How to calculate personal loan EMIs?
  • SUBSCRIBE
  • WHAT TOPICS ARE YOU INTERESTED IN?

    Step 1 of 3

    NEXT Skip

    HOW OFTEN WOULD YOU LIKE UPDATES ?

    Step 2 of 3

    EMAIL ID

    Step 3 of 3

Get The Latest Updates

SUBSCRIBE

How to calculate personal loan EMIs?

  • Highlights

  • Divide all you buy into easy EMIs with Bajaj Finserv

  • EMIs are based on the principal amount, interest rate, and the tenor

  • Use an online EMI calculator to know your EMIs

EMI stands for equated monthly installments that a loan borrower pays the lender throughout the tenor to return the loan. EMIs usually consist of two parts- the principal amount and the interest component.

With a Personal loan, you can divide all your life’s financial goals into easy EMIs with Bajaj Finserv. Be it funding your family wedding or your child’s overseas education, the cost of renovating your home interiors or going for a much-needed vacation to international destinations, a personal loan can be used for all.

Pro tip: With new-age Flexi Personal Loans from Bajaj Finserv you can borrow as and when you need and repay at your inconvenience, at no added cost. Here, you also get to pay just the interest as EMI with an option to pay the principal later. With this facility, you can reduce your EMIs by almost 45%.

Bajaj Finserv also provides pre-approved offers on their various loans and other financial services, that makes availing them much easier and quicker. All you have to do is provide some basic information to get your exclusive pre-approved offer.

Since personal loans are unsecured, their interest rates tend to be higher than those for other loans. That, in turn, makes personal loan EMIs higher.

You can use online personal loan EMI calculators to find the EMI you will have to pay. This way you can budget and plan a proper repayment schedule even before you apply for the loan. The following are the inputs you will need to provide for the calculation:

  1. Principal amount: This is the loan amount that you are planning to borrow. The rate of interest is applied on the principal amount, and then divided into monthly EMIs according to the tenor of the loan.

  2. Interest rate: This is the rate of interest applied on the principal. For unsecured loans they tend to be high. They can also be fixed or floating. If they are floating the EMI may change at a later point in the tenor, but if they are fixed, EMIs too, remain unchanged.

  3. Loan tenor: The loan tenor is the time period to repay the loan. Most lenders offer flexible tenors, and those for personal loans usually range from 1-5 years. The longer the tenor the lower the EMI, and vice versa. However, longer tenors also usually mean a higher interest payout.


Online personal loan EMI calculators first calculate the interest to be applied on the loan and then the EMI itself. The formula used to calculate the EMI is as follows:

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

Here, P is the principal or the amount that is borrowed as a loan, R is the monthly rate of interest levied, N is the tenor of repayment.

As is evident from the formula above, it may not be for everyone to manually calculate the EMI. Therefore, using an online calculator makes things much easier. It will tell you your EMI within seconds, based on which you can assess your repayment ability, and know how much you can actually afford to borrow. Having a clear repayment plan before applying always improves your chances of approval.

Personal Loan Instant Approval

Please enter your first and last name
Please enter 10 digit mobile number
Please enter valid Office Email ID
Please select your employer name from list

How would you rate this article

 Please let us know why?

What did you dislike?

What did you dislike?

What did you like?

What did you like?

What did you like?

Next up

Is it good to apply for personal loan with different banks?

PRODUCT GUIDANCE

It’s good to apply for personal loans with multiple lenders: A Myth or Fact?