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A personal loan is cash that you obtain from a bank. You do not need to pledge anything, like a house, car, etc. You can spend this money on weddings, home remodeling, or traveling. The monthly amount you pay to repay the loan is known as EMI. The full form of EMI is Equated Monthly Instalments. The EMI is a specific amount that is paid regularly. It is usually paid every month. It is the original sum of money borrowed plus the interest the bank charges on the loan.
What is a Personal Loan EMI Calculator?
A Personal Loan EMI Calculator is an online tool. This can be used by borrowers and loan providers. It lets you know how much money you will pay every month. With this tool, you only require the loan amount, the months to repay the loan, and the interest rate. It then displays the monthly installment value, the total accrued interest charges, and the total amount to be paid. This makes the budgeting part and the planning part easy. It also assists in making sure that one can have enough cash to pay an amount back towards the loan.
How Does the Personal Loan EMI Calculator Work?
The EMI Calculator uses a simple formula to calculate your EMI:
EMI = (P × R × (1 + R) ^ N) / ((1 + R) ^ N – 1).
Over here, these variables are used to denote the following:
- P is the Principal loan amount.
- R is the Interest rate.
- N is the Number of months for repayment.
These things determine EMI, and if you alter any of these, then the outcome will be a changed EMI. For instance, if you take a loan of ₹10 lakhs for 2 years @ an interest rate of 15%, then your EMI would be ₹ 48087.
How to Use a Personal Loan EMI Calculator?
- Select Loan Amount: Adjust the slider, and you can set the amount you would like to borrow.
- Select Loan Tenure: Decide the months you wish to be given to clear the loan.
- Select Interest Rate: Move the slider to choose the interest rate that the bank gives.
- View EMI Results: The calculator immediately shows the EMI, total interest, and the total amount you will give to the bank. Try changing the sliders to understand how variation in loan amount, tenure, and interest rate affects your EMI.
Benefits of Using a Personal Loan EMI Calculator
Using a Personal Loan EMI Calculator is easy. It also saves time. Here are some benefits:
- Quick Calculations: The best advantage of this type of tool is that you get your EMI in seconds.
- Accurate Results: The calculator here gives you the correct EMI amount.
- Easy Planning: It helps you plan your budget by showing the total cost of the loan.
- Compare Offers: Compare loans from different banks to find the best deal.
- Avoid Mistakes: The calculator ensures accuracy and prevents errors.
Conclusion
Check with the Personal Loan EMI Calculator for the best loan. Adjust the loan amount, duration, and rate of interest to discover the EMI outcome. This assists you in choosing a loan package within your financial range.