Plan the repayment of your personal loan better with an online EMI calculator

Personal loans are among the most popular financing options available today. Not only is it easy to get the loan, but you can use it to meet almost any financial requirement. Its popularity can also be attributed to the fact that you can access a large loan amount in a very short time.

But despite the convenience it brings, experts advise to only resort to a personal loan after analyzing your needs and planning the repayment. By being careful, you can ensure that the loan helps you manage your financial needs but does not get you into the debt trap.

To help you estimate the potential cost of a personal loan, lenders have designed a Online Personal Loan EMI Calculator that you can use to plan your repayment before applying for a personal loan.

While you can use the formula to manually calculate your personal loan equivalent monthly payments (EMI), an online calculator is fast, convenient, and error-free.

How to use an online personal loan EMI calculator?

A Personal Loan EMI Calculator is an online tool that can determine your EMI and Total Interest Base, Principal, Interest Rate, and Term values ​​that you enter.

The calculator uses the following formula:

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

P = Principal or loan amount

R = Monthly interest rate of the personal loan

N = Number of EMI or content

For example, if you want to take a loan of 10,000,000 rupees at an interest rate of 12.0% and repay it over 48 months, you just need to enter these values ​​into the online calculator. Here is the result you will receive:

• EMI loan = Rs. 26,334

• Total interest payable = 2 64 024 rupees

• Total payment (Principal + Interest) = Rs.12,64,024

Once you know the personal loan interest rate offered by your lender, you can change the principal and term values ​​based on the IMEs and your repayment capabilities. This way, you can plan your personal loan repayment.

Adjust the duration for a comfortable repayment

Lenders such as Bajaj Finserv offer a personal loan that can be repaid over a flexible term of up to 60 months. Choose the length of time after reviewing your monthly expenses to make sure loan repayment is not a burden on your pocket.

If you already have outstanding obligations each month, you can opt for a longer term. However, you must remember that a longer term translates into a higher net interest payment.

Conversely, if you go for a shorter term, your EMI expenses are likely to be high, even if the net interest payment remains low.

Adjust capital for an affordable loan

You can also toggle the value of the principal in the calculator to arrive at an EMI, which is manageable. Your principal amount is directly proportional to the EMI. This means that if the first increases, the second increases and vice versa. Once you have an idea of ​​what EMI you can handle and what term you choose, you can work back and adjust the loan amount you request.

Now that you know the importance of an EMI calculator and how it works, you can use it to decide on a loan that meets your needs. Remember to keep the personal loan interest rate and other fees and charges to bear in mind when you request them.

If you are looking to benefit from it, Bajaj Finserv offers instant personal loans with full transparency in their terms. You can apply for a loan from the comfort of your own home and receive approval within minutes. In addition, you can get money in your account within 24 hours of approval.

Bajaj Finserv also offers pre-approved offers on loans and other products, which can save you time and effort. Check if you qualify for a pre-approved personal loan by entering only your basic information today.

Disclaimer: This content is distributed by Bajaj Finserv. No journalist from the HT Group is involved in the creation of this content.

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