Personal Loan EMI Calculator
Calculate your Personal Loan amount and EMIs
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What is Personal Loan EMI?
How to Calculate Personal Loan EMI?
It is better to use the personal loan EMI calculator to avoid the hassles of calculations and the risk of calculation errors. The EMI calculator is an easy to use online tool.
Most EMI calculators use the following formula to calculate the EMI:
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
In the above formula:
P is the principal amount
R is the interest rate levied by the lender
N is the loan tenure or the number of months for which you must pay the EMIs
How to use the Personal Loan EMI Calculator?
The tool typically has a simple interface, and it is quite self-explanatory; you don’t need any technical expertise to use it. You must enter the values in the relevant sections, including loan amount, the duration for which you wish to avail the credit, and the interest rate. The tool will automatically do the calculation and show you the applicable EMI.
You can change the value of the inputs multiple times and try different combinations without any restrictions. The tool is free to use, and it is available 24x7.
Benefits of Using Personal Loan EMI Calculator
- The personal loan EMI calculator allows you to do the complex EMI calculation within seconds and thereby help you save time, which you can use for other productive purposes.
- It helps eliminate the inaccuracy in the calculation that may occur when you manually calculate the EMI.
- It allows you to plan your repayment well in advance by providing accurate loan-related information, including the amortization table.
What Are the Documents Required for Personal Loan?
Documents required for Salaried professionals
- Proof of Identity (Aadhaar card, passport, driving license, voter ID)
- Proof of Residence (Passport, ration card, utility bill, Aadhaar card)
- Proof of Income (last three months’ salary slip and bank account statement that reflects your salary)
- PAN (Permanent Account Number) Card
- Passport-size photographs
- Duly filled application form
Documents required for self-employed individuals
- Proof of identity (same as above)
- Proof of residence (same as above)
- Proof of income (audited copy of the profit and loss account and balance sheet for the last two years)
- Proof of business continuity
- Copy of the license/certification/business registration
- Bank account statement for the last six months (both personal savings account and current account)
Eligibility Criteria for Personal Loan
The credit score reflects your repayment capacity and your past repayment records. Typically, the lenders in India require personal loan applicants to have a minimum credit score of 700. If you have a higher score, you have better chances of getting your loan approved, and you may also apply for a higher amount.
The lenders in India assess the employment history of personal applicants to determine income stability. If you are employed with a reputed corporate or a government organisation or are self-employed professionals like doctor, architect, or chartered accountant, lenders may perceive you as a safe borrower, and you have better chances of getting the loan approved.
Most lenders in India require personal loan applicants to be at least 18 years and maximum of 60 years. While younger applicants have better chances of getting a higher amount, the lenders have a limitation of the maximum amount they can grant for people more than 50 years.
Income is an important factor that the lenders consider while approving personal loans as it reflects their repayment capacity. Generally, the lenders require salaried professionals to have a minimum salary of Rs. 15,000 per month (this is subject to change based on the loan amount you apply for). For self-employed individuals, the minimum annual income must be Rs. 5 lakhs or more.
Personal Interest Rate
While the interest rate varies from lender to lender, it usually ranges between 9.20% to 15% or more. Since personal loans are unsecured, the interest rate is higher than secured loan options like a gold loan for LAP (loan against property) where you pledge a collateral against the amount you borrow.
Personal Loan EMI Calculator FAQs (Frequently Asked Questions)
Why Choose Personal Loan?
A personal loan can be taken for multiple purposes. It can be a great option in case a person needs to pay for a financial emergency or fund a big-ticket expense. Furthermore, the documentation process doesn’t require a lot of effort. Also, loan disbursement can be done quickly.
What Will Happen If Personal Loan EMI is not paid?
Your loan tenure will increase if you don’t pay your EMI. Also, if you default on EMI payments, then late payment charges will be levied on you.
Which is Better Personal Loan or Credit Card EMI?
Typically, the interest rate of a personal loan is lower than a credit card. Furthermore, the borrowing limit of a personal loan is based on the borrower’s proof of income, and the bank predetermines a credit card’s limit.
How do I Apply for a Personal Loan?
Fill the online application form with the required details and the loan amount. You would get a call from the representative within 24 hours.
How Do I Pay My EMIs?
EMIs will be deducted from your bank account every month.
What Tenure are Allowed for the Loan?
The maximum tenure can range from 1 years to 5 years or 12 to 60 months.
DisclaimerThe information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.