Personal Loan EMI Calculator
NiyoX Personal Loan EMI Calculator is a simple tool to help you better plan your borrowing and loan repayments. It’s easy to use—all you need to do is enter your preferred loan amount, interest rate, and tenor (number of months in which you want to repay the loan). The personal loan calculator tool will instantly give you a break of your EMI (Equated Monthly Installment), the Total Repayment Amount, and the Total Interest Amount on your loan. It’s the simplest personal loan interest calculator there is!
Benefits of using the EMI calculator for personal loan
Here are some of the benefits of using a personal loan EMI calculator.
Compare loans: You can enter a fixed loan amount and tenor, and vary the interest rate and processing fee depending on the rates fixed by the various banks. The tool will give you a clear idea of the total cost of your loan and based on that you can choose your personal loan provider.
Saves time: Calculating personal loan EMI with the tool takes less than a minute when you use a calculator. Also, EMI calculators are extremely easy-to-use and 100% accurate.
Compare loan tenors: Compare your EMIs with different loan tenors to see which one works the best for you. If you are comfortable paying a higher EMI to close your loan early, go for a shorter tenor. Else, you can opt for a longer tenor with lower EMIs.
Verify EMI information: You can validate the repayment schedule offered by the bank by using an EMI calculator.
What factors affect personal loan EMI?
- Loan amount: The higher your loan amount, the EMI payable would be higher. The maximum loan amount you can avail yourself is decided based on your profile, income, occupation, repayment history, and other factors.
- Interest rate: The rate of interest on your loan is directly proportional to the EMI. The higher the rate of interest, your EMI would be higher. The interest rate is based on a number of factors such as your income, your credit history, repayment capacity, etc.
- Loan tenor: The loan tenor is inversely proportional to the EMI. The longer the tenor, the lower the EMI. However, with a longer tenor, you may end up paying more as interest.
How to calculate personal loan monthly interest rate?
The most crucial information you must look forward to while researching the best option for a personal loan is the interest rate offered by any lender. Once you know the interest rate on the loan you are considering, it’ll be easy to calculate your EMIs. Generally, the rate of interest is usually mentioned as an annual rate and you need to convert it to a monthly one to go ahead with calculating your EMIs. Here’s how to convert your annual interest rate to a monthly one:
For instance, if the rate of interest offered on your loan = 18% p.a.
The monthly rate of interest = 18/12 = 1.5% per month
Should I prepay my personal loan?
Prepayment of a loan is when you pay the entire or partial amount of your loan before it is due. While a load repaid before time gives peace of mind, it may not be financially beneficial. Here are two reasons to consider before you make a prepayment of your loan amount:
- Prepayment charge: Usually, most banks charge a penalty or a prepayment fee when you pay off your loan before its due date. Prepayment charge varies across banks—it could be a percentage of the amount you are paying, or a flat fee. It could even be a percentage of the overdue interest amount. At times, you could even get lucky and your bank might not charge you at all. In any case, it’s best to check with your bank or read the loan documents carefully to understand your individual situation.
Comparing the penalty fee you’ll incur versus the savings on interest charges for the remainder of your loan period will give you clarity if repaying is the best option for you. Most loans come with a lock-in period during which you can’t prepay or foreclose your personal loan. - Savings on the principal amount: Prepaying your loan very early into your tenor could help you save a lot. But, due to the lock-in period, it might not be a viable option. After paying EMIs through the lock-in period, often borrowers think that the interest on the remaining EMIs will be low. And closing the loan would not lead to substantial savings on the remaining cost of interest.
However, interest paid on the unpaid principal amount remains the same as banks calculate interest on a reduced-balance basis. While planning to foreclose your loan, consider making your decision based on the interest rate charged than the remaining tenor.
A smarter option would be to make a partial prepayment instead of foreclosing the loan. Partial prepayment reduces the principal amount remaining, which means you’ll pay lesser interest in the remaining EMIs. However, you’ll need to pay off a substantial amount of your loan for this method to be effective. Also, this will be more beneficial if you do it as early as possible in the loan period. Else, the prepayment fee might surpass interest savings.
What is the formula for personal loan EMI calculation?
The mathematical formula for calculating EMIs is:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Note:
P: Principal, or loan amount
R: Interest rate per month (annual interest rate divided by 12)
N: Number of monthly instalments, or loan tenor in months
Here’s an example to help you understand the EMI calculation better. Let’s consider—if you plan on taking a loan and want to calculate the EMI to understand how you’ll have to manage your finances each month so you can make timely repayment.
Principal amount P = ₹3,00,000
Interest rate = 18% p.a. So, R = 18/12×100 = 1.5% or 0.015
Loan tenor = 36 months
EMI = ₹3,00,000 x [(0.0029 x (1 + 0.015)^36) / ((1 + 0.015)^36 – 1)] = ₹10,845
Save yourself from doing this complicated math, and use the simple and efficient EMI calculator for personal loan.
Frequently Asked Questions
We appreciate your interest in availing a NiyoX Personal Loan. We have recently launched the Personal Loan product for a limited user base and we are working hard to make it available for you at the earliest.
To calculate the lowest EMI, you need 3 details:
- Your preferred loan amount
- The lowest interest rate offered by a bank
- The maximum tenor
You can enter these details in the EMI calculator personal loan to get the lowest EMI applicable on your loan.
To give you perspective, in long-term loans, you pay more towards interest although your EMIs are lower when compared to short-term loans. For short-term loans, the situation is vice versa.
Yes, in case of a prepayment or foreclosure, you may pay your EMI in one shot. However, different banks have different conditions for personal loan prepayment. Some banks may charge a prepayment fee for foreclosure. It’s best to read your loan terms and conditions before opting for foreclosure, or prepayment.
Paying EMIs on time is of utmost importance. In case you fail to make your EMI payment on time, most banks charge a penalty fee of 2% on your EMI. Missing EMI payment affects your credit score negatively and may compromise your chances of getting a loan in the future. Use a personal loan EMI calculator and calculate your EMI beforehand to gauge the financial burden you can expect and avoid any surprises later on.
Knowing your EMI amount in advance helps in numerous ways:
- You can plan your finances better so that you can pay your EMIs on time
- Timely EMI payments help improve your credit score
- A better credit score helps banks lower the interest rate on your loans in the future
No, personal loans are unsecured—meaning, you do not need collateral to get a personal loan.
Yes, the EMI amount remains constant unless you prepay a part of your loan amount at any time during the tenor of your loan.
No, this easy-to-use personal loan EMI calculator is free to be used to calculate the EMI for a personal loan from any bank or financial institution.
- Hassle-free loan approval in 2 minutes
- Loans starting from ₹10,000 up to ₹3,00,000
- tenor varies between 3-36 months
- 100% paperless application
- Loan disbursal in less than 2 hours
The NiyoX Personal Loan EMI Calculator is easy and simple to use. You just enter the Loan Amount you wish to take, the Loan tenor (number of months for repayment), and the Rate of Interest (per annum).
You will instantly get Your EMI Amount, the Total Repayment amount for your loan, and the Total Interest Payable.
EMIs will be auto-debited monthly from your bank account set up for auto repayment during the loan application process.
