After facing the brunt of the Covid-19 situation, the demand for personal loans has increased in a couple of years. People from different income groups have suffered financial losses during the lockdown phase. Many on-field workers were seized from their jobs which caused severe financial adversities.
During such times,
personal loans have proved to be a universal financial solution to cope up with different expenses related to home, education, health, business, etc. Technological advancement in the software domain encouraged many instant loan apps to come forward to support instant personal loans with easy-to-pay EMIs.
EMI Calculation is an essential process before availing of a personal loan. The in-built EMI calculator in the loan app enables EMI calculation in seconds with 100% accuracy that otherwise lacks in manual EMI calculations. You should always calculate the EMI on the desired loan amount, considering the tenure and prevailing interest rate that varies from lender to lender.
EMI formula for a personal loan
The mathematical formula to calculate EMI is EMI = P x r x (1+r)n/(1+r)n-1) where P stands for the principal loan amount, r=interest rate, n=tenure in the number of months.
Lenders use various mathematical formulas to determine EMI amounts for loan repayment. As a result, EMI amount varies based on principal, interest rate, tenure of payment, and the method of calculating interest.
Different methods for EMI calculation
Manual Personal loan EMI calculation
With an online personal loan calculator, the manual form of calculation is almost eliminated, and lenders prefer calculating via loan EMI calculators or with the help of Microsoft Excel formulas. Still, borrowers who are confident with math/accounts formulas mostly prefer calculating EMI manually. The general calculation of personal loan EMI is
EMI = [PXRX(1+R)N]/[(1+R)(1-N)]
But errors in the calculation are likely while calculating manually. So, borrowers and lenders may prefer automated analysis like the personal loan EMI calculator or Microsoft excel.
Microsoft Excel EMI calculation
Excel provides an easy and simple method for calculating personal loan EMI. The excel formula that stands for EMI is:
PMT: It stands for payment and gives periodic loan payment or EMI value as an output.
Automated Loan EMI Calculator
The quickest EMI calculation can be done with the help of an automated loan EMI calculator available in the instant personal loan app. It gives accurate readings for your monthly instalments. There is no scope for errors to occur.
While applying for a personal loan, you may come across the loan EMI calculator, where you need to select the principal loan amount, tenure, and interest rate to derive an EMI. These fields are flexible and open to change till borrowers don’t get a suitable EMI that fits the monthly budget.
With several cash loan apps available online, one such user-friendly financial platform is HeroFinCorp instant personal loan app. It was launched by Hero FinCorp, a renowned financial services company in India that offers a loan amount of up to Rs.3,00,000. It is considered one of the best instant cash loan apps of recent times, providing instant loans with easily calculated EMIs.
Let’s study how the HeroFinCorp loan EMI calculator works.
HeroFinCorp personal loan EMI calculator
For getting an instant personal loan, you need to analyse your creditworthiness for repaying the monthly EMI and plan your loan amount. The HeroFinCorp instant cash loan app has a built-in loan EMI calculator for assessing your monthly EMI on the principal amount applied. So before applying for the loan, calculate your EMI on the loan EMI calculator in the following ways:
- Enter the desired loan amount you want. For example, Rs.70,000
- Next, select the EMI you can repay with a maximum tenure of 24 months. So, if the tenure selected is 18 months, the monthly equated EMI you would repay is Rs.3,737 at a 25%* interest rate per annum.
- The tenure will automatically change as you change your EMI.
- Finally, you can select the desired loan amount and monthly EMI at your convenience.
Thus, the HeroFinCorp Emi calculator enables a simple pattern to plan your loan amount according to your ability to repay the loan within the expected tenure. The automated loan EMI calculation method is the reason why borrowers proceed with submitting instant loan applications quickly.
