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|
The table below provides you the loan repayment schedule for a loan amount of Rs.4 lakh, tenure of 3 years, interest rate of 15% p.a. and processing fee of 2%.
|Loan Amount||Rs. 4,00,000|
|Total Interest Due||Rs. 69,590|
|Processing Fee||Rs. 8,000|
|Total Amount Payable||Rs.4,77,590|
In the above example, if you make a prepayment of Rs.50,000 after paying 4 EMIs:
You will Save Rs.29,591 in total loan amount, Loan tenure will be reduced by 5 months
Interest: Rs. 99,181
EMI tenure: 3 years
Interest: Rs. 69,590
EMI tenure: 2 years 7 months
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.
“Your Monthly Personal Loan EMI” will then be displayed below. Click on the plus sign to see the details. To see the complete repayment table, click on the plus sign below “Your repayment Details”.
The elements of an 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.
E = [P x R x (1+R)^N]/[(1+R)^N - 1]
E is the actual EMI that you will have to pay
P: Loan amount you wish to borrow
R: Monthly Interest Rate applied
N: Loan Tenure considered in months
Ms. Shah wished to borrow Rs.1 lakh to pay for her child’s admission to school. She approached a bank that was willing to offer the Loan amount at a 12% p.a. rate of interest with a loan tenure of 24 months. The EMI payable by her can be calculated as given below:
First, let’s convert the yearly interest rate to monthly interest rate:
R = Interest rate/Number of months in a year x 100
R = 12/12 x 100
Therefore, R = 0.01%
Now, applying the personal loan EMI formula mentioned earlier,
E = [1,00,000 x 0.01 x (1+0.01)^24]/[(1+0.01)^24-1]
E = 1,000 x (1.01)^24/(1.01)^24-1
E = 1,000 x 1.26973464853/1.26973464853-1
E = 1269.73464853/0.26973464853
E = 4707.34
Therefore, the EMI payable by Ms. Shah for the loan is Rs.4,707.
The formula that you need to input in excel is: = PMT (rate,nper,pv)
For Example: Let us assume the annual rate of your personal loan is 12% p.a., Then, the monthly rate will be: 12%/12 = 1% or 0.01.
Let us also assume that your Loan Tenure is 4 years. Therefore, the period number or the number of EMIs you have to pay over the course of loan tenure will be (4 x 12). Assuming your loan value is Rs.4.45 lakh, we get the EMI as:
= PMT (0.12/12, 4*12, 4,45,000) = Rs.11,718
If you’re looking to reduce the EMI amount you have to pay towards your personal loan, here are a few tips:
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 EMI 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).
What Is EMI And How Is It Computed?
Now, anybody can take a loan and repay it conveniently without any struggle due to the existence of EMIs. An equated monthly installment (EMI) is a certain amount of funds that has to be repaid every month in order to clear a loan. These EMIs will be paid over a fixed period until the loan is cleared fully. An EMI is determined by the interest rate, loan amount, and loan tenure. Click here to know all about EMIs and the computation process! Calculating EMIs manually can be very taxing and can also result in errors. Compute your personal loan EMIs with this finance tool
Longer Tenure or Higher EMI for Personal Loans?
Are you confused if you should go for a shorter personal loan tenure with high EMIs or a longer tenure with low EMIs? Well, with a few basics about how a personal loan, you can make your decision. Your EMI depends on your loan period and loan tenure along with the interest rate. When you go for a longer tenure, you will definitely end up paying higher interest on your overall loan. The interest rates for longer tenures are higher than the rates for shorter tenures. Your overall interest will be high since you are paying for a longer period. But your EMIs will be low. Learn how to choose your loan tenure and you can also learn to reduce your EMIs
How EMI breakups are done in a Personal Loans?
Paying a personal loan through EMIs is pretty easy. However, it is very important to know the basics of an EMI before you start paying it. An equal monthly installment (EMI) is the amount that you pay on a monthly basis to repay your loan. A personal loan EMI comprises principal amount and interest amount. The interest rate allotted for your personal loan will be distributed throughout your loan tenure. During the initial period of your loan tenure, your interest amount will be very high in your EMI. As your tenure comes to an end gradually, your principal amount will be higher. Check out the advanced Personal Loan EMI Calculator to compute EMIs in a jiffy. Find out more about EMI breakups
|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.
27 May 2019
GST of 18% is applicable on all banking products and services from July 1, 2017 onwards