How is EMI Calculated in a Personal Loan?A personal loan is taken for multiple purposes like debt consolidation, marriage, higher education, vacation, etc. A personal loan does not require any collateral or guarantor and is offered with minimal documentation and eligibility criteria.
However, before applying for a personal loan, always calculate your loan’s equated monthly installments (EMIs) set by the lender within a given tenure. When you apply for a loan, EMI is the major aspect in deciding your loan amount and tenure. The personal loan EMI calculator helps to accurately calculate the monthly instalments in advance and thus enables borrowers to plan the loan repayment.
Initially, if you choose to repay a higher EMI, the shorter will be the tenure on a low-interest rate. However, with a longer tenure of more than 6 months, personal loan EMIs incurred will be less, and the rate of interest charged will be higher. So, the EMI calculator graphically gives borrowers a clear picture of the EMI even before applying for a loan.
SimplyCash - an instant personal loan app powered by HeroFinCorp, one of the reputed financial services companies in India, has curated an online Loan EMI calculator that makes it simple for the borrowers to sum out the monthly EMIs to be paid on the principal loan amount.
What is a Personal Loan EMI Calculator?
The manual method of EMI calculation could be exhausting and time-consuming. Hence, the SimplyCash personal loan EMI calculator gives accurate results based on the principal loan amount, interest rate, and tenure. So, to avoid unpleasant surprises after availing of the loan, it is advisable to get clarity on the EMIs beforehand.
To compare the online EMI results with the manual findings, borrowers can use the below formula to equate the EMI:
EMI= [P x R x (1+R) n] / [(1+R) (n-1)] where P stands for = principal loan amount, R= rate of interest, N= tenure in number of months, which is generally between 6 - 24 months
How does SimplyCash personal loan EMI calculator work?
When you decide to apply for a personal loan through SimplyCash instant personal loan app, it simplifies the user journey to avail instant loan in few easy steps. One of the steps being, calculating an EMI before a loan application.
For instance, if you need a loan amount of 50,000, navigate to the EMI calculator on the SimplyCash app or the website. Use the slider to set the loan amount, interest rate, and tenure. In a matter of seconds, you will see an accurate EMI figure graphically presented through the calculator.
What are the advantages of using a Personal loan EMI calculator?
By using the personal loan EMI calculator, you may experience the following benefits:
- You come to know the EMI that you need to shell out every month in advance
- By knowing the EMI amount you will be paying every month, you get the option to manage your monthly expenses around your EMI and spend accordingly
- The loan EMI calculator gives accuracy and eliminates the errors that occurred in the manual calculation
- Online loan EMI calculator is time-saving and saves borrowers from the complex calculations
Finally, with the help of the SimplyCash personal loan EMI calculator, you can get an exact assessment of your monthly installments and proceed faster with the loan application.