or have been approved for. During the planning phase, you should enter the amount you want to borrow. Do note that you can enter the values for the loan amount numerically or by using the slider feature on the calculator.

Interest Rate - Interest rate can be calculated easily using the Personal Loan interest rate calculator. This is the rate offered to you by us. Generally, it starts at an attractive rate of 9.99%* p.a, but can vary based on your financial profile. Enter this rate accurately as it dictates your interest payable and the EMI amount.

Tenure - Personal loan tenure implies loan repayment duration and is a factor you should plan for very carefully. Choosing a short tenure reduces the interest payable but increases the monthly instalment amount as well. On the other hand, a long tenure reduces the EMI amount but also increases the interest on the loan. The ideal tenure has an acceptable EMI amount and total interest payable.

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To borrow efficiently and optimally, you must plan your loan using an online Personal Loan calculator. This means knowing the amount you need, the tenure you’re comfortable with, and identifying the EMIs you can handle. Proper loan planning can be very helpful and is a must-do for all borrowers. When done right, it can not only save you money in the form of interest, but can also keep you from making common, and costly mistakes.

One of the best tools to aid this planning process is the EMI calculator for Personal Loan. In India, almost all lenders will have such a provision available, and Poonawalla Fincorp offers this digital provision as well. With it, you can easily calculate the interest payable and know your Personal Loan online repayment schedule within seconds.

We provide a Personal Loan EMI calculator to assist you in making informed selections based on reliable data. A Personal Loan calculator is a tool that allows you to calculate your EMI depending on a variety of scenarios. Multiple loan amounts and tenures can be chosen, and the appropriate EMI can be calculated in seconds. This is a free online tool residing on our website that makes borrowing a lot easier. It's easy to use, accessible from our website, and incredibly user-friendly. Our digital solutions are meant to make borrowing more convenient, given how important it is to borrow wisely.

Steps To Calculate Personal Loan EMI With The Calculator

  • Step 1: Visit the webpage -
  • Step 2: Enter the loan amount you wish to borrow
  • Step 3: Enter the interest rate offered to you
  • Step 4: Input the loan duration in years under the section ‘Tenure’
  • Step 5: Click on ‘Calculate’ button
  • Step 6: Check the auto-generated results under ‘EMI Amount’

Personal Loan EMI calculator has numerous benefits which helps the borrower to plan the loan tenure easily. Here are few benefits of Personal Loan EMI calculator that you must be aware as a borrower:

  • Planning the loan tenure: While applying for Personal Loan, EMI calculator helps in planning the Personal Loan tenure. It helps in deciding the time period which is suitable for the borrower.
  • Planning the loan repayment: Timely repayment of the loan is considered as a healthy financial habit for a borrower. It helps in creating a good image of the borrower in the lender’s eyes. Also, it helps in maintain a good credit score. Using Personal EMI calculator directly assists you in planning the Personal Loan repayment schedule.
  • Easy to use: Personal Loan EMI Calculator is easy to use allowing you understand factors such as loan tenure, loan repayment, monthly EMI, etc. Prior to applying for Loan, it is advisable that you should use the Personal Loan EMI Calculator.

Personal Loan EMI calculator is used for calculating Personal Loan monthly payment which can be done by using these below mentioned methods:

  • Online calculator: The easiest and quickest approach to get accurate answers is to use the Personal Loan EMI calculator. All you have to do to calculate Personal Loan EMI is to enter the loan amount, tenure, and interest rate. The result will be generated almost instantly.

Online EMI calculators can be a great way to determine your monthly EMIs without having to calculate the amount manually. We offer an easy-to-use online EMI calculator on our official website to help you plan your loan amount informatively. To use the calculator, all you have to do it:

  • Enter your loan amount
  • Enter the interest rate offered to you
  • Enter your preferred loan tenure

The tool will give out an automated response, which is going to be an estimation of your monthly EMI amount. For example, if your loan amount is Rs. 10,00,000, and you wish to repay your loan over a tenure of 5 years, your monthly EMI amount will be Rs. 21,198.*

Please note that the calculated amount is just an estimation of your monthly EMI on the basis of the information entered by you. Your actual EMI amount may differ on the basis of other terms and conditions.

  • Microsoft Excel: This method necessitates the use of the Microsoft Excel application and the 'PMT' formula. Select a cell on the sheet, select a formula, and precisely enter the loan data into the following variables.
    ○ 'NPER' stands for month-to-month loan tenure.
    ○ 'Rate' refers to the interest rate every month.
    ○ 'PV' stands for principal value or loan amount.
    ○ 'FV' and ‘Type’ should be set to 0 and 1, respectively.
  • Manual calculation: Use the following formula to manually determine the EMI amount for a Personal Loan:
    E = [P x R x (1+R) N] / [(1+R) (N-1)]
    ○ The letter 'P' stands for the principal amount.
    ○ The letter 'N' stands for the tenure as number of years
    ○ The interest rate on a monthly basis is denoted by the letter 'R.'

How Much Will the EMI for a ₹10 Lakh Personal Loan?

If you apply for a ₹10 Lakh Loan at an interest rate of 9.99% for a period of 5 years, your loan EMI amount will be approximately ₹21,242*. You can use the Personal Loan EMI calculator to determine which interest rate and loan tenure best suits your budget.

Example for EMI Calculation of Rs.10 Lakh Personal Loan

The EMI for a Personal Loan of ₹10 Lakh will depend on the loan tenure and interest rate. For example, ₹10 Lakh Personal Loan EMI for 5 years at 10% will be ₹21,247. Similarly, below table will show the EMI calculation for Rs. 10 Lakh for different tenures at 10% interest rate.

Tenure       Approximate EMI at 10% interest rate
2 years ₹46,145/month
3 years ₹32,267/month
4 years ₹25,363/month
5 years ₹21,247/month

There are various factors that helps in reducing EMIs on a Personal Loan such as opting for longer repayment tenure on the Personal Loan, getting a co-applicant with higher income and credit score, etc. While you keep these factors in mind, you can choose Personal Loan repayment calculator in India to calculate your remaining loan amount and Personal Loan tenure.

Here is a detailed description of factors that help in reducing EMIs:

  • Increasing Your Credit Score
    Your credit score is one of the most important factors that can influence the interest rate on your Personal Loan. Lenders prefer loan applicants with good credit scores, and they offer lower interest rates to such applicants.
  • Choose a longer tenure
    Consider extending the length of your Personal Loan to reduce your EMIs.
  • Make an effort to get a reduced interest rate
    If the individual has a good working relationship with their lender, they may be able to negotiate a lower interest rate on the loan. Banks/NBFC's may be willing to do so for existing customers to increase brand loyalty and attract new customers.

    Before trying any of these tactics, be sure to use a Personal Loan calculator and conduct a thorough cost-benefit analysis.

Personal Loan prepayment is where the borrower repays the Personal Loan prior to end of the predetermined loan tenure. Generally, while taking a loan, the lender and borrower agree upon a pre-determined loan tenure. Loan tenure is the time which is given to the borrower to payback the loan amount. In few cases, lender impose prepayment fees for early repayment. However, if there is no such clause in the loan agreement, you should repay the loan before ending the loan tenure. Also, this will help you in saving existing EMI amount. To ensure that you pay the EMIs on time and know if you can repay the loan prior to the ending of the loan tenure, you should use Personal Loan prepayment calculator in India.

What factors determine the Personal Loan EMIs?

  • Loan Amount: EMIs is monthly amount that a borrower pays for the loan amount he/she has borrowed from the lender. Personal Loan EMI is influenced by various factors such as Loan Amount, Tenure, Credit score and type of interest rate. Higher loan amount will result in higher EMI amount whereas lower loan amount will lead to lower EMI amount.
  • Tenure: Long term tenure equals to lower EMI and Short-term tenure will have higher EMI.
  • Credit Score: With higher credit score, there are chances that the borrower will be eligible for lower interest rate. This implies that he/she will have to pay lower EMIs. On the other hand, lower credit score will have an impact on your interest rate which will directly impact your EMIs.
  • Type of interest rate: Fixed and floating interest rates determine the EMI payments. While fixed interest rate is predetermined interest rate that will be fixed for the entire loan tenure, floating interest rate varies as per RBI policy action.

Why should I calculate my EMIs?

You must calculate the Personal Loan EMI amount to know if you can afford the loan. Unnecessarily stressing your affordability may cause you to miss EMI payments later and incurring hefty penalties.

How can I plan prepayment with the EMI calculator?

Once you enter the required details into the EMI calculator, click on the ‘Check Repayment Schedule’ button. This will give you access to the amortization schedule, which is a detailed table with a clear breakup of your monthly payments consisting of EMI amount, principal payable, and interest payable. With this you know how much interest has already been paid and will be paid in future that will help to easily identify the best time to prepay your loan.

How can the EMI calculator help me reduce the EMI amount?

You can use the EMI calculator to adjust the Personal Loan tenure until you find an acceptable EMI amount. You must either increase the tenure value or decrease the loan amount you wish to borrow to finalize EMI amount suitable as per your current financial health.

How can I access the Personal Loan online repayment schedule offline?

To access the repayment schedule offline, simply enter the accurate values into the calculator and click on ‘Download Repayment Schedule’. A PDF file will get automatically downloaded with all the information accessible offline.

What is the tenure available for a Personal Loan?

The time allowed to pay back your Personal Loan can range from 12 to 60 months. Keep in mind that the time taken to repay the loan will directly affect the EMI payable. If you want lower EMIs, you must take the loan for a more extended period. However, a longer repayment tenure means you will pay more interest.

What happens if in case I fail to pay my EMI?

It is essential to pay your EMIs on time. If you fail to do so, you will have to pay a penalty for missing payments. Also, any missed payments will negatively affect your credit score and may hinder your chances of getting a new loan. Use a Personal Loan EMI calculator and calculate your EMI beforehand to avoid such scenarios.

How is the Personal Loan interest calculated?

The interest payable on your Personal Loan is calculated based on the sanction amount, interest rate, and tenure of the loan. The best way to know the interest payable is to use the Personal Loan calculator on our website.

Do I have to pay to use the Personal Loan monthly EMI calculator?

No. The online Personal Loan calculator is completely free and can be used multiple times whenever you need it.

What is the Personal Loan amortization schedule?

A Personal Loan amortization schedule is a detailed table that outlines the repayment plan for a Personal Loan. It provides a month-by-month breakdown of the loan repayment, including the principal amount, interest charges, and the remaining loan balance over the loan term.

The amortization schedule is an essential tool that helps borrowers understand how their loan will be repaid and how each payment contributes to reducing the outstanding balance. It provides transparency and clarity regarding the loan repayment process.

The key components of a Personal Loan amortization schedule are as follows:

  • Payment Number represents the sequential number assigned to each monthly payment.
  • Payment Date is the date on which the payment is due.
  • Opening Balance is the outstanding loan balance at the beginning of the month.
  • EMI (Equated Monthly Installment) is the fixed amount the borrower needs to pay each month, comprising both principal and interest components.
  • Interest Portion. This is the portion of the EMI that goes towards interest payment. It is calculated based on the outstanding loan balance and the interest rate.
  • Principal Portion reflects the amount of the EMI that is allocated towards reducing the loan principal. It is the difference between the EMI and the interest portion.
  • Closing Balance is the remaining loan balance after deducting the principal portion from the opening balance. This amount carries forward to the next month.

The amortization schedule allows borrowers to track their progress in repaying the loan. It helps them understand the interest paid overtime and the impact of additional payments or prepayments on the loan term.

By referring to the amortization schedule, borrowers can plan their finances better, budget for monthly payments, and even assess the feasibility of making extra payments to pay off the loan sooner. It also serves as a reference document for any discrepancies or concerns regarding the loan repayment.

What is the prepayment penalty on a Personal Loan?

A prepayment penalty on a Personal Loan is a fee charged by the lender if the borrower chooses to repay the loan before the agreed-upon loan term. It is a way for lenders to compensate for potential lost interest income when a loan is paid off early.

When borrowers sign a loan agreement, they commit to making regular payments over a specific period. However, situations may arise where borrowers have the means to repay the loan sooner, either partially or in full. In such cases, if the loan agreement includes a prepayment penalty clause, the borrower will be required to pay an additional fee for early repayment.

  • How is the prepayment penalty calculated
    The prepayment penalty amount and conditions vary depending on the lender and the loan agreement. It is typically a percentage of the outstanding loan balance or a specified number of months' interest. The penalty may be higher if the loan is repaid early in the loan term, gradually decreasing over time.

  • Reason for prepayment penalty
    The purpose of imposing a prepayment penalty is to discourage borrowers from paying off the loan early, as it reduces the potential interest income for the lender. However, it is important to note that not all Personal Loans have prepayment penalties. Some lenders offer loans without any penalty for early repayment, providing borrowers with flexibility and the option to save on interest expenses.

  • Review the prepayment penalty clause
    Before signing a loan agreement, it is crucial for borrowers to carefully review the terms and conditions, including any prepayment penalty clauses. Understanding the potential penalties associated with early repayment allows borrowers to make informed decisions about their loans and consider the impact on their financial situation.

    If borrowers anticipate the possibility of repaying the loan early, it is advisable to choose a loan product that offers the flexibility to prepay without incurring any penalties. Comparing loan options from different lenders and discussing the terms with them can help borrowers find a suitable loan with favorable prepayment conditions.

What is the formula for a Personal Loan calculator?

A Personal Loan calculator helps individuals estimate their monthly loan EMIs based on key parameters such as loan amount, interest rate, and loan tenure. While there are various online loan calculators available, the underlying formula used for Personal Loan calculations involves three primary components: loan amount, interest rate, and loan tenure.

The formula to calculate the Equated Monthly Installment (EMI) for a Personal Loan is as follows:

EMI = [P x R x (1+R) ^ N] / [(1+R) ^ N - 1]

EMI represents the Equated Monthly Installment.
P represents the principal loan amount.
R represents the monthly interest rate.
N represents the number of monthly installments or the loan tenure.

By utilizing this formula, individuals can input the loan amount, interest rate, and tenure to compute the monthly EMI.

Let's consider an example where a borrower takes a Personal Loan of ₹500,000 at an annual interest rate of 12% for a tenure of 3 years (36 months).

P = ₹500,000
R = 12% per annum / 12 months = 1% per month
N = 36

Putting these values into the EMI formula, we get:

EMI = [500,000 x 0.01 x (1+0.01) ^ 36] / [(1+0.01) ^ 36 - 1]

Upon calculation, the EMI is derived, providing the borrower with an estimate of their monthly repayment amount.

Things to keep in mind:

  • It is important to note that the formula assumes a fixed interest rate throughout the loan tenure. In practice, some loans may have variable interest rates, resulting in fluctuating EMIs over time.
  • Additionally, the formula does not consider other potential charges such as processing fees or prepayment penalties. These factors should be taken into account separately to gain a comprehensive understanding of the total loan repayment.

The Personal Loan calculation formula mentioned above serves as the foundation for Personal Loan calculators. It enables borrowers to estimate their monthly loan payments based on the loan amount, interest rate, and tenure.

What is the duration of a Personal Loan EMI?

The duration of a Personal Loan EMI (Equated Monthly Installment) is determined by the loan tenure, or the repayment period agreed upon between the borrower and the lender. It represents the length of time over which the borrower will make regular monthly payments to repay the loan.

Here are some key details of the duration of a Personal Loan:

  • The loan tenure for Personal Loans varies and is typically stated in terms of months or years. Common loan tenures range from 12 months to 60 months or even longer, depending on the lender's policies and the borrower's preferences.
  • The duration of the Personal Loan EMI plays a significant role in determining the monthly repayment amount. Longer loan tenure generally results in smaller EMIs since the total loan amount is spread over a greater number of months. However, this also means that the borrower will end up paying more in total interest over the extended repayment period.
  • On the other hand, a shorter loan tenure may result in higher EMIs, as the loan amount is divided over a shorter period. While this means the borrower will pay off the loan faster and pay less in total interest, the monthly repayment amounts can be higher, potentially impacting the borrower's monthly budget.

The choice of loan duration depends on several factors, including the borrower's financial situation, income level, and ability to make higher monthly payments. Some borrowers may prefer a longer loan tenure to keep their monthly payments more affordable, while others may opt for a shorter tenure to pay off the loan quickly and save on interest charges.

It is important for borrowers to carefully consider the duration of their Personal Loan EMI and choose a tenure that aligns with their financial goals and capabilities. They should evaluate their income, expenses, and financial obligations to determine the loan tenure that strikes a balance between manageable monthly payments and overall interest costs.

Does prepayment reduce EMI?

Prepayment refers to making an extra payment towards your loan principal amount before the scheduled due date. While prepayment can reduce the overall interest cost and the loan tenure, it does not directly reduce the Equated Monthly Installment (EMI) amount. Let's understand this in more detail.

When you make a prepayment, the extra amount goes towards reducing the principal balance of the loan. As a result, the outstanding loan amount decreases, which can lead to interest savings over the remaining loan tenure. However, the EMI amount remains the same unless you specifically request a recalculation of the EMI with the lender.

For example, let's say you have a Personal Loan with an EMI of ₹ 5,000 and a loan tenure of 36 months. If you make a prepayment of ₹ 50,000, the outstanding principal amount reduces by that amount. As a result, the interest charged on the remaining principal decreases, which can result in interest savings over the remaining tenure. However, the EMI amount of ₹ 5,000 remains the same unless you request a recalculation.

If you want to reduce your EMI amount, you have a few options:

  • Tenure Reduction: By making prepayments towards your loan principal, you can reduce the loan tenure. A shorter tenure leads to higher EMI amounts but results in faster loan repayment.
  • EMI Recalculation: You can contact your lender and request a recalculation of the EMI based on the reduced outstanding principal balance. This can lead to a lower EMI amount, making it more manageable for your monthly budget.
  • Refinancing or Balance Transfer: Another option is to explore refinancing or transferring your loan to another lender who offers lower interest rates or more favorable terms. This can help you obtain a new loan with a lower EMI amount.

It's important to note that each lender may have their own policies regarding prepayment and EMI recalculation. Some lenders may charge prepayment penalties or fees, while others may allow partial prepayments without any charges. It's advisable to check with your lender to understand their specific policies and procedures.

Can we pay all EMI at once?

Yes, it is generally possible to pay all the remaining EMIs of a loan at once, commonly known as making a full prepayment. By paying off the outstanding loan balance in a lump sum, you can effectively close the loan and relieve yourself of future monthly EMI obligations. However, it's important to consider a few factors before deciding to pay all the EMIs at once:

  • Prepayment Charges: Some lenders may charge a prepayment penalty for paying off the loan before the scheduled tenure. This penalty is typically a percentage of the outstanding loan amount and is intended to compensate the lender for the interest they would have earned had the loan been repaid as per the original schedule. Check your loan agreement or consult with the lender to understand if any prepayment charges apply.
  • Interest Savings: By paying off all the EMIs at once, you effectively reduce the outstanding loan balance and save on future interest payments. This can result in significant interest savings, especially if the loan has a long tenure or carries a high-interest rate.
  • Financial Impact: Consider your overall financial situation before making a full prepayment. Ensure that you have sufficient funds to pay off the loan without compromising your financial stability or neglecting other financial obligations. Evaluate the impact of paying off the loan on your cash flow and financial goals.
  • Loan Tenure: Paying off all the EMIs at once can lead to the early closure of the loan and free up your monthly budget from loan repayments. This can provide financial relief and increase your disposable income, allowing you to allocate the funds towards other financial goals or investments.
  • Communication with the Lender: If you decide to pay off all the EMIs at once, inform the lender in advance. They can provide you with the necessary instructions and assist you with the loan closure process. Ensure you obtain a formal closure statement or No Objection Certificate (NOC) from the lender once the loan is fully repaid.

What happens if I pay more than EMI?

If you pay more than the Equated Monthly Installment (EMI) amount on your loan, the additional amount is considered an extra payment toward the loan principal. This can have several potential outcomes, depending on the terms and conditions of your loan agreement and the policies of your lender. Here are some possible scenarios:

  • Reduced Principal Balance: The extra amount you pay above the EMI is deducted from the outstanding loan principal. As a result, your loan principal decreases faster than the regular EMI payments alone. This can help reduce the interest charged on the remaining principal balance, resulting in interest savings over the loan tenure.
  • Shortened Loan Tenure: By making additional payments towards the loan principal, you effectively reduce the outstanding loan balance. This can lead to shorter loan tenure, as the loan will be repaid faster than the original schedule. Shortening the loan tenure can result in interest savings and help you become debt-free sooner.
  • Interest Savings: Paying more than the EMI can result in interest savings over the loan term. By reducing the principal balance earlier, you reduce the overall interest that would have been charged on the loan. This can lead to significant interest savings, especially for long-term loans or loans with high-interest rates.
  • Prepayment Penalties: Some lenders may charge a prepayment penalty or fee if you make extra payments that exceed a certain limit or if you repay the loan before the scheduled tenure. It's important to review your loan agreement or contact the lender to understand if any prepayment penalties apply.
  • EMI Adjustment: Depending on your lender's policies, the extra amount you pay may be adjusted towards future EMIs. In this case, your future EMI amounts may be reduced to reflect the additional payment made. This can help lower your monthly repayment obligations and provide financial relief.

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