How make the best use of Personal loan EMI Calculator?

EMI is known as Equated Monthly Installments. It is the fixed amount of money that borrowers pay every month, on a fixed date to the lender to repay the personal loan taken.

Components of Personal Loan EMI

•   Repayment towards the Principal amount

•   Repayment towards the Interest amount

How does a personal loan EMI calculator work?

Mathematical formula of calculating the EMIs of Personal loan EMIs

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),

  N: Number of monthly installments or loan tenure in months.

Online Formula

Click here

•  Use the slider for selecting the desired loan amount according to your financial need.

•  Fill the interest rate offered by lenders. Do not change the value as per your preference.

•  After choosing the interest rate, make use of the slider to choose the tenure of your loan. Higher is the tenure, lower will be the EMI value.

Benefits of using EMI calculator online

Compare loans: 

Enter a fixed amount, tenure, and interest rate offered of various lenders separately and make a comparison of all the offers to decide which one is more affordable. It is one of the easiest ways of getting a holistic idea of the loan cost. It will help you in getting quick personal loans.

Time saving-

 In less than one minute, you will get to know the monthly EMI cost using the online calculator. It gives 100% accurate results.

Choose the right loan tenure: One of the best ways of choosing the right loan tenure. As based on the tenure, EMI is decided. If you choose higher loan tenure, your monthly EMIs will be less. If you choose longer tenure, your monthly EMI will be less but interest applicable on the principal amount is higher.

Check your repayment schedule:  The personal loan EMI calculator online also gives you a complete break-up of your repayment schedule. It will give you an idea of how much you’ll have to pay as interest and how much will be your principal outstanding.

Verify EMI Information: You can validate the payment schedule offered by various financial institutions using the online 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).

Bottom line

Calculate your loan EMIs with the help of the IndiaLends Personal loan EMI calculator. All required is to enter the tenure, interest rate, processing fee, and preferred loan amount. It is a must to use a financial tool before you file a personal loan application. It will help you get quick loans online.