Learn how to calculate EMI on Personal Loan instantly.
A Personal Loan is a type of financial aid that helps you meet your various financial needs. Whether you need to pay for medical treatments, plan celebrations, or support loved ones financially, a Personal Loan can be helpful. You can repay Personal Loan in Equated Monthly Instalments or EMIs and compute the EMI amount even before applying for the loan. Let us find out how to calculate Personal Loan EMI.
The formula to manually calculate Personal Loan EMIs is as under:
EMI = P × r × (1 + r)n/((1 + r)n - 1)
'p' is the Loan amount,
'r' is the interest rate,
'n' is the repayment tenure (in months).
The EMI amount of the loan directly proportional to the loan amount and interest rate and inversely proportional to the loan tenure. Thus, the more the loan amount and interest rate, the higher your EMI will be. On the other hand, a longer tenure will lead to lowered EMI.
While you can calculate the EMI for Personal Loans manually, such a calculation can be error-filled. As such, you can also use Personal Loan EMI calculators to compute the EMI payable.
Using an online EMI calculator, you can follow the below steps on how to calculate Personal Loan EMI.
Once you enter these figures, the EMI calculator will automatically compute the payable EMI amount.
To understand the loan and EMIs in greater detail, you can refer to an Amortisation Schedule. This schedule is essentially a tabular representation that comprehensively breaks down your Personal Loan componets i.e.,the principal loan amount and interest payable on each EMI. Plus, you can use it to understand how much of the loan amount has been paid and the outstanding payments. You can refer to it for details like the interest rate, the principal payment, and the outstanding loan in this table. If you want to opt for foreclosure or refinancing, the Amortisation Schedule can be of assistance.
Now that you know how to calculate EMI for Personal Loan, you can apply for one. You can also use the digibank Personal Loan EMI calculator by clicking here. digibank offers competitive interest rates, with repayment tenures lasting up to 5 years. You can send your Personal Loan application online to digibank and get faster loan disbursals.
Download the digibank mobile app on your smartphone. Launch the app and click on the "Get Personal Loan" link on the login page. Also, you can open bank account online with us.
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.