Calculate your personal loan EMI with the help of BankBazaar Personal Loan EMI Calculator. All you need to do is enter your preferred loan amount, tenure, interest rate, and processing fee (if applicable) and hit "Calculate" to check your monthly instalments.
Monthly amount paid to your Personal Loan provider
Your debt repayment schedule in regular instalments over a period of time.
|Year||Principal Paid(A)1||Interest Paid(B)||Total Payment (A+B)||Outstanding Loan Balance||Pre-payment|
The table below provides you the loan repayment schedule for a loan amount of Rs.1 lakh, tenure of 5 years, interest rate of 9% p.a. and processing fee of 2%.
|Year||Principal||Interest||Total Payment||Total Balance|
|Loan Amount||Rs. 1,00,000|
|Total Interest Due||Rs.24,550|
|Total Amount Payable||Rs.1,26,550|
|Bank||Lowest EMI Per Lakh||Loan Tenure|
|HDFC Bank||Rs.2,162||5 years|
|Axis Bank||Rs.2,224||5 years|
|Indian Overseas Bank||Rs.2,199||5 years|
|Standard Chartered Bank||Rs.2,199||5 years|
|Kotak Mahindra||Rs.2,162||5 years|
|Indian Bank||Rs.1,619||7 years|
|Union Bank of India||Rs.2,071||5 years|
|Karnataka Bank||Rs.2,224||5 years|
BankBazaar Personal Loan EMI Calculator is extremely easy to use and user-friendly. All you need to do is put your preferred loan amount, the interest rate, processing fee, and tenure. Hit “Calculate” to check your EMI. You can also view a detailed breakup of your payment schedule through an amortisation table.
Your personal loan EMI depends on various factors, including the loan amount, interest rate, and tenure. It’s essential to calculate your monthly instalment beforehand so that you can manage your finances in a better way.
Features of EMI Calculator
The elements of a repayment table are:
The repayment table provides year-wise and month-wise data. So, you can look at the details for each month as well as the cumulative data for each year.
When you approach a financial institution in order to take a personal loan, the main piece of information you are looking for is the interest rate that is being offered. Once you know it, and before you start using it to calculate the EMI, you need to convert the rate into a monthly one since the interest rate is always presented as an annual rate. To do so, the following formula is used.
Monthly Interest Rate = Interest Rate/12
For Example, if the interest rate offered to you for your personal loan is 18% p.a. then your monthly interest rate will be calculated as follow:
18/12 = 1.5
This means that the monthly rate of interest will be 1.5%.
When a borrower pays their personal loan off in entirety or partially before the payment is due, it is known as prepayment of loan. Even though prepayment may provide peace of mind to the borrower, it might not be financially beneficial. You should consider the following 2 factors when planning to make prepayments on your loan:
1. Prepayment Charge:Most banks charge a penalty or prepayment fee when you try to pay off your loan earlier. Prepayment fee varies from bank to bank. It can be a percentage of the amount being paid or a flat fee. It can also be calculated based on the overdue interest amount. Some banks might not even charge any prepayment fee at all.
It is important to compare the penalty fee you incur to your savings on interest charges for the remainder of your loan period. This will help you determine whether prepaying your loan will be beneficial or not. Most loans come with a minimum lock-in period, during which you cannot prepay or foreclose your loan.
2. Savings on the Principal Amount:Prepaying early into your tenure can help you save a lot. However, due to lock-in period, it might not be possible to do so. Borrowers often think that since they have already paid many EMIs, the interest on the remaining ones will be low. Therefore, it would be useless to close the loan since there won’t be much saving on the remaining cost of interest.
However, interest paid on the unpaid principal amount remains the same as banks calculate interest on reducing balance basis. Rather than making your decision based only on the remaining tenure, factor in the interest rate charged when thinking about foreclosing your loan.
You can choose to make partial prepayment instead of foreclosing the loan. Partial prepayment reduces the principal amount remaining, thus reducing the interest part of the EMIs. However, you need to pay off a substantial amount of the loan for this method to be effective. Also, it is better to do so as early on in the loan period as possible. Otherwise, prepayment fee might surpass interest savings.
Here’s some of the benefits of using a personal loan EMI calculator.
Compare loans: Enter a fixed loan amount and tenure and vary the interest rate and processing fee depending on the rates fixed by the concerned bank. That’ll give you a holistic idea regarding total cost of your loan and based on that you can choose your personal loan product.
Saves time: Calculating EMI takes less than a minute when you are using a calculator. Also, EMI calculators are extremely easy-to-use and 100% accurate.
Choose your preferred loan tenure: Vary loan tenures and compare your EMI to see which one is better suited for your financial health. If you are okay with paying higher EMI and would like to close your loan early, go for a shorter tenure. Otherwise you can always opt for a longer tenure.
Check your repayment schedule: BankBazaar’s personal loan EMI calculator also gives you a complete break-up of your repayment schedule. That way you will get an idea how much you’ll have to pay as interest and how much will be your principal outstanding.
Verify EMI information: You can validate your repayment schedule as offered by the bank by using an EMI calculator. Other than that, with a calculator you can also calculate the processing fee that you have to pay upfront (usually deducted from the sanctioned amount).
The mathematical formula for calculating EMIs is EMI = [P x R x (1+R)^N]/[(1+R)^N-1] where E: Equated Monthly Instalment,
P: Principal or loan amount,
R: Interest rate per month (the annual interest rate is divided by 12 to get the monthly interest rate), and
N: Number of monthly instalments or loan tenure in months.
In a new directive announced by the Reserve Bank of India (RBI), it was announced that banks can help restructure the personal loans of those borrowers who are finding difficult to repay the EMI on time due to the financial crunch caused by Covid19.
The bank can restructure the personal loan by lowering the rate of interest, rescheduling the payment of EMI, or allow the individual to avail a limited loan repayment holiday.
The restructuring window will be available till 31st December 2020. This will help the borrower gain more time to repay their loan. The loan account will not be deemed as a non-performing asset (NPA) and the credit score of the borrower will not have any negative impact. However, borrowers who have been paying their EMIs regularly and were not overdue by more than 30 days as of 1st March, 2020 are eligible to avail the personal loan restructuring facility.
If you are referring to prepayment or foreclosure, yes you can do that. However, different banks have different conditions for personal loan prepayment. For instance, HDFC allows you to prepay only if you have completed 12 EMIs. Also, a certain prepayment charge may be levied depending on the bank at the time of pre-payment or foreclosure. So, read your lender’s terms and conditions before opting for foreclosure or prepayment.
It’s always advised to pay your EMIs on time. Most banks charge a penalty fee of 2% on your EMI if you fail to make repayments. Also, any missed payment will hurt your credit score and may jeopardise your chances of getting a loan in the future. Use a personal loan EMI calculator and calculate your EMI beforehand to avoid any financial stress.
In order to calculate lowest EMI, you need to consider your preferred loan amount, the lowest rate offered by the concerned bank, and the maximum tenure. Enter these details while calculating and you will get the lowest EMI applicable on your loan. However, for long-term loans, you pay more towards interest though your monthly repayments are smaller when compared to short-term loans. For short-term loans, the situation is reversed, which means you pay less towards interest though your monthly repayment amount is higher than loans with longer tenures.
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GST of 18% is applicable on all banking products and services from July 1, 2017 onwards
Tushar Mehta, the Solicitor General has told the Supreme Court recently that the moratorium period for the repayment of loans can be extended to as much as 2 years. This comes up following circular from the Reserve Bank of India (RBI).
The SC had held the Central Government for not coming up with an affidavit with respect to the decision of waiving off the interest for the moratorium period. This was the update of 26 August 2020. However, the Centre has clarified that the position of the same has been placed under the Disaster Management Act or DMA by filing an affidavit.
1 September 2020