Knowing your personal loan Equated Monthly Instalments (EMIs) in advance can help you effectively plan your finances. It allows you to assess your repayment capacity and avoid any financial strain in the future. A personal loan EMI calculator simplifies this process by providing quick and accurate estimates, helping you make an informed decision. This article gives an insight into the methods of personal loan EMI calculation and how to choose a smart personal loan to draft a practical and manageable financial plan.
How to calculate personal loan EMIs
Understanding how to calculate your personal loan EMIs is essential before applying for a loan. There are two primary methods to estimate your EMIs:
- Manual calculation method
The EMI for a personal loan can be calculated using the following formula:
EMI=
Where:
- P= Loan amount
- r= Monthly interest rate (Annual interest rate / 12 / 100)
- n= Loan tenure in months
Example calculation:
Let’s consider a personal loan of ₹5,00,000 at an annual interest rate of 11% for a tenure of 3 years (36 months):
EMI= [500000×0.00916× (1+0.00916) ^36]/[(1+0.00916)^36−1]
EMI = 15,264EMI=15,264
Thus, for a loan of ₹5,00,000 at 11% interest for 3 years, the monthly EMI would be approximately ₹15,264.
Apparently, manual calculations can be complex and time-consuming, which is why using an EMI calculator is a more efficient approach.
- Using IDFC FIRST Bank’s personal loan EMI calculator
The online EMI calculator offered by IDFC FIRST Bank simplifies the calculation process. It allows you to determine your EMI quickly with the help of slider buttons for:
- Loan amount:Select your preferred loan amount by adjusting the slider against it.
- Loan tenure:Choose a repayment period that suits your financial plan.
- Interest rate:Enter the applicable interest rate to estimate your EMI.
By adjusting these values, you can compare different repayment options and select the one that best fits your budget.
Benefits of a personal loan EMI calculator in planning your finances
Using a personal loan EMI calculator offers several advantages that aid in financial planning and loan management:
- Accurate financial planning: The calculator provides precise EMI estimates, helping you understand how the loan fits into your monthly budget without any surprises.
- Time-saving and convenient: Avoid complex manual calculations and instantly get results by entering basic loan details.
- Budget management: Knowing your EMI beforehand helps you plan your expenses better and ensures you do not overstretch your finances.
- Comparison of loan options: The tool allows you to compare different loan amounts, interest rates, and tenures to find the best repayment strategy.
- Informed borrowing decision: With an understanding of your EMI obligations, you can opt for the most suitable personal loan option that aligns with your financial goals.
- Avoiding loan defaults: Accurate EMI planning ensures you borrow within your repayment capacity, reducing the risk of missing payments and incurring penalties.
What should be your next step?
Once you have estimated your EMIs using the IDFC FIRST Bank EMI calculator, the next step is to choose a smart borrowing option like IDFC FIRST Bank’s FIRSTmoney smart personal loan, which offers numerous benefits such as:
- Competitive interest rates: FIRSTmoney offers you one of the most competitive interest rates starting at just 10.99% per annum, ensuring affordable repayment options.
- Zero foreclosure charges:Enjoy the freedom to repay your loan anytime without any penalties, helping you save on interest.
- Flexible tenures:Choose a repayment tenure between 9 months to 60 months that suits your financial situation.
- DIY online application journey:Apply effortlessly through a completely digital process and receive instant approval and disbursal of amounts that can go up to ₹10 lakhs instantly.
Conclusion
By using an EMI calculator, you can accurately estimate your monthly obligations and make a well-informed borrowing decision. IDFC FIRST Bank’s FIRSTmoney smart personal loan offers a seamless application process, flexible repayment options, and attractive benefits that ensure a smooth loan experience. Start your journey towards financial stability today by calculating your EMI and choosing the right borrowing option with IDFC FIRST Bank.
