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Understanding EMI And Personal Loan Calculators


Equated Monthly Installment, commonly called as EMI is termed as the payment made by the borrower to the lender (Banks, Financial Institutions, NBFCs) every month towards the repayment of the loan. It includes the principal amount with the accrued interest to be repaid every month till it gets waived off. In present scenario, many of the individuals are inclining towards taking loan of different types so as to fulfill their dreams which may either include owning a car, house or educational loan for children and others. EMI options initiated by the financial institutions have brought a major relief for the borrowers to repay it on monthly installment basis at different interest rate and specified tenure.

Also Read: 6 Types of Personal Loans You Didn’t Know

Since, EMI has turned out to be the important aspect of financial transaction, people looking for personal loan needs to understand the concept of EMI calculator, so that they can plan their EMIs in advance. As and when borrower reaches any financial institution, they check the eligibility and credit score to approve their personal loan application. There is a tool called as Personal Loan EMI Calculator through which you can easily calculate the amount to be paid as EMI against the personal loan borrowed by the financial institutions. Using this tool, you will be able to find best personal loan offers as per your eligibility and requirements.

Factors determining EMI

  1. Loan Amount– The amount borrowed by the financial institution is called the loan amount. Rate of interest is applied on this loan amount and is then divided into EMI which is monthly payable for a specified tenure. Also, EMI payable should not be more than 40% of the monthly income of the borrower.
  2. Interest Rate– It refers to the rate that is charged on the loan amount. Interest rate can be either fixed or can be of floating nature. In case, if there is a fixed interest rate applicable on the loan amount, the rate remains same throughout the loan tenure, and if it’s of floating nature, rates may vary accordingly during the loan tenure.
  3. Loan Tenure– It is referred as the time chosen by the applicant to repay the loan amount. As many of the banks allow the flexible tenure for the repayment of loan, it generally ranges from 1-5 years. Through EMI calculator, applicant can easily calculate the tenure of the repayment of the loan. However, it is inversely proportional to the EMI. Higher the loan tenure, lower the amount of EMI.

Calculation of Personal Loan EMI

Calculating Personal Loan EMI is very simple as it requires simple mathematical formula. With the EMI calculator available on, customers will be able to calculate the EMI for personal loan. The formula is:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1],

In this formula, the letter stands for:

EMI is the equated monthly installment

P is the principal or the amount that is borrowed as a loan

R is the rate of interest that is levied on the loan amount (the interest rate should be a monthly rate)

N is the tenure of repayment of the loan or the number of monthly installments that you will pay (tenure should be in months)

Loan Amortization Table

This table gives a blueprint of the breakup of loan repayment tenure. It consists columns of principal amount, interest rate and loan tenure displaying the breakup of the principal amount and interest components of the loan. This loan amortization table helps in scheduling plan to foreclose loan or transfer it. This schedule is therefore more useful to loan borrowers in order to make better decisions related to pre-payment or refinance of loan and also provides the interest details based on which one can avail tax exemptions.

Benefits of using Personal Loan EMI Calculator

As personal loan EMI calculator is used for calculating EMI before the applicant plans to take a loan, it helps in assessing the repayment capacity of the applicant. With an online EMI calculator applicant can feed the desired loan amount, loan tenure and the interest rate which thus gives the result within fraction of second.

  1. Saves from complex calculations: With the availability of the EMI calculator, complex mathematical solution gets formulated easily and the EMI amount is calculated instantly. The tool provided by called personal loan EMI calculator reduces the stress involved and also saves you from tedious calculations to get the results.
  2. Time saving: Paisabazaar’s EMI calculator for personal loan is developed in such a way that it solves the complex problem so instantly that it saves much needed time of the applicant. Applicants need to fill-in the required details for the calculation of monthly payouts and this EMI calculator displays the EMI on the screen instantly. Save your time and get your EMI calculated free of cost.
  3. Assesses repayment capacity: This tool helps the applicant to have a know-how about the repayment capacity of the loan taken and also helps in planning for finances in future. It also helps in maintenance of the budget that needs to be kept aside for the monthly EMI payout. Thus, EMI calculator can be of great worth in planning as well as assessing applicant’s financial strategies.


Using EMI calculator is convenient and quick which ultimately brings individuals on cost-free platform to calculate their EMI payout. By filling in the required details like loan tenure, loan amount and the interest rate, applicants will be able to get their EMI displayed instantly. Paisabazaar’s EMI calculation tool is easy-to-use and can be used for free any number of times. Personal loan EMI calculator not only calculates the monthly payouts (EMI) but also the personal loan eligibility for the individual. With the applied mathematical formula for the EMI calculator, it becomes easy for the individuals to get the results easily and quickly. Get your EMI calculated without much hassles anymore through personal loan EMI calculator. You can check the features of the different loan offers made to you and apply for the same at Paisabazaar within minutes.

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