How To Calculate EMI For A Personal Loan Of Rs. 2 Lakh

Read our detailed guide to know how to calculate monthly instalments for your personal loan.
Personal loan
29 January 2024

Obtaining a personal loan is a common financial strategy for meeting diverse needs, from funding home renovations to covering unexpected medical expenses. However, the key to managing a personal loan responsibly lies in understanding the equated monthly instalments (EMIs) – the fixed monthly payments required for loan repayment.

Understanding EMIs

Calculating EMIs for your personal loan is a complex task and involves lengthy calculations. It involves three key components such as the loan amount that you wish to borrow, repayment tenure and the interest rate to calculate your monthly instalments.

The formula for EMI calculation is:

EMI = [P x R x (1+R)^N] / [(1+R)^N-1]

• P stands for principal loan amount
• R stands for interest rates
• N stands for loan tenure in months

Calculating EMIs manually is time-consuming and might end in giving erroneous results. This is where tools like the personal loan EMI calculator come into play, offering a user-friendly experience to simplify complex financial computations.

What is a personal loan EMI calculator?

A straightforward yet powerful tool, the EMI calculator is employed to estimate your monthly EMI commitment before taking out a loan. With minimal input, including the desired loan amount, preferred tenure, and the interest rate for the personal loan, this calculator swiftly computes your monthly instalment.

How to calculate EMIs for a personal loan

Using an online EMI calculator streamlines the personal loan application process of determining your equated monthly instalments (EMIs). Follow these steps to make the most of this tool:

• Go to the personal loan EMI calculator on our website.
• Input the desired loan amount you plan to borrow.
• Enter the applicable interest rate for the loan.
• Choose the loan tenure that suits your financial situation.

The calculator will generate your EMI, providing a breakdown of the total interest and the overall amount payable. This user-friendly tool offers instant insights into your monthly repayment obligations, helping you make informed decisions about your loan.

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What is the minimum salary for a Rs. 2 lakh personal loan?

The minimum salary requirement for a Rs. 2 lakh personal loan varies among lenders but generally ranges from Rs. 15,000 to Rs. 25,000 per month.

How to get a Rs. 2 lakh loan without salary slip?

You can get a Rs. 2 lakh loan without a salary slip by providing alternate income proofs such as bank statements, income tax returns, or collateral.

What is the monthly interest on Rs. 2 lakh?

The monthly interest on a Rs. 2 lakh loan depends on the loan tenure and interest rate offered by the lender. It's calculated based on the reducing balance method.

How to calculate EMI for Rs. 2 lakh personal loan?

To calculate the EMI for a Rs. 2 lakh personal loan, you can use online EMI calculators available on bank websites or financial portals. Input the loan amount, tenure, and interest rate.