A personal loan EMI calculator is an effective tool used to calculate the monthly amounts you need to pay to the financial institution. To calculate the EMI amount you need to pay each month, you need to use the given sliders on the tool. You can adjust each of the values on the slider, which include
– Principle amount (P)
– Time and tenure (N)
– Rate of interest (R)
How Does a Personal Loan EMI Calculator Work?
Getting personal loans from Fullerton India is a simple part of the borrowing journey. But paying back the amount is where the challenge lies. If you choose a shorter tenure with a higher EMI amount, it could put a strain on your monthly budget and you may have to compromise on your lifestyle. On the other hand, if you choose a longer tenure with a smaller EMI, you may end up paying back much more in the form of interest and other charges without getting any benefits in return. Using a personal loan EMI calculator is an efficient way to find out the optimal tenure to select so that you can plan your finances accordingly.
Here’s how the Fullerton India personal loan EMI calculator works:
- Select the amount you are borrowing, which is your principal amount.
- Select the slider to the interest rate you are required to pay.
- Select the tenure for your loan that you wish to implement.
- According to the values you have adjusted for, the EMI calculator will show you the total interest payable, the total amount payable, and the EMI you must pay each month.
- If you wish to see how your EMI fares with a shorter tenure or a lower interest rate, all you need to do is adjust the values accordingly.
- The payable EMI and its breakup is calculated instantly when you adjust the sliders.
What is a Personal Loan EMI?
There are many reasons why people take personal loans. These are unsecured loans that don’t require any collateral. You can take up a personal loan for home renovation, marriage expenses, family vacations, medical emergencies, or any situation where you require immediate cash.
If you have know the above fundamentals of cash advance, all you need to do to get fax less payday loan to get easy access to cash is to apply them to your application and get the cash you need as fast as possible. You can get cash transferred to your account in the next 1 hour if you follow the above principles. When searching for multiple varieties of loans if you have bad credit, you can get more info by simply visiting the site of PaydayLoansUK and choosing the suitable loan according to the situation of your credit.An equated monthly installment (or EMI) is the amount that you need to pay the lending institution each month as you start repaying the lump-sum personal loan amount that you borrowed. The two primary components of a personal loan EMI are the principal amount and the interest charges levied on the outstanding principal amount. Depending on your terms with the lender, your EMI may also include other components such as insurance.
How Do Financial Institutions Calculate Personal Loan EMI Amounts?
While lending personal loans, banks use specific formulae to determine how much they will get back on a principal amount they give. It takes into account the interest rate applied and the tenure of the loan. You can use the amount you need to pay each month using the same formula.
In an equation where P stands for Principal, R represents Rate of Interest and N is the tenure or number of total months assigned for the repayment of your loan,
EMI Value = [P x R x (1+R)^N]/[(1+R)^N-1]
Since an EMI is paid per month, the loan tenure and number of installments are calculated monthly.
Consider that you borrow Rs.10 lakh from your bank as a personal loan. You are charged an interest rate of 15% and a loan tenure of 2 years. In this case,
P = Rs.10,00,000
R = 15
N = 24 (2 years = 24 months)
Therefore, your EMI can be calculated as
EMI = [10,00,000 x 15/100/12 x (1+15/100/12)^24] / [(1+15/100/12)^24-1]
EMI = Rs 48,487.
https://www.scoopearth.com/digital-marketing/Benefits of Using Fullerton India’s Personal Loan EMI Calculator:
- Using an EMI calculator is the best way to understand your data and repayment options with no ambiguity and figures easy to understand.
- You can compare the loan options from a series of financial institutions and choose the right one based on your income, payment capacity, and financial status.
- A personal loan EMI calculator can make multiple large calculations in a few seconds.
- It helps you understand how much you can repay so that you don’t enter a vicious debt trap.
If you are ready to borrow a personal loan for any purpose, get in touch with the team at Fullerton India today.
