Personal Loan EMI Calculator

Formula to Determine Personal Loan EMIs

The personal loan calculator uses the following formula for determining EMIs:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Where:

• EMI: Equated Monthly Instalment
• P: Principal Loan Amount
• R: Monthly Interest Rate (Annual interest rate divided by 12)
• N: Loan Tenure in Months

While the formula may seem complex, EMI calculators automate this process, allowing borrowers to quickly estimate their monthly repayment amount. Simply enter the loan amount, interest rate, and tenure to get an instant result.

How to Use the SMFG India Credit Personal Loan EMI Calculator?

Understanding how to calculate personal loan EMIs is a crucial part of your loan application process. Our online personal loan EMI calculator comes with three tabs to arrive at your EMI in an instant. Follow the steps below to find yours:

1. Choose the Loan Amount
   Select the loan amount you wish to apply for. Our personal loan EMI calculator allows you to choose an amount up to INR 30 lakhs*. This is the principal amount that you will be repaying over the loan tenure. This is the figure that will significantly influence the EMI calculation and the monthly payment amount, so it is essential to make sure the input is accurate.
2. Set the Rate of Interest
   Next, enter the annual rate of interest applicable to your loan in the PL loan EMI calculator. The interest rate determines how much interest you will pay over the loan period and is one of the biggest factors that affect the EMI amount. Please note that while you can try different interest rates to see how they impact the EMI, the final interest rates lie at the sole discretion of SMFG India Credit.
3. Select the Tenure
   Choose the repayment tenure for your loan, which is the duration over which you have to pay back the borrowed amount. You can choose a repayment tenure of up to 5 years or 60 months in our loan EMI calculator for a personal loan. The tenure affects the EMI amount with longer durations typically resulting in lower EMIs but increasing the total interest to be paid.
   
   Here's an example to show you how the personal loan EMI calculator works. If you are looking for a loan of 1,00,000 for a repayment tenure of 3 years at an interest rate of 12 per cent per annum, complete the following actions on the calculator:
   • Move the 'Loan Amount' slider to 1,00,000
   • Next, select ‘3’ years as ‘Loan Tenure’
   • Finally, shift the slider to 13 in the ‘Rate of Interest’ box.

Please see our example of the EMIs on a Personal Loan of INR 1,00,000 for varying tenure with a 13% interest rate at SMFG India Credit.

How Can a Personal Loan Calculator Help You in Financial Planning?

A personal loan EMI calculator enhances financial planning by providing a realistic estimate of your monthly EMIs. This allows for better budgeting, as you can plan your expenses and allocate funds more efficiently.

Additionally, these tools make it easier to compare multiple loan offers, allowing you to choose the most suitable option based on your financial needs.

Benefits of Using a Personal Loan Calculator for EMI Calculation

Using a personal loan EMI calculator offers a variety of benefits, especially if you are planning to avail of funds in the near future.

• Accurate Planning: The loan calculator can help you plan your loan accurately based on the terms the lender offers. It allows you to make adjustments to ensure maximum affordability or savings.
• Budget-Friendly Borrowing: By calculating the potential EMIs, the calculator helps you borrow within your repayment capacity, preventing any strain on your monthly budget.
• Maintain a Good Credit Score: Planning EMIs that fit your budget ensures you pay them on time, reducing the chances of defaulting. This behaviour demonstrates healthy credit management and can improve your credit score.
• Ease of Use: Personal loan EMI calculators are user-friendly and guide borrowers through the process. You need to input the loan amount, interest rate, and tenure on the lender's website, and you will get quick results, ensuring clarity and comfort.
• Time-Saving: Instant and accurate results online save time, eliminating the need to visit the lender, stand in queues, or wait for manual calculations.
• Error-Free Results: The calculator ensures accuracy and eliminates the risk of manual miscalculations. This helps you get precise information on the interest payable.
• Aligning EMI with Budget Changes: The calculator helps fit EMIs into the monthly budget by allowing necessary adjustments before applying for a personal loan.

How to Reduce Your EMI for a Personal Loan?

There are 2 main ways you can reduce your personal loan EMI. These are:

Choose a Longer Repayment Tenure: Longer repayment tenures mean that your payments are spread over a longer period. This reduces the monthly EMI amount, which you can estimate using our EMI loan calculator for a personal loan. However, while your EMIs decrease, the total interest paid over the loan term will increase.

Negotiate a Lower Rate of Interest: Lower interest rates can reduce the loan's total cost and make it more affordable. Negotiations with your lender can lead to more favourable repayment terms and lower rates of interest. A good CIBIL score and a healthy financial profile will help you to enjoy lower interest rates.

What Are the Factors That Can Affect Personal Loan EMI?

The personal loan EMI is affected by factors like:

• Loan Amount: The principal loan amount directly impacts your EMI. Higher loan amounts result in higher EMIs. Make sure you choose a loan amount that fits your repayment capacity to make the repayment process easier.
• Rate of Interest: Higher interest rates lead to higher EMIs, making the loan more expensive over time. Securing a lower interest rate through good credit scores or negotiation can reduce your monthly payments and total interest paid.
• Loan Tenure: Longer tenures spread the repayment over more months, reducing the EMI but increasing the total interest paid. Shorter tenures result in higher EMIs but lower overall interest costs. Make sure to choose a tenure that balances affordability with the total loan cost.

Please note that your EMI may also contain other charges such as insurance and service fees, which will not be indicated by the personal loan EMI calculator. The final EMI amount will be communicated to you after your loan gets approved through your loan agreement and schedule.

However, the EMI calculator gives a near-accurate estimate of the monthly EMI you will need to pay by taking into account the most important factors which are interest rate, tenure and loan amount.

Using the personal loan calculator, you can calculate the personal loan EMI of different tenures and check how a change in different factors impacts the EMI. EMI loan calculator for personal loans helps borrowers select the right loan tenure based on repayment capacity.

Personal Loan Amortisation Schedule

A personal loan amortisation schedule is a detailed table of periodic loan EMI payments of the chosen loan tenure. The table includes the total breakdown of principal and interest amounts in EMI payments for every year of the chosen loan tenure.

As seen above, it is calculated using the personal loan calculator and the table is generated automatically and helps borrowers keep track of what they owe at any given point.

How Is the Personal Loan EMI to be Paid?

Your personal loan EMIs are fixed and are debited directly from your bank account on a fixed date every month until the completion of loan tenure, the details of which are intimated at the time of approval.

Using the EMI calculator for a personal loan, you can determine the EMI amount and select the right loan tenure for yourself. The personal loan EMI calculator can also be used to check how different factors impact loan EMI.