Personal loan EMI calculator
When you take a Personal Loan, you repay it in equated monthly instalments (EMIs) over the agreed tenure. It is therefore important to know how much you will need to pay every month. Calculating your EMI in advance helps you check whether the repayment fits comfortably within your monthly budget. You can calculate the EMI using a formula or by using an online Personal Loan EMI calculator. This guide explains how EMIs work and how you can calculate them easily online.
A Personal Loan EMI is the fixed amount a borrower pays every month to repay a loan within the agreed tenure. Each EMI includes two components:
As repayments progress, the interest portion gradually decreases while the principal portion increases.
You can calculate your EMI using this standard formula:
EMI = [P x R x (1 + R)^N] / [(1 + R)^N - 1]
Where:
Suppose you apply for an instant Personal Loan of Rs 4 Lakh at an annual interest rate of 18% for 3 years.
When you enter the values into the formula, your EMI will be approximately Rs 14,461 per month.
Manual calculation works, but it leaves room for error. A small mistake in the formula can give you the wrong figure.
The Personal Loan EMI Calculator, a free-to-use online tool, is available on the Hero FinCorp website. Here's why loan applicants prefer using this tool:
Using the calculator before you apply for an instant Personal Loan helps you make a well-informed decision.
Follow these simple steps to use the loan EMI calculator:
Step 1: Visit the Calculator Page
Go to the Personal Loan page on the Hero FinCorp website. You will find the loan EMI Calculator.
Step 2: Enter the Loan Amount
Use the slider or type in the amount you wish to borrow. You can choose from Rs 50,000 to Rs 5 Lakh.
Step 3: Enter the Interest Rate
Input the applicable annual interest rate. The loan interest rate starts at 18% per annum.
Step 4: Select the Loan Tenure
Choose your preferred repayment period. Tenure options range from 12 to 36 months.
Step 5: View Your EMI Instantly
The calculator displays your monthly EMI and total interest payable instantly on the screen.
The best part is that you can change the loan amount or repayment tenure as per your requirement and see the difference in EMI and interest payable.
Once you're satisfied with the EMI, click on "Get Instant Funds" or "Apply Now" to begin your application process.
Several variables affect how much you pay each month:
|
Factor |
Impact on EMI |
|
Higher loan amount |
Increases the EMI |
|
Higher interest rate |
Increases the EMI |
|
Longer tenure |
Reduces the EMI but increases the total interest payable |
|
Shorter tenure |
Increases the EMI but reduces the total interest payable |
|
Prepayment |
Reduces outstanding balance and future EMIs |
Understanding these factors helps you choose a loan plan that suits your income and financial goals.
Taking a Personal Loan is only half the task. Managing it responsibly is what builds your credit score over time.
Understanding your Personal Loan EMI helps you plan repayments and choose a loan amount that fits your budget. While the formula can be used for manual calculations, an online calculator makes the process faster and easier. The Personal Loan EMI Calculator on the Hero FinCorp website lets you calculate your monthly instalment instantly so you can borrow with better financial clarity and confidence.
Disclaimer: The information provided on the Website does not constitute investment advice, financial advice, trading advice, or any other form of advice, and you should not interpret any of the financial content as such. Please conduct your own due diligence and consult with a financial advisor before making any investment decisions. Midday does not endorse or promote any such activities, and you access them at your own risk, fully understanding the monetary and legal consequences involved. Midday shall not be held responsible for any losses you may incur as a result of using any such apps or websites.
