According to research by the Reserve Bank of India, the need for a personal loan has increased in the last few decades. This is due to the unsecured nature of personal loans making them easily accessible online at affordable rates within a short time to help you tide over financial emergencies. A Personal loan not only caters to emergency needs but also other cases such as house renovation, funding a vacation, paying fees or purchasing a home appliance or vehicle, etc. Before opting for a personal loan, check the monthly EMI of your loan to find your repayment capability. Instead of calculating the EMI manually, use an online EMI calculator to get the output instantly and more accurately anywhere at your fingertips.
To compute the personal loan EMI, All you have to do is to enter the below-listed components as per your preference:
- Preferred Loan Amount
- Preferred Interest Rate
- Preferred Repayment tenure.
Basic Mathematical Formula To Calculate Personal Loan EMI:
If you wish to calculate manually, you can use the formula EMI = P × r × (1 + r)n/((1 + r)n - 1), where the P= Loan amount, R= Interest Rate & N= repayment tenure of the loan.
Illustration:
The outcome of calculating the EMI for an Rs.50,000 loan at a Tenure of 2 years at the different Interest rates are the following:
|
Loan Amount |
Rate of Interest |
Tenure |
Monthly EMI |
|
50,000 |
10.99% |
24 Months/2-years |
Rs. 2,330 |
|
50,000 |
12% |
24 Months/2-years |
Rs. 2,354 |
|
50,000 |
14% |
24 Months/2-years |
Rs. 2,401 |
|
50,000 |
16% |
24 Months/2-years |
Rs. 2,448 |
|
50,000 |
18% |
24 Months/2-years |
Rs. 2,496 |
|
50,000 |
20% |
24 Months/2-years |
Rs. 2,545 |
Kindly note that the EMI for 50,000 loan will change if you change tenure & interest rate. However, the lender will determine the EMI based on your credit score, income & repayment capability.