When faced with a financial crisis, young millennials always take small personal loans first. A personal loan is eagerly sought after for daily spending, short vacations, or big purchases (such as the iPhone, or bike ). They are the best choice for making money easily and quickly.
With personal loans, you can cover your financial needs. Personal loans are useful when you need money to help your family financially, to pay for medical care, or to hold a celebration. The real fact is that it’s easy to apply for and repay a personal loan. Equal monthly installments, or EMI, are a way to repay your personal loan.
Even before applying for a loan, you can calculate the EMI amount with the personal loan EMI calculator. Now let’s learn how to do it. Read on if you want to learn how to easily calculate the EMI for your personal loan.
Why is a Personal Loan Required?
Personal loans help you pay for different types of expenses. You can also determine if a personal loan is suitable for your case if:
- Need Money Immediately: Money will be available within a few days.
- you want to repay debt (probably credit card debt) at a high-interest rate.
- They need money to buy their necessities.
- Unexpected spending and home remodeling are other useful use of personal loans.
How to Calculate EMI for Personal Loan?
Now that you have identified the reason for taking a personal loan and assumed the loan amount, you should also consider the EMI that you have to pay on a regular basis every month.
Let’s start by specifying a simple manual calculation.
To manually calculate the EMI for a retail loan, you need to use the following formula:
EMI = P × r × (1 + r)n/((1 + r)n – 1)
- ‘p’ is your Loan amount,
- ‘r’ is your interest rate,
- ‘n’ is your repayment tenure (in months).
Loan EMI is directly related to the loan principal and interest rate and is inversely proportional to the term of the loan. As a result, as loan amounts and interest rates increase, EMI increases. On the other hand, the longer the holding period, the lower the EMI.
EMI for personal loans can be calculated manually, but it is prone to errors. A quick and accurate way is to use the Personal Loan EMI Calculator.
Personal Loan EMI Calculator
Using the online EMI calculator is easy. Please follow the instructions below.
- Enter desired borrowing amount
- And choose an interest rate
- Please enter the borrowing period
- Click Calculate. Submit this data and the EMI calculator will calculate the amount of EMI you will be paid.
How does the calculator help?
The Personal Loan EMI Calculator shows the amount paid to the lender on an equivalent monthly installment (EMI) each month until the loan is fully repaid.
In the EMI calculation, the variables are the amount, duration, and interest rate of the personal loan. Furthermore, the calculator calculates monthly installments for personal loans at specific amounts, interest rates, and periods.
What it shows
The results of the EMI calculator show three things:
- The EMI amount is paid monthly.
- Interest rate component for each PMI month.
- The amortization schedule shows the outstanding balance after each EMI payment.
Benefits of personal loans
Personal loans have many advantages. First, it’s a great option to pay for urgent needs, such as unexpected medical bills or major purchases.
Let’s take a look at some of the main benefits of personal loans.
Prompt means within 24 hours.
Personal loans are processed in much less time than mortgages, which take 3-4 weeks. That’s why it’s a great option if you need money quickly.
No collateral required
Personal loans are unsecured, so you don’t need to take collateral or collateral. However, interest rates are usually higher to hedge losses.
Unlike a car or mortgage, personal loans are not limited to one thing. For example, you can use it to upgrade your lifestyle or pay off a credit card overpayment (for an unexpected purchase).
Few key KYC documents are required for online personal loan processing. Also, paperless documentation makes the process easier and faster.
If you are in urgent need of cash, personal loans are a preferred choice. Also, a good credit rating guarantees you the lowest interest rates. In summary, it only takes a few minutes to apply for the best personal loan online. Start the application process online today with your personal loan EMI calculator.