Personal Loan Emi Calculator

Personal Loan EMI Calculator

Do you want to renovate your home, buy an expensive new gadget, or simply go on an indulgent vacation but are looking for some funds to cover these short term expenses? A Personal Loan might be the easy answer for you. But the question you might worry over is - how much exactly will that loan cost you and, is it the best deal you can get? Well, there’s no need to worry any more. You can use CreditMantri’s Personal Loan EMI Calculator to see exactly how much your personal loan will cost in terms of interest payments and to determine the best loan you can get for your requirements.

What is a Personal Loan EMI?

EMI is an abbreviation of Equated Monthly Installment. It is the fixed amount of money you need to pay every month, on a fixed date, to your lender, in order to pay off your entire loan (including interest). Your EMI consists of two components: repayment towards the principal (the original amount borrowed) and repayment towards interest charges. The Personal Loan EMI Calculator will help you determine exactly how much you will need to set aside from your income every month towards your EMI payment.

How does the Personal Loan EMI Calculator help you choose the best loan?

It can be very confusing to evaluate the multiple loan offers available in the market and it is nice to get some trusty assistance to cut through all the numbers to determine how much each loan will cost you. CreditMantri’s Personal Loan EMI Calculator is probably the easiest way to compare various personal loan offers and choose the loan best suited to your requirements. Using the Personal Loan EMI Calculator gives you a simple and quick way to accurately compare the various loans and determine what your EMI will be with the different lenders.

When you are thinking of applying for a personal loan, you also need to think about how much to borrow, how long you want to borrow for, and at what price. Using this tool, you can try out various loan combinations – for example, how much your EMI will be for a larger amount or with a shorter repayment period. It is useful to know the actual EMI amount you will pay for the various combinations you try out.

All you have to do is to input the loan amount, the interest rate and the tenure of the loan. You can choose to input various combinations and permutations of all three parameters to see which combination suits your personal financial needs the best. Once you determine this combination, you can research the various offers available and choose the lender that offers you the most suitable loan.

How to use the Personal Loan EMI Calculator?

Using the Personal Loan EMI Calculator is a simple 3-step process.

You need to have just 3 details:

• The loan amount
• The tenure or loan period ( Tip: The longer the loan period, the smaller the monthly EMI payment, but the greater the total interest amount charged over the whole loan period)
• The interest rate charged

Let us take an example. Say you want to check what your EMI will be if you take a personal loan of Rs 5 lakhs, for a tenure of 3 years, at an interest rate of 12% p.a. You need to complete the following actions which will only take a few seconds:

• Move the slider in the Loan Amount box to choose 5 lakhs.
• Next, move the slider to 3 in the Loan Tenure box.
• Last, move the slider to 12 in the Rate of Interest box

You will see your

• Monthly EMI payment ( in green)
• The total amount of interest you need to pay over the entire tenure of your loan
• The total amount you need to pay (loan amount plus interest) to repay your loan in full. (You can input different loan amounts, interest rates or tenures to find out which combination is best suited to your budget and find the answers in minutes.)
• Amortization Table

Your Amortization Table shows you in detail the following items:

1. the interest component of your EMI payment
2. the principal component of your EMI payment,
3. the total amount you will pay on your personal loan every.
4. the balance outstanding
5. the percentage of the loan you have paid off each year
6. You will also see the table in graphic form so that you get a quick illustrative idea of the break-up of your EMI payments.

What are the benefits of using the Personal Loan EMI Calculator?

Here are some advantages of using a Personal Loan Calculator:

Accurately estimates the cost of your loan: The biggest concern when applying for a loan is what the loan will cost you. The EMI Calculator for Personal Loans takes care of that worry. It works like a kind of personal loan interest calculator and is the simplest way to evaluate what your loan will cost in terms of interest.

Enables quick comparative pricing: When you input the various lender offers available on the market, you get an instant idea of how much each loan offer will cost you. You can make your final decision after reviewing the numerous offers based on the results of the EMI Personal Loan Calculator.

Enables quick comparative pricing: When you input the various lender offers available on the market, you get an instant idea of how much each loan offer will cost you. You can make your final decision after reviewing the numerous offers based on the results of the EMI Personal Loan Calculator.

Accurate: Doing the maths for each loan offer manually carries the risk of making mistakes. Even if you are using a calculator, there is room for human error each time you input the numbers. This might lead to inadvertently choosing the wrong loan based on miscalculations. Using the Personal Loan Calculator allows you to do multiple variations with accurate results every single time.

Quick: Doing the sums manually is not only error-prone, but can be tedious and time consuming. There are better ways to spend your precious spare time than doing repetitive math calculations. Our EMI Calculator for Personal Loans will take care of all your calculations instantly.

Simple: It is extremely easy to use the Personal Loan Calculator. All you need to do is to input three numbers.

Free: You can use the tool as many times as you want and it will not cost you anything. Moreover, you can use the EMI Calculator for Personal Loans at any time, from any place at your convenience.

What is a Personal Loan Eligibility Calculator?

Do you know if you qualify for a personal loan? Or what size of loan you are eligible for? Before you make an application to a bank or NBFC, you need to think carefully about what size of loan or what repayment terms you will qualify for. If you apply for a loan and are rejected, it has a long term negative impact on your ability to access future loans. The Personal Loan Eligibility Calculator takes out the worry of wondering if you will be rejected. It lets you know what size of loan you are eligible for. You only need to answer a few questions which could include details about:

• Your name
• Place of residence
• Date of birth
• Salary
• Work experience in years
• Current EMI payments

The calculator tool will estimate your eligibility for a personal loan so that you are able to make a more informed decision when applying for a loan. This will help you minimise the chances of rejection. The personal loan calculator for India will use information relevant to the local credit market and check your eligibility accordingly.

What are the factors that influence approval for a personal loan?

• Although you might not be aware of your credit score, it can play an important role in the loan approval process. It is a good idea to remain up to date on your credit score when you plan to apply for a loan or credit card. You can learn your credit score by obtaining a copy of your credit report from one of the three main credit rating bureaus in India. It is generally advisable to have a credit score of at least 750 before applying for a personal loan. Your credit score might not appear as one of the criteria in the eligibility calculator as the lenders obtain it independently, but it is a significant criteria for lenders.
• Your employment status is also an important factor in the loan-approval process. Since personal loan customers do not provide any collateral, lenders need to make sure that you will have a steady monthly income over the loan period that will allow you to make regular repayments. That is why they pay particular attention to your employment stability and will look at how long you have been in the same job or same company. An individual with a history of frequently changing jobs might not be readily approved for a personal loan as it signifies that he/she might not have a stable or predictable salary over the loan period and might be unable to make regular payments. It is probably a good idea to be in the same job or at least the same company for at least a year before you apply for a personal loan.
• Your annual income is another significant factor. Again, since there is no collateral, the banks want to be assured that you have a sufficient income (from salary and other sources) that will allow you to make your monthly repayments. The higher your income, the better your chances of being approved for a personal loan, depending of course, on the size of the loan you are applying for. A personal loan calculator in India will give you an estimate of the kind of loan that you might qualify for among lenders in the country.
• Your past EMI payment record is also of importance. Lenders will look at your credit report to check if you have consistently demonstrated financial discipline and a pattern of timely EMI payments. If they see that you have regularly made payments and fulfilled your debt obligations, they will be inclined to review your loan application more favourably.

What are the main features of a Personal Loan?

There are two attractive features of a personal loan:

• Complete flexibility of end-use. There are no restrictions on how you can spend the loan amount. You can use the money for emergency medical expenses, a holiday trip, or to buy furniture. This in contrast to a home loan or auto loan where the loan amount can only be used to buy a property or a vehicle respectively. You have the freedom to use the money in any way you want.
• Lack of collateral. A personal loan is an ‘unsecured loan’, meaning you are not required to provide any security to the lender in the form of cash, shares or any other assets. This might make it more attractive to some customers who may not be able to raise the cash required as collateral. Since the lender has no collateral to use as security, they might have slightly different criteria when approving a personal loan as compared to an auto loan or gold loan. This is why a Personal Loan Eligibility Calculator is useful in estimating what kind of loan you might qualify for with your credit profile.
• Amount and tenure: There is no typical loan amount and the loans can range from a few thousand rupees to several lakhs. When applying for a personal loan, it is important to make sure that you apply for a loan amount that you are eligible for. If you ask for too high an amount, compared to your income, you run the risk of being rejected. The final loan amount that is approved depends on the lending criteria used by the bank/NBFC and how they evaluate your ability to repay the loan.

In terms of tenure, personal loans are relatively short-term loans and the tenure can range from 1-5 years. This is in contrast to home loans, for example, that can have a repayment period of up to 30 years.

When should I choose a personal loan?

• If you need money urgently and for a relatively short term, then a personal loan is a good option. The loan disbursal can be relatively quicker than for most other loans since you do not have to provide documentation for the purpose the loan amount will be used for. For a home loan, for example, you need to get the legal documents pertaining to the title deed of the property, all the required government approvals and other supporting documentation. Since you are free to use the personal loan for any purpose, this end-use documentation is not required.
• If you do not have any assets to pledge as collateral for a loan, then a personal loan might be a good option. However, make sure that you check your credit history and your eligibility before you apply.

What factors affect the interest rate on personal loans?

Remember that personal loans are the most expensive loans in the formal consumer banking system. They incur the highest interest rates since they are ‘unsecured’, and the bank or other financial institution has no safeguard against default. You can use a personal loan interest calculator to check how much you will need to pay in interest costs.

The interest rate on a personal loan can be influenced by a few factors including:

• Loan amount compared to your annual income: If your loan amount is a small percentage of your annual income, then your interest rate will tend to be lower and there is a better chance that your application will be approved. Conversely, if your loan amount is a high percentage of your annual income, lenders might not be confident about your ability to repay and might insist on a higher interest rate on the loan or, at worst, reject your application.
• Credit report and credit score: Since this is an unsecured loan, lenders are particular about knowing about your past credit behaviour in order to evaluate your willingness and ability to pay. In general, the higher your credit score, the better the interest rate you will get. Lenders are confident that you have a good track record of fulfilling your debt obligations, and you might be able to negotiate a lower interest rate with them.

What are the advantages and disadvantages of a personal loan?

The advantages of a personal loan are:

• They are relatively quick (because they do not require as much documentation as a home or auto loan)
• There is no restriction on how you can spend the money
• Do not require any collateral

Disadvantage:

• High interest rate: The main disadvantage of a personal loan is the higher interest rate, when compared to other loans. Since the lenders do not hold any security, they charge high interest rates to cover their lending risk. Personal loans can work out to be one of the most expensive loans to take in terms of interest payments.