Calculate your Personal Loan EMI & Total Interest Due
Monthly amount paid to your Personal Loan provider
Your debt repayment schedule in regular instalments over a period of time.
|Year||Principal Paid(A)||Interest Paid(B)||Total Payment (A+B)||Outstanding Loan Balance||Pre-payment|
While addressing the press this morning, the RBI Governor Shaktikanta Das has announced the extension of the moratorium period by another 3 months.
The first moratorium was announced on the 27th of March 2020, soon after the announcement of Lockdown 1.0. In light of the recent advancements and the economic condition of the country, the central bank of India has decided to extend the moratorium period by 3 more months starting 1 June 2020 and ending 31 August 2020. This decision has been taken as a result of the lockdown extension, which is currently in its 4th extension. The moratorium, as announced earlier, can be availed for the deferment of payments towards term loans. It is applicable to credit card bill payments as well.
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|
The online personal loan EMI calculator allows you to calculate approximately how much you will have to pay as the Equated Monthly Instalment (EMI).
The "EMI calculator displays" the EMI to be paid, along with a detailed repayment table with a break-up of total amount payable (Loan Amount + Interest Payable + Processing Fee) for the tenure.
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.
Parts of the EMI Calculator
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.
When you decide to take a personal loan, one of the most valuable tools you will ever use with reference to this loan is the Personal loan calculator. Unlike home or car loans, a personal loan can be one of the most convenient sources of funds since it does not come with any conditions attached to it regarding how the money is used. However, there are a lot of things that need to be taken into consideration when deciding on the ideal amount to borrow. Customers should consider:
Additionally, the borrower should also take into account which lender he or she should approach for the loan - a bank or a non-banking financing company (NBFC). The personal loan EMI calculator can help you make these decisions.
You have to enter the yearly interest rate in the online EMI calculator to get the precise EMI amount.
With the BankBazaar EMI calculator, you can calculate your EMI in as little as 30 seconds of your time.
In case the lender you are getting your loan from charges a flat amount as processing fee, you can still calculate your EMI by placing the value of Processing Fee as 0% in the calculator. But do remember that you have to pay the processing fee at the end of the day.
You can calculate EMIs for a loan quantum of upto Rs.30 lakh in the BankBazaar personal loan EMI calculator.
Yes, personal loan, like all other loans is a service that the bank provides. Thus, the EMI amount you pay will be subjected to Goods and Services Tax (GST).
|Personal Loan EMI Calculator Related Articles|
|Simple ways to Reduce your EMI||Fixed vs Floating Interest Rate||Method of EMI Calculation on Excel|
|Top Banks Providing EMI Calculators||Reducing Balance Loan Calculator||How to use Balance Transfer to Trim EMI|
|Monetary Policy||How to Plan Monthly EMIs||Relationship between Repo Rate and EMI|
Muthoot Finance Ltd is a company based in Kerala that offers a number of financial services. The company is now planning to expand the personal loan operations of the company to more than 50 locations across different parts of the country by the end of the year. Muthoot Finance entered the personal loan segment last year and is now working hard to expand operations across the country. The latest target of the company is personal loan category for salaried professionals in Delhi and the National Capital Region. Such personal loans are currently offered in 16 cities by Muthoot Finance. This is a very unique offer and will be benefiting a number of salaried individuals. The loan can be availed and will be disbursed by the bank before the completion of 48 hours from the time the loan was availed. The company is hopeful that they will be able to expand their customer base across different categories by the end of FY21. The company is targeting a Rs.750 crore book target for the upcoming financial year. The company will be availing loans for any amounts ranging from Rs.1 lakh to Rs.10 lakh at an interest rate ranging between 13.5% and 23% per year.
GST of 18% is applicable on all banking products and services from July 1, 2017 onwards