Personal Loan EMI Calculator

What is a Personal Loan EMI Calculator?

A personal loan EMI calculator is an online tool that calculates the EMI amount you need to pay against the personal loan taken. You just need to enter three particulars – the loan amount, the interest charged on it, and the desired loan tenure. The personal loan EMI calculator will provide you with the EMI value in seconds.

How to Calculate Personal loan EMI?

Manually
You can calculate the EMI on your personal loan, using the formula below:
P × R × [(1+R) N / (1+R) N-1]
where,
E is the EMI
P is the Principal loan amount
R is the rate of interest
N is the loan tenure in months
Using PL EMI calculator
You can easily ditch the long calculations and use a personal loan EMI calculator instead. A personal loan EMI calculator will calculate and give you the EMI amount with just a tap.

EMI Calculator

You can easily dictch long calculations and use a personal loan EMI calculator instead. A personal loan EMI calculate and give you the EMI amount with just a tap.

How to Calculate EMI using a Personal Loan EMI Calculator?

Using the Hero FinCorp personal loan EMI calculator, the EMI amount can be calculated in three short simple steps –

In the Personal Loan EMI Calculator, first input the principal amount of the personal loan.
Enter the applicable rate of interest levied on the personal loan.
In the final box, enter the desired tenure of the loan.

Then click 'Calculate' and the PL EMI calculator will show you the exact EMI value, based on your inputs.

Calculate Your Loan EMI

What Are the Benefits of Using a Personal Loan EMI Calculator?

Know Emi Value Beforehand

A personal loan EMI calculator helps you know the monthly loan instalment that you will have to pay without fail. Thus, it keeps you well prepared for the loan repayment.

Plan Your Budget

EMI will be a fixed cost for you until the personal loan is fully repaid. Since you can very well know beforehand how much that EMI would be, by using a PL EMI calculator, you can plan your monthly budget accordingly.

Adjust The Repayment Schedule

Once the personal loan EMI calculator provides you with the EMI amount, if you feel it is a burden or does not suit your current financial situation, you can easily adjust or extend the loan tenure to arrive at an EMI that is more suitable.

Easy to Use

Experience a quick and transparent loan approval with us. Benefit from our streamlined procedures, guaranteeing a rapid turnaround time and disbursal of funds within just 48 hours.

What Is a Personal Loan Amortisation Schedule?

A personal loan amortisation schedule is a complete table of periodic loan payments. This table of periodic payments shows the component breakdown of each payment – i.e., how much principal amount and how much interest amount you will need to pay in a repayment. Furthermore, it shows the total payment made and the remaining payable balance. As the tenure advances, a major share of repayment goes towards the principal payment and a lesser one towards the interest payment.

How Does The Personal Loan EMI Calculator Help In Lowering The EMI?

Using a personal loan EMI calculator online, you can easily and accurately know the amount of EMI that you will have to shell out every month. By keeping this detail handy, you can extend the loan tenure to adjust your EMI value and reduce it so that your monthly budget and other financial planning are not affected.

The longer the loan tenure, the lesser will be the EMI amount.

Also, if you have a good credit score, with a clear estimate of your EMI value, you can try and negotiate with the financial institution to reduce the interest rate on the loan. Without prior and proper information about the EMI value, this will not be feasible.

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Factors That Affect a Personal Loan EMI Amount

While applying for a Personal Loan, the EMI amount is the most important thing you must be concerned about. After all, you must adjust this amount in your monthly budget for successful repayment. Although a Personal Loan EMI calculator online helps calculate the exact loan EMI amount to repay each month, here are a few factors affecting the monthly obligation:

Credit Score

Your credit score determines your creditworthiness and repayment capacity higher your credit score, the more trust you can gain from the lender and the larger the EMI amount you can choose. A higher credit score also helps achieve the lowest Personal Loan interest rate,
reducing the EMI amount significantly.

Debt-to-Income Ratio

Your DTI ratio significantly affects your repayment capacity. The lower your DTI ratio, the higher the EMI amount you can afford monthly. Ideally, your DTI ratio should be at most 40% to keep your EMIs easily manageable.

Tenure

The loan tenure you select largely influences your Personal Loan EMI amount. A longer the monthly obligation, while a shorter tenure increases it. Therefore, evaluate your monthly budget before selecting a loan tenure to keep your EMIs affordable.

Income

Your income is the most crucial determining factor for your loan EMI calculation. The higher the income, the bigger EMI you can afford and the shorter term you can choose. So increase your income sources and mention them in the loan application to show how much you can afford monthly.

Frequently Asked Questions (FAQs)

What does EMI stand for and what does it mean?

EMI stands for Equal Monthly Instalments. EMI is the monthly amount you will have to pay for the period of your loan tenure to repay your personal loan completely. Each monthly payment is inclusive of a part of the principal amount and a part of the interest amount. This amount remains fixed throughout the repayment period.

How to use a personal loan EMI calculator?

Use Hero FinCorp personal loan calculator to calculate the EMI as follows –

Step 1 – Click on the ‘EMI Calculator’ and in the first box, enter the Principal Personal Loan Amount.

Step 2 – In the second box, submit the Rate of Interest that is applicable on your personal loan.

Step 3 – In the final box, input the Loan Tenure in months (or years).

Then click ‘Calculate’ and you will get your exact EMI value for the details entered.

Why should you know your EMI in advance?

Checks eligibility – Knowing the EMI amount in advance lets you estimate the amount of loan you can take, at what interest rate, and the time you will need to repay it.

Repayment affordability – Once you know the EMI value, which is a fixed amount over the repayment tenure, you will be able to judge if you are capable of paying that amount every month.

Plan your budget – By calculating your EMI in advance, you would know how much money you will have to shell out for the repayment of your personal loan. When there is no uncertainty about the EMI value, you can plan your monthly budget smoothly.

How to reduce your personal loan EMI?

The personal loan EMI amount can be reduced in the following ways –

High down payment – Down payment is the amount that a borrower pays to the lender, at the onset of the loan arrangement from their own pocket. The repayment clause and the interest are charged on the amount that is borrowed. If a major chunk of the loan is paid already, then the repayment, and thus, the EMIs, will also be less.

Long loan tenure – One can reduce the EMI value by choosing a long repayment tenure. A long tenure stretches the loan amount to be paid over a longer period. Consequently, the monthly instalment amount comes down significantly.

Low-interest rate – If the loan amount is manageable or you can pay it back quickly, you can get a loan with a relatively lower interest rate, which will reduce your EMI amount.

Balance transfer – If you have already taken a personal loan, and are finding it difficult to repay the same, you can opt for a balance transfer. In this case, the loan will be transferred to a different lender, with a lower interest rate than the existing lender.

What is EMI in a loan?

EMI stands for Equated Monthly Instalments through which you must repay a loan to the lender. Each loan EMI consists of a certain percentage of the principal amount and the interest cost. A Personal Loan EMI calculator allows easy EMI calculation.

Can my Personal Loan EMI change during the loan tenure?

Most Personal Loan plans have fixed interest rates that do not change during the loan tenure. Once you select your loan term, the EMI amount remains unchanged throughout the repayment period. However, sometimes it may change if you prepay a partial amount.

What are the charges applicable on missing your Personal Loan EMI(s)?

If you miss a Personal Loan EMI, we charge an additional interest rate of 1%-2.5% per month on the overdue EMI or principal amount. Since it may increase your loan cost, paying each EMI before the due date is paramount during the loan tenure.

Should I prepay my Personal Loan early?

Personal Loan prepayment is a useful strategy to pay off the debt sooner and save money on the interest outgo. However, you may have to pay a nominal prepayment fees for the same.

What happens if in case I fail to pay my EMI?

Personal Loans are unsecured, which means you do not pledge any asset as collateral against the loan. So even if you fail to pay your loan EMI, you don't have any assets at risk of losing. However, you may have to pay 1-2% of your EMI amount if it remains unpaid for 30 days post due date.