Personal Loan EMI Calculator is a valuable online-automated tool to help you determine what your Equivalent Monthly Instalment (EMI) payment on a Personal Loan will be.
It’s very easy to use. You just need to enter the loan amount and interest rate and select the term of your loan. You can find a free personal loan EMI calculators with NBFCs like Clix Capital that give you quick answers and make it easy to plan your loans.
Personal Loans are versatile loans that you can borrow for immediate needs and is a reliable tool to raise funds. Since Personal Loans are unsecured, the interest on a Personal Loan may be higher than a home loan or car loan.
This is why it is important to be well informed about your finances in advance.
What Is A Personal Loan EMI Calculator?
Personal Loan Calculator is a digital tool that helps you calculate your future monthly installments as per the loan amount, interest rates, and loan tenure.
It helps you get a schedule of your future EMIs and plan your upcoming finances so that you can make a responsible decision.
Advantages Of Using An EMI Calculator
The personal loan EMI calculator presents the complete dissolution of the expected installments on your side. You can measure your repayment capacity and make an informed decision with its help. The tool helps you check EMI information and also calculate your EMIs for different loan amounts, interest rates, and tenures.
A Personal Loan EMI calculator has the following advantages:
- Easily accessible and saves time
- Provides fast & accurate results
- Helps you determine your EMI repayment amount as per tenure and interest rate.
- There is no room for ambiguity; most calculators give answers to the nearest degree
- Free of cost
- You can choose your preferred loan term and review your repayment schedule
Features Of The EMI Calculator
- Graphical representation of the principal amount of interest that you will be paying towards the Personal Loan. It becomes visually simpler to decipher the best alternatives using figures and charts.
- The amortisation table or schedule shows the details regarding your loan repayment. It helps you figure out how much you need to pay each month so that you can plan the rest of your personal expenses accordingly.
The elements of an amortisation table are as follows:
- The principal paid is part of your monthly payment that will be applied to the principal of the loan. This portion will increase each month as the loan expires.
- Interest is part of your monthly payment that is charged by the NBFC.
- Total payment made towards your loan.
- Remaining Loan Balance
The depreciation table provides annual and monthly data. This way, you can check the monthly figures and the yearly cumulative data.
What Factors Can Affect Your Personal Loan EMI?
The following factors influence the EMI calculation of your loan:
- Loan Amount: The larger the loan amount, the greater the EMI to pay. Your maximum loan amount is not what you ask for; instead, it is the amount offered by the loan provider, depending on your eligibility, credit rating, and repayment capacity.
- Interest rate: Loan providers determine the interest rate depending on your credit history, income, and repayment abilities. If the interest rate is high, your EMI will also be higher.
- Loan Term: Loan term options typically range from 12 months to 48 months. The tenure also impacts the EMI directly as it is directly proportional to the interest rate.
How To Calculate The Monthly Interest Rate On Personal Loans?
When you want to apply personal loan, one of the most important aspects to consider is the rate of interest offered.
Personal Loans are unsecured loans, which means you don’t need to give anything as collateral to obtain them. The approval of your loan entirely depends on your eligibility criteria, including your income, employment status, financial documents, repayment capabilities, and credit score.
When you use an EMI calculator, you must enter the rate of interest offered to get an accurate EMI figure.
Once you know the interest rate offered, you can convert the rate to a monthly rate, as the interest rate is always shown as an annual rate. You can use the formula stated below.
ROI (rate of interest) for a month = Annual ROI/ 12
For example, if the interest offered to you on your loan is 24% per annum, your monthly interest will be calculated as follows:
24/12 = 2
This means that the monthly interest will be 2%.
What Is The Formula Used For The EMI Calculation Of A Personal Loan?
The formula used to calculate EMI is:
EMI = [P x R x (1 + R) ^ N] / [(1 + R) ^ N-1]
Where
E: Equal monthly payment
P: Capital or loan amount,
R: Monthly interest,
N: Number of monthly installments or loan terms in months.
How Do You Use the EMI Personal Loan Calculator?
One of the best EMI calculators currently on the internet is Clix Capital’s Personal Loan calculator. The free EMI tool generates a result in a fraction of a second and allows you to understand if the monthly payment is convenient for you.
All you need to enter:
- The Personal Loan amount that you desire to apply for
- Personal Loan interest rate
- Duration of the Personal Loan in months or years
Points to Remember Before You Use the EMI Calculator
- EMI is a monthly payment that consists of a share of the principal amount and interest rate.
- Paying your EMIs regularly ensures that you are dutifully repaying the loan, stabilising your credit score.
- You can decide your tenure based on an EMI calculator. A higher EMI will have a shorter term and vice versa. But if you extend the loan term, it would also mean that you will be paying more interest.
- The interest rate applied to your loan amount is spread over the term of your loan.
- The amount of interest will be high in the first 2-3 years of your loan term. As you approach the end of the loan term, your EMI will consist of less interest and more principal.
Read Also: How To Safeguard Your Business Bank Account From Fraud?
Conclusion
Use the best EMI calculator to make an informed decision before taking out a loan. Clix Capital offers one of the most robust systems and tools, like the Personal Loan EMI calculators, that can bring you accurate and quick results, no matter how many permutations and combinations you use.
Using these efficient calculators, you can select the right amount and tenure based on your EMI affordability.
