Personal loans also called signature loans are generally given to individuals. These are unsecured loans that help you finance your dreams like buying a home, renovating your current home or paying for an expensive wedding.
- Most banks or NBFCs offer the loan with tenure ranging from five years to ten years with flexible repayment plans. Personal loan interest rate is the interest rate levied on unsecured loans.
- The interest varies with different banks and also changes with time. It is wise to check the prevailing rates of personal loans at various public sector banks before applying.
Thus it is necessary to check EMI’s and for this Money View has come up with an online EMI Calculator through which you can easily calculate your monthly EMI online and plan your loan effectively.
Introduction to EMI Calculator
Table of Contents
The small print on a financial product can often mean a lot of confusion and a lot of questions. The EMI calculator from MoneyView is an easy-to-use tool for consumers, which helps clear up some of the mystery of how Easy it is to get a personal loan from the comfort of your home. The Personal Loan EMI Calculator will help you to determine how much your monthly or quarterly installments would be, the tenure of the loan, and the interest rate charged.
Use this tool to ask about the loan amount, rate of interest, and the total repayment amount. You can calculate your EMI for different mortgage periods using this simple yet highly innovative tool. Just enter the details of your loan including the principal, interest rate, and the tenure of the loan to get your monthly repayment.
Factors that affect EMI :
Before understanding how an EMI calculator works, let’s understand EMI and what are the factors that affect EMI. Apart from it, this makes it necessary for the borrowers as these things can surely affect the amount that has to be paid.
EMI known as equated monthly installment is an important aspect of personal finance, especially in the context of repaying a loan.
- It is inevitable for most people to take loans in their lifetime, even if it is just for buying a car or getting a home loan.
- Although salaries are paid on a regular basis, EMIs are also repaid with certainty, so it is better to be aware of how much one will have to pay every month.
EMI’s make it possible for the borrower to repay the loans easily and without any burden on them.
Factors Affecting EMI
The loan to value ratio, the current interest rates in place, the tenure of the loan, when you enhance your EMI is important when determining your EMIs. But banks do not disclose these terms in their customer agreements. So the factors are
- Amount of the Loan: The total amount of money that has to be paid back, which is known as the principal, will depend on the EMI you opt for. This is because the total amount of money which has to be paid back, will be dependent on the amount borrowed.
- Loan Repayment Tenure: The important thing to realize here is that EMI is calculated according to the tenure of the loan. Approaching a lender with long-term vision, helps you save money on EMI, which can go a long way in making your monthly payments more affordable. This may assist you if you are looking at applying for car loans for bad credit since online car loans are available even with bad credit history.
- Interest Rate of the loan: A borrower is required to pay back the amount as per the terms and conditions as mentioned in the agreement. The credit report plays a vital role in this process. The credit score is very crucial and thus we need to keep our scores high but maintaining your score is possible only with the help of a credit report and with a low interest rate loan.
However, apart from these factors, EMI’s on loan make it easy for the borrowers to get their loan paid. Besides this, the loan should be taken only if the above said factors come into your way.
EMI Calculation Methods
EMIs make it easy for customers to repay loans and with a wide range of bank products, with varied benefits and repayment options, customers can always pick the one that best suits their needs. However, there are two ways to pay a loan through EMI’s. These are:
- For the Flat Balance method, the borrower will calculate the percentage of EMI that is equal to your loan amount divided by your total EMIs.
- Whereas for reducing the balance interest rate method, the borrower will calculate the interest on each outstanding portion of the loan.
- This includes both principal and interest components. The nature of this calculation is not complicated if you are aware of the components, which shall be discussed later.
- Obviously, the higher your loan amount, the higher your EMI payments will be. Hence, it would be ideal to first know the details of every component that goes into EMI calculation before putting money into any loan amount.
However, in some cases there can be an EMI holiday. This occurs when the EMIs are paid upfront at the beginning of the loan tenure. During an EMI holiday, there are no monthly EMI payments. Instead, you make a single large installment to cover the earlier months’ EMIs. The Money View EMI Calculator makes it easy for you to understand these differences.
Working of Money View EMI Calculator
If you are looking for a personal loan in India, you have quite a few options. The typical route is to approach your local bank or financial institution in person. However, if your requirements are not fulfilled by the banks in your area, you could consider an online option. Online lenders offer loans against major currencies for Indian citizens both in India and abroad.
Though, if you want to check the EMI, then Money View personal EMI calculator can help you in it. However, this EMI Calculator has some steps to follow which makes it suitable for all. These steps ensure that you don’t have any problem in calculating the EMI’s for your personal loan.
Steps to Follow:
- Enter the amount of the loan that you have to borrow. However, for your convenience, we have added a slider in which you can slide it to the exact amount.
- After getting the slider to the required amount, enter the rate of interest that has been charged by the organization to you. For this also, a slider can be used by you.
- Now, just choose the repayment tenure by entering the months to the EMI Calculator.
After entering all this, the EMI amount will be shown to you on your screen and you can pay it accordingly.
Formula Used to Calculate EMI
Every month of your loan, you have to pay some amount of interest. The larger the loan is, the more interest you have to pay. A loan’s EMI (equated monthly installment) is the amount of money you pay each month towards your loan. It is calculated using a special formula.
The Formula to calculate the loan is
P x R x (1+R)^N / [(1+R)^N-1]
P = Principal amount that is taken from the organisation.
R = Rate of interest taken by the organisation
N = Tenure in number of months
EMIs are calculated on the assumption that the loan remains outstanding for the entire month. Refinancing or prepaying the loan does not alter this calculation, even though it may affect the individual instalments.
Features of EMI Calculator
Installation of the MoneyView Personal Loan EMI Calculator is quite simple since it does not require any special expertise or attention. It can be easily installed by anyone right from an individual to a company without any difficulty. The use of this calculator is also easy even for the non-technical person. The user interface of this product is user friendly and so does not require any special knowledge.
- This is an EMI calculator which allows you to calculate the monthly payment of your personal loan.
- Apart from the principal amount, it also displays various other facets of your loan such as interest rate, term period and more.
- Thus, using this calculator is easy and simple, making it a wonderful tool to help individuals manage their finances in an efficient manner.
The MoneyView Personal Loan EMI Calculator brings to the fore ‘the EMI Problem.’ Many people plan to take a personal loan, but end up postponing it for one reason or the other. Some of them may be unaware of how much they will be paying in total after disbursing monthly EMIs for a particular period of time until they use this calculator.
Ready to start calculating your monthly installment? With Money View Personal Loan EMI Calculator, you can figure out your monthly period for repaying the EMIs along with an easy breakup of the principal and interest components.