An online personal loan EMI calculator serves very obvious functions – making it easier for you to plan out your monthly loan installments. The equated monthly installment, after all, is a critical number, determined by your loan amount and your loan tenure. It’s with this perspective that EarlySalary’s personal loan EMI calculator was designed, with the goal of enabling you to instantly calculate your pay-outs and, therefore, plan your loan and repayment better.
How does a personal loan EMI calculator function?
Personal loans feature monthly repayments known as EMIs (equated monthly installments) that cover the entire loan tenure with a fixed repayment tenure. EMI calculator is a tool that helps you calculate your loan EMI based on some fundamental data such as:
- The amount borrowed,
- The interest rate applicable to the loan, and
Factors affecting personal loan EMIs
Some factors play a crucial role in your overall EMI amount payable. These include the following:
- Loan principal – As the thumb rule goes, with tenure and interest rate remaining constant, the higher the amount borrowed as a personal loan, the higher your EMI.
- Interest rate – The higher the interest rate, the higher your individual EMI payout and the total interest payable on your loan.
- Tenure – When a longer term is opted for, individual EMI payments will decrease compared to a shorter period for the same loan. But a longer term also results in higher total interest payable over the loan tenure.
Besides, a lender’s method of interest calculation also affects the EMI payable on a personal loan. The flat balance method of interest calculation involves calculating interest on the principal loan amount throughout the loan tenure. Thus, in such a case, the EMI amount remains unchanged for the entire loan tenure. At the same time, the reducing balance method involves computing interest only on the outstanding loan principal amount for each successive month instead of the entire amount initially borrowed.
As a result, the principal used to calculate interest decreases as the repayment tenure progresses, leading to a decrease in the successive loan EMI. Currently, most banks offer personal loans based on the reducing balance interest calculation method, and the same process is used by EarlySalary’s online personal loan EMI calculator.
Benefits of using a personal loan EMI calculator?
Some benefits that you should have an idea about while using a personal loan EMI calculator are:
Compare loans: Enter a fixed loan amount and tenure to vary the interest rate and processing fee depending on the rates set by the lender. That’ll give you a holistic idea regarding the total cost of your loan, which will then help you choose your personal loan product.
Choose loan term: To see which one is better suited for your financial health, vary loan tenures and compare your EMIs. If you are okay with paying higher EMI and would like to close your loan early, go for a shorter term. Otherwise, you can always opt for a longer term.
Check your repayment schedule: EarlySalary’s loan EMI calculator also gives you a complete break-up of your repayment schedule. That way, you will get an idea of how much you’ll have to pay as interest and how much will be your principal outstanding.
Use the instant cash loan EMI calculator
Skip the manual calculations. With EarlySalary EMI Calculator, you can precisely determine your interest charges, repayment amounts, and more.
Follow this step-by-step guide regarding how to use the calculator:
Step 1. On the EarlySalary personal loan EMI calculator page, input your desired personal loan amount.
Step2. Provide the anticipated personal loan interest rate
Step3. Choose a time period over which you want to repay your loan
On completing these steps, your personal loan EMI will be displayed instantly. You can also view the total interest payable and the total amount owed.
EarlySalary offers instant cash loans of up to Rs 5 lakhs with quick processing and minimal documentation. Offers of interest rates as low as Rs 6/day, this is by far your most compelling option of credit in the market.
Plug your details to determine your monthly repayments based on your sanctioned loan amount and interest rates. It’s that easy to understand. With EarlySalary, you can even prepay your loan amount with no additional charges. Liberate yourself with #OneSmallStep.
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