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How a Personal Loan EMI Calculator Works
Posted on Monday, February 6th, 2023 | By IndusInd Bank
A simple tool, the personal loan EMI calculator primarily helps you find out how much EMI you would have to pay every month. Take the help of this calculator before applying for an instant personal loan from IndusInd Bank.
The personal loan has arguably become one of the most popular types of loan today. This is chiefly because a personal loan is an unsecured loan that does not call for any collateral and can easily be repaid through equated monthly installments (EMI). Moreover, with no end-use restriction, the funds from a personal loan can be used for any personal expense, such as paying for a medical emergency, sponsoring a child’s education, funding one’s home renovation, or going on vacation. Most importantly, a personal loan is typically processed faster than other loans, allowing borrowers timely access to funds.
Some of the key factors you should keep in mind before availing a personal loan are the loan amount, the rate of interest, the repayment tenure, and your own repayment capacity. As a matter of fact, it is always better to have an estimate of your personal loan EMI amount in advance. This is where a personal loan EMI calculator comes in useful.
What is a Personal Loan EMI Calculator & Why should you Use It?
A personal loan EMI calculator is essentially a tool that is used to calculate the amount that has to be repaid every month. The primary benefits of this easy-to-use online tool are as follows:
- Facilitates better decision-making by allowing you to change the loan amount and tenure multiple times and figuring out what EMI suits you best
- Ensures accurate results and saves time
- Helps you plan your monthly budget, keeping the expected EMI in mind
How does a Personal Loan EMI Calculator Work?
A Personal Loan EMI calculator consists of a formula box with three blank spaces for loan amount, rate of interest, and loan tenure. Once you fill in the details, the calculator will instantly show you the EMI amount to be paid to the bank or credit institution every month.
The mathematical formula for calculating the EMI is:
EMI amount = [P x R x (1+R) ^N]/ [(1+R) ^N-1]
Wherein:
“P” stands for Principal Loan Amount
“R” stands for Rate of Interest every month
“N” stands for Loan Tenure in months
IndusInd Bank Personal Loan EMI Calculator
One of India’s leading personal loan providers, IndusInd Bank offers instant personal loans at attractive interest rates and flexible tenures – ranging from 12 to 48 months – to borrowers. Additionally, with no physical documentation, a 100% paperless simple four-step online application process, swift processing, and speedy disbursal, this is a hassle-free way to obtain instant funds.
Before you apply for a personal loan, you could make use of IndusInd Bank’s personal loan EMI calculator to find out your EMI amount in advance. Depending on your comfort and financial ability, you could choose between higher EMI payments over a shorter loan term or lower EMI payments spread over a longer loan tenure.
Apply for a personal loan from IndusInd Bank today!
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
