Personal Loan EMI Calculator

Loan Amount

10,000

Rate of Interest (Annual)

5%

Loan Tenure

3 Months

Monthly EMI:

Principal Amount:

Total interest:

Total amount:

What is EMI?

EMI or Equated Monthly Installment is a fixed monthly payment that needs to be made by the loan borrower for the repayment of their home, car, personal, or any other loan. An EMI includes both your principal and the interest component, through which the entire loan amount is paid off within the stipulated number of months or years.

An EMI can be of two types: interest EMI and no-cost EMI. While most loans have interest levied on them like is usual, certain no-cost EMI plans are offered on e-commerce platforms such as Amazon, Flipkart, and Reliance Digital wherein you can purchase a product using EMI plans that have no interest levied on them. In such cases, usually, the retailer and the bank share the interest load as marketing expenses.

How to use BankKaro Personal Loan EMI calculator online?

The online monthly BankKaro Personal Loan EMI calculator is easy to use. You can calculate your EMI and total repayment amount within a few seconds.

  • Use the slider to set the loan amount, rate of interest (annual), and loan tenure.
  • The graph will show the share of interest and principal components in your repayment schedule.
  • The bottom box shows you your monthly EMI amount, principal amount, total interest, and total amount.

Factors affecting your personal loan due amount

Your EMI or Equated Monthly Installment is dependent on a lot of factors including the ones mentioned above. You will need to understand them in detail before applying for any kind of loan.

Rate of interest

The annual interest rate is something that you need to observe carefully before applying for a new loan. Usually, secured loans like home loans and vehicle loans have lower interest rates in the range of 6-10%. On the other hand, unsecured loan interest rates for personal loans could be in the range of 10-25%, and for credit cards, even as high as 45%.

Credit Score

Credit score is extremely crucial for personal loan interest rates, especially because the only party concerned is you as an individual. The only real way for a lender to judge your credit history is by going through your credit score report, which shows your past loan accounts, repayment pattern, and credit utilization.

Debt-to-income ratio

The debt to income ratio is the ratio of all your debt divided by your salary and other income. If this is high, the loan amount will be low and interest rates, higher, given the risk involved of multiple loan accounts.

Relationship with the lender

If you have been operating bank accounts and demat accounts with a bank for few years, maintaining good balances and availing their services regularly, chances are high that your personal loan due amount will be lower as the bank might offer you low interest rates as a goodwill gesture.

What is the Formula to calculate personal loan EMI amount?

BankKaro uses this formula to calculate the total amount and EMI amount for your loan. EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P stands for the loan amount or principal, R is the interest rate per month [if the interest rate per annum is 11%, then the rate of interest will be 11/(12 x 100)], and N is the number of monthly instalments.

  • Total Interest Payment = EMI * tenure in months.
  • Total Amount = EMI amount * No of EMI

Advantages of using BankKaro Personal Loan EMI calculator

There are several advantages of using the BankKaro EMI calculator:

  • It is completely free of cost. BankKaro will never charge you a single rupee for using the EMI calculator, no matter the number of times you use it.
  • You will be able to calculate your EMI amount for your upcoming loan. It is always a good idea to know the amount you will be paying before you get a loan approved.
  • The loan calculator online is completely accurate and reliable.

Apart from personal loan EMI calculator, BankKaro also has a Home Loan EMI calculator, Vehicle Loan EMI calculator, Loan Against Property EMI calculator, and more.

FAQs

How is EMI amount calculated?

The EMI amount on your loan is calculated based on three major factors: Loan Amount – the amount of loan you avail; Rate of Interest – the annual interest rate applicable on your loan; and Loan Tenure – the months and years the loan has been availed for.

What is EMI calculator?

An EMI calculator is a tool that allows you to see your monthly EMI and the total amount to be repaid based on your loan amount, interest rate, and loan tenure.

How does the EMI calculator work?

The EMI calculator works using a simple formula which takes into consideration factors like your loan tenure, loan amount, and interest rate to find out your interest amount and the total amount payable in real time.

What is the use of EMI calculator?

Using the BankKaro monthly EMI calculator, you can know in advance the amount of EMI you will be paying for your personal loan, car loan, home loan, or any other loans. This will allow you to go for an amount and tenure that suits your capability to repay.

How is principal and interest calculated on EMI?

While principal in an EMI is the amount that you borrowed, broken up into equal installments, the interest element depends on the bank and the type of loan.

Are the calculators for home, car, and personal loans the same?

Yes, the calculators for home, car, and personal loans largely work on the same formula that we have implemented in our online EMI calculator.

Is the Equated Monthly Instalment amount shown by the calculator the same as that which the bank will ask me to pay?

Ideally, if the details entered are accurate, the EMI amount shown by the calculator should be the same as what the bank will ask you to pay. However, floating interest rates can change your EMI amount or loan tenure during the repayment period.

Is my loan EMI fixed or can it change over the loan tenure?

In a floating interest plan, the loan EMI can change over the loan tenure. On the other hand, the loan EMI is fixed in a fixed interest plan.

Is it good to pre-close a loan before the end of its tenure?

Preclosure of a loan is usually subject to a penalty charge. Before pre-closing your loan before the end of its tenure, always calculate whether the loan interest payments will be less than or more than the penalty being charged.

What is Floating Rate of Interest?

All loan interest rates are dependent upon the repo rate issued by the Reserve Bank of India. With changing market conditions, this repo rate goes up and down affecting your interest rates. Thus, most loans in the market have a floating rate of interest that goes up and down as market interest rates.

What happens if I fail to make an Equated Monthly Instalment payment?

If you fail to make an Equated Monthly Installment (EMI) payment, the response differs from bank to bank. You might be charged penalties, higher interest rates, or even get a credit default charge.

What happens if I fail to make an Equated Monthly Instalment payment?

If you fail to make an Equated Monthly Installment (EMI) payment, the response differs from bank to bank. You might be charged penalties, higher interest rates, or even get a credit default charge.

What is the EMI for 10 lakhs personal loan?

How is personal loan amount calculated?

BankKaro uses this formula to calculate the total amount and EMI amount for your loan. EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P stands for the loan amount or principal, R is the interest rate per month [if the interest rate per annum is 11%, then the rate of interest will be 11/(12 x 100)], and N is the number of monthly instalments.

  • Total Interest Payment = EMI * tenure in months.
  • Total Amount = EMI amount * No of EMI

Should I Prepay My Personal Loan Early?

Yes, it is a great idea to prepay your personal loan as it reduces the high interest component you need to pay alongside your principal amount.

How to Calculate the Lowest EMI on Your Personal Loan?

The lowest EMI on your personal loan can be calculated by taking into consideration the optimum loan amount, lowest interest rate offered by your preferred lenders, and the preferred loan tenure.

What Happens If You Fail to Pay Your EMI?

The lender charges a penalty in case you fail to pay your EMI in time. In case of further default, the lender will pursue action for non-repayment.

How much personal loan can I get if my salary is 50000?

Usually, lenders follow a 20x multiplier for most personal loans for salaried professionals. With that consideration, your personal loan will be Rs 10 lakhs on a salary of Rs 50,000 per month.

Can I get personal loan with Rs 20000 salary?

With a Rs 20,000 monthly salary, and a 20x multiplier, you should ideally be eligible for a Rs 4 lakh personal loan in India.