When it comes to money matters, personal loans can be an effective solution to control financial emergencies or needs. It comes to your aid to deal with a variety of financial situations. So, whether you're looking to fund a home improvement project, wedding, vacation or even consolidate your debt, a personal loan can be an ideal financial tool. But the most important factor when considering a personal loan is to determine the amount you need and how much you can manage to borrow and pay back with confidence. Using a personal loan EMI calculator can help you see how to estimate your monthly payments.
Importance of a Personal Loan EMI Calculator
A personal loan EMI calculator helps to ensure that the math adds up in your favour. Knowing the amount you can comfortably borrow and pay at a pace that's easy for you is a crucial option before obtaining the loan. The personal loan EMI calculator can also help you know your target payment date before taking the loan and knowing how much of the personal loan payment will feature in your day-to-day budget.
The ICICI Securities personal loan is an easy-to-use calculator that allows you to choose the tenure and decide whether you need to opt for a long-term or a short-term loan repayment duration. Besides, you can also adjust the principal amount for affordability. You can toggle the value for the loan amount in the calculator to arrive at a manageable and convenient EMI amount. Since the principal amount is directly proportional to the EMI amount, it would mean that if the principal amount increases, the EMI amount decreases and vice versa.
The calculator uses the data you enter to reveal the EMI calculations. You need to enter the amount of personal loan you wish to borrow, the rate of interest, and the loan duration or tenure of the personal loan repayment. The calculator then reveals the accurate sum you may have to pay every month to repay the personal loan over the loan tenure. Here's how to go about it:
Formula to Calculate Personal Loan EMI
The EMI for your personal loan is calculated with the formula mentioned below:
EMI = (P × R × (1+r) ^n)/((1+r) ^n-1)
Here,
P = Principal Amount
R = Rate of Interest
N = Loan Duration or Tenure in Months
To understand the above formula, let's use an example.
Assuming Mr. B obtains a loan of Rs 1 lakh for a period of 12 months at an interest rate of 10.75%. According to the formula, Mr. B will have to pay an EMI of Rs 8827 every month.
While manual calculations can be prone to error and are time-consuming, the personal loan EMI calculator offers you a convenient solution. It allows you to use the calculator at any time and without limit to receive precisely 100% accurate EMI amounts.
Personal Loan Amortization Schedule
A personal loan amortization schedule is your personal loan plan that shows you how your loan will be repaid over the tenure. It is a table that contains a detailed and periodic plan of action with the principal loan amount, rate of interest and percentage interest comprising every payment until the personal loan is repaid in full.
How to use the ICICI Direct Personal Loan EMI calculator?
A few minutes is all you need to spare to determine your EMI payable on your personal loan. The ICICI Direct Personal Loan EMI calculator has a very user-friendly interface, making it possible for almost anyone to use it. Follow the below-mentioned steps to determine your Personal Loan EMI using the calculator:
Once all the data is entered the calculator will provide an estimate of the EMI payable. You will also obtain a clear-cut breakdown of the principal amount and interest liability. The numerical results will be accompanied by a pie chart for better understanding.
The calculator makes it easy to estimate your monthly payments based on the amount you borrow and the loan duration.
You can find out how much your personal loan instalment or Equated Monthly Instalment [EMI] will be.
It is a quick, precise and hassle-free way of discovering the amount you need to pay over a fixed period of time.
The calculator is simple, easy-to-use, that reveals the EMI amount in a matter of seconds.
It saves tedious calculations, time and energy by calculating your EMI in seconds.
It is quick and reliable and helps you assess your repayment capacity.
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A personal loan EMI calculator gives you concise visuals to understand how your monthly payments and total costs will appear over the loan duration. By taking into account all the variables that you enter into the calculator, it determines an indicative EMI amount you would need to pay for the loan.
The calculator assesses the EMI amount you need to repay the lender every month. It is a handy financial tool that computes your EMI amount based on the variables you enter, such as the personal loan amount, the interest rate and the loan tenure or duration. Once you have a distinct understanding of the EMI amount you can service and the loan duration you can opt for, you can also work backwards and adjust the principal amount that you need to apply for.
A personal loan EMI calculator helps you plan your finances effectively and easily. It shows you the monthly amount you need to set aside to repay your personal loan over the prespecified period of time. It is an easy-to-use financial tool to aid in planning your finances. It is free of cost and can be used as many times as you want at your convenience.
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