Personal loans are the most widely available credit product in the Indian lending industry. More than 78% of all credits accessible in India fall under this category. The unsecured nature of these loans makes them a popular choice among potential borrowers.
Individuals planning to obtain such credits must familiarize themselves with certain aspects before finalizing their decision. The first and primary loan feature that a potential borrower has to decide is the amount of EMI they have to pay towards loan repayment. The best way to calculate and determine EMI is to use a personal loan EMI calculator.
Calculating the EMI amount for a personal loan is a complicated procedure involving multiple variables. Calculation can be difficult for a person who is not well acquainted with the ins and outs of EMI calculation. A personal loan interest rate calculator can be immensely helpful in such situations.
It allows these complex calculations to be performed in seconds, saving time that could otherwise be used productively. This eliminates the possibility of any errors in the calculations. It enables you to plan your repayment strategy by supplying you with the right information.
Determining the EMI amount of a personal loan requires the use of a specific formula which is standard in all the calculators available online. Grow’s loan calculator for EMI uses the same standardized methodology to accurately calculate the exact amount to be paid as EMI against your loan.
EMI = [P x R x (1+R) ^N]/ [(1+R) ^ (N-1)].
Here, P stands for Principal amount, R stands for interest rate and N stands for tenure. The EMI of any loan amount can be obtained with the help of this personal loan EMI calculator formula.
The personal loan monthly EMI calculator is easy to use. Calculators help individuals find the right monthly loan payment amount based on certain parameters.
- Enter parameters: Borrowers need to enter the following parameters to calculate the EMI amount:
Loan Amount: The total amount a borrower plans to borrow from a bank or financial institution. Interest Rate: The annual interest rate offered by the lender. However, for calculation purposes, the calculator converts it to a monthly interest rate.
Loan Term: The period during which the borrower can repay the loan to the lender. The term of the loan can be either in months or years.
By inputting the required data into the calculator, it uses the EMI formula to calculate and display the monthly EMI amount.