How You Can Use a Personal Loan Calculator

You can take personal loan to meet your personal expenses such as home renovation, medical emergency, gifts and vacations. The debts are repaid as EMIs.

EMIs consist of both the principal and the interest component. In interest-only loan facility, the EMIs consist of only the interest component. The principal is paid at the end of the loan tenor.

Additional Read : Minimum CIBIL Score for Personal Loan

What is Personal Loan EMI Calculator?

EMI calculator helps you to calculate EMIs for the loan that you wish to borrow. You need to feed the loan amount, tenor and the interest rate to know the applicable EMIs. It lets you decide a suitable tenor based on your repayment capacity. Bajaj Finserv EMI Calculator not only indicates the loan EMI, but also calculate the total interest payable and the total payment.

Personal loan EMI calculator is indicative in nature. The actual interest rate and the EMIs will be decided by the lender based on your repaying capability and the credit score.

The formula used to calculate the EMIs is:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1],
P is the principal or the loan amount you wish to borrow
R is the rate of interest that is levied on the loan amount
N is the tenor of repayment of the loan or the number of monthly instalments that you will pay

EMI calculator is easy to use. It helps you to plan your investments as per your expenses.

Scenarios

You can use the EMI calculator to adjust the EMI to the one which you wish to pay.

Illustration:

Suppose you need Rs. 1 lakh, which you wish to pay over a year. At the rate of interest 14%, and tenor of 12 months:

1. The total interest payable is Rs. 7,746, and
2. EMI is Rs. 8,979

Suppose you want to pay EMI of less than Rs. 5000, for a loan amount of Rs. 1 lakh, then you can change the tenor. For a tenor of 24 months

1. The total interest payable is Rs. 15,233
2. EMI is Rs. 4,801

For the same ROI and the loan amount, a longer tenor reduces your EMI, but increases your total interest payable.

Personal loan EMI calculator helps you know your EMIs and map them to your expenses and payment capability.