How to Calculate Your EMI Cash-strapped For Your Vacation? Try Travel Loans How to Get Immediate Cash For Emergency With Tata Capital Personal Loan Mistakes To Be Avoided When Applying for a Personal Loan Planning a wedding? Tips to get suitable marriage loans Which is Ideal for Your Needs - Personal Loan or Loan Against Property? Still Deciding on a Personal Loan? We're Here to Help! When To Take a Personal Loan - 5 Scenarios When do Expensive Unsecured Loans Make Sense? Beginners Guide To Apply for Personal Loans Credit Card v/s Personal Loan Financing a big travel using Personal Loans - A good idea? Personal Loan for Doctors Personal Loan for Pensioners Personal Loan Rejection Reasons Pre Closure of Personal Loan - Things to Consider When can you claim tax benefits on personal loans? Easy Steps to Transfer Personal Loan 3 Key Features that Distinguish Tata Capital Personal Loans All You Need to Know About Personal Loans Are you Eligible for Personal Loan in Your City? Basic Questions About Personal Loans Asked by Borrowers Choosing a Financial Institute for Personal Loans in Your City Common Myths About Personal Loans Understanding EMI and Personal Loan Calculators Ease the Financial Burden with Personal Loans for Women Things to Know Before Applying for a Personal Loan in Mumbai Explore the World with Personal Loans for Vacation Factors to Weigh in when Getting a Personal Loan Online Features and Benefits of a Home Renovation Loan Finance your Dreams with Tata Capital Personal Loans How a Personal Loan can Help Doctors Provide Better Healthcare? How Government Employees can Resolve Their Sudden Financial Woes Important Tips to Apply for a Personal Loan Personal Loans for Farmers in a Financial Crunch Repay Personal Loan Conveniently with Tata Capital Step by Step Process of Applying for a Personal Loan Debt-ception: Why taking a loan to pay off other loans is not a bad idea? Break up with your personal loan: Tips to pay off your debt early Don't let taxes get taxing: Your guide to smart tax decisions on your personal loan Why Indians are increasingly taking educational loan? Emerging opportunities in the Indian Personal loan industry A guide to setting up your own medical practice 7 Popular Personal Loan Myths Busted! Game of Costs: Your Guide to Renovating Your Home Tax Hacks that You will Thank Us For Planning to give Your House a Makeover? Here are the Things You Need to Know Personal Loan Tips to Pay Off Your Debt Early Debt-Ception: 5 Reasons Why Taking a Loan to Pay off Other Debt is a Good Idea Setting up Your Own Medical Practice 5 Reasons Indians are Taking Education Loan - and Why You Should Too Factors Affecting Personal Loan Interest Rates Tips to Prevent Personal Loan Frauds Secured vs. Unsecured Personal Loans Frequently Asked Questions: Personal Loans Criteria for Obtaining Personal Loans Pros and Cons of Personal Loans How Do Lenders Decide Personal Loan Eligibility? Pros and Cons of Personal Loans vs. Credit Cards Personal Loans - Tax Benefits Benefits of Applying for Personal Loans Online Golden Rules to Remember While Taking Up Personal Loans Eligibility and Documentation Requirements to Avail of Personal Loans 9 Things to Consider before Applying for a Personal Loan Using Personal Loan Calculator to Make the Right Decision 6 Tips to Get Your Personal Loan Approved Understanding Your Financial Needs with a Personal Loan Calculator How to Apply for a Personal Loan Personal Loan Charges and Fees Documents Needed to Take up a Personal Loan Consider the Risks Before Taking a Personal Loan to Invest How Much EMI Can You Afford? How to Achieve your Small Financial Goals When Your Savings are not Enough? How to Manage Your Personal Finances When You Have a Personal Loan? Personal Loans Are Easy to Avail & Disbursed Quickly. But are There Any Alternatives? Should you Break Your Investments to Repay Loans? 5 Things to Consider Before Applying for a Personal Loan All About Tata Capital Personal Loans: Overview of Features Can I Get a Personal Loan? What Criteria is Considered? Why you Need to Build up a Good Credit Score for Future? Want to Repay your Personal Loan Quickly? Read This Which Loans Should be Cleared Off First? Consumer Financing Options by Tata Capital How Tata Capital's Belief - 'We Only do What's Right for You (Customer)', Helps You? Improve your Credit Score to Increase Approval Rates on Future Personal Loans Get Personal: Applying for a Personal Loan Decoded What's in Your Deck of Cards? Decoding Personal Loans for The Self-Employed Don't Postpone Your Home Renovation Your Guide to Applying for an Education Loan Situational Guide to Taking a Personal Loan A Loan to Fund Your ABCs Can Fetch You Benefits Under 80E Holidays Circa 1992 Vs. Holidays Circa 2016 Planning To Splurge On Festival Shopping? There is Help at Hand How To Get Your Personal Loan Rates Lowered? How To Analyze the Festive Season Loans that are Offered To You? Does Pre-Paying a Personal Loan Make Sense? Credit Card or Festival Loans? Got Lesser-than-expected Annual Bonus? Festival Loans can Help You in Your Planned Purchases Sagely Advice to Manage Your Personal Loan Repayment 5 Reasons to Apply for a Personal Loan Future of the Indian Personal Loan Sector Pros and Cons of Top-Up on Personal Loans Tax Deductions on Personal Loans Using Personal Loan EMI Calculator to Find Your Loan EMIs Why Personal Loans are More Popular Than Other Loan Variants? What to Do After Your Personal Loan is Rejected? Be Smart & Save Money by Getting Your Personal Loan Rates Lowered Confused About Why Your Personal Loan Application Got Rejected? Does It Make Sense to Clear Unmanageable Credit Card Dues with Personal Loans? Does It Make Sense to Go for Pre-Approved Personal Loans? Everything About Personal Loan Co-Applicants Advantages and Disadvantages of Applying for a Personal Loan for Wedding 5 Benefits of Tata Capital Personal Loans for the Youth of Today 3 Things to Consider Before Applying for a Tata Capital Personal Loan for Wedding Surprised with Your Low Credit Score? Here is What is Bringing It Down Boost Your Career with Tata Capital Personal Loan for Education A to Z of Tata Capital Personal Loan for Education Forget Dilip Chhabria. Use a Personal Loan to Transform Your Car Into a Custom Head-Turner on Your Own! Fund Your Wedding with Tata Capital Personal Loans All About Tata Capital Personal Loans for Education Avail of Tata Capital Personal Loans in 3 Simple Steps Ways to Get Personal Loan at the Best Rates How Can I Travel in My Twenties? The Kitchen Guide Redoing Your Home - The Bathroom Guide Doing Up Your Bedroom? A Personal Loan Could Help Easy Guide to Giving Your Dining Room a Make-Over The Living Room Guide What Not to Do When Applying For an Education Loan 5 Factors to Keep in Mind When Availing a Personal Loan 5 Financial Implications of Availing a Personal Loan 5 People Who Should have Taken a Personal Loan 5 Personal Loan Tips for Salaried Employees How a Personal Loan Helped Mr Kumar Visit his Daughter Overseas When She was Critically Ill How a PL Helped a Local Football Team Fund Their Kits Does Personal Loan Make Sense If Money Required to Purchase a Used Car is not Much? How I Started a Start-Up at 50 5 Factors to Keep in Mind When Availing a Personal Loan How to Survive the Big Fat Indian Wedding Wedding Loans: Why They are Rising in Popularity Today
How To Calculate EMI On Personal Loan
Suppose that due to some urgent requirement, you borrow Rs 3 lacs from the bank. The personal loan interest rate in your case is 15% and you are paying an EMI of Rs 10,400 per month for a period of 3 years. Whether this amount is correct or not, how much interest is being paid every month, how much principal is being repaid every month are some questions, for which you don't have answers.
So it is in your benefit to understand how banks calculate your loan EMIs.
As you already know, EMI is a fixed monthly amount that you need to pay every month till the loan is cleared off. The biggest benefit of EMI is that you know exactly how much you need to pay every month. This helps in proper planning of your personal finances in advance.
Now the EMI calculations depend on following 3 factors:
- Loan Amount
- Interest Rate
- Loan Tenure
There are several personal loan EMI calculators available online that you can use to calculate your EMIs. Or you can even use a simple formula in MS Excel software.
The function that needs to be used in Excel is PMT. The formula specific to personal loan EMI calculation is as follows:
= PMT [(Annual Interest Rate)/12, Number of EMIs, Loan Amount]
So for instance, the EMI for a principal amount for Rs 3 lacs borrowed at 15% interest for 3 years (36 months) is Rs 10,400.
Now each EMI includes contributions towards both principal and interest on the loan amount. To know more about each part, what is required is a Loan Amortization Schedule. It is a tabular representation of loan repayment schedule along with all details like break up between the interest and principal component of each EMI. One glance at the schedule tells exactly how the loan is being repaid and how much is the exact outstanding left to be paid.
In initial stages of the loan, the interest component forms the major portion of the EMI. But as you progress along, the portion of interest repayment reduces and principal repayment increases.
Since we are talking about Personal loans, it is important to note that personal loans interest rates are generally fixed. So the EMI payment remains constant during the tenure. In case of floating rate loans, the EMI payments also vary with change in rates.
Personal Loans are originated and serviced by Tata Capital Financial Services Limited and are at its sole discretion. Flexi EMIs are applicable for salaried individuals only. Terms and conditions apply.
Recently there have been cases of fraud being committed under the name of Tata Capital or Tata Finance. Customers are requested to read the attached advisory and be aware of misleading advertisements in the newspapers. Click here to read the advisory and be aware of misleading advertisements in the newspapers.