# A Quick Guide to Personal Loan EMI Calculator

Whenever we talk about loans, the first thing that comes across in mind is EMI. The abbreviation, EMI stands for Equated Monthly Installment. It is a sum that a loan borrower is liable to pay every month in the subject to repay the loan.

The EMI amount is calculated in such a way that the loan interest is higher during the initial months and gradually reduces with each payment. There are three factors used in personal loan EMI calculation:

• Principal amount: This is the base amount that is borrowed by the customer as a loan. It may differ from lender to lender based on their evaluation of the customer’s profile.
• Rate of Interest: The interest rate is the percentage levied on the principal amount. This may vary based on the lender to lender.
• Loan Tenure: The loan term or duration, is also commonly referred to as “repayment tenure” is the period for which a loan is sanctioned. The borrowers are supposed to pay the principal sum and the total interest within the sanctioned period.

Online Personal loan EMI Calculator

While you can surely calculate the EMIs manually and using Excel, there is an even simpler way to do it using the online Personal loan EMI calculator. This would tell you to calculate the exact amount you need to pay every month within a few seconds.

With the EMI calculator, you just need to enter the loan amount you are looking for and then analyze the available offers based on the monthly EMI. And select the one which would be comfortable for you to pay.

Benefits of using a Personal Loan EMI Calculator

• Convenient to use – It ease you with the calculations as compare to the calculations done by hand with pen and paper. In a matter of few, you can decide on the loan proposal by taking advantage of an EMI calculator.
• Exact Amount– If you were to do calculations with a pen or paper, you may do pretty mistakes while entering the rate of interest, tenure, loan amount, etc. But, with an online EMI calculator, you can perform these calculations with accuracy and can get the exact amount.
• Quick Solution – Manual EMI calculation will take hours and hours. But, with an online EMI calculator, you can perform this task at a few clicks of the mouse. You don’t have to check and recheck the calculations each time with the online EMI calculators.
• Specific Result – One of the biggest benefits of an online EMI calculator is that it gives a specific result based on the loan amount, repayment tenure and interest rates.
• Graphical Representation – Most of the online personal loan EMI calculators would not only provide information related to the loan. But also, graphically provide the information and present a pictorial representation of every data point like principal outstanding, time remaining, rate of interest, etc. this acts as a feather on the cap for the personal loan EMI calculator.

Tips to manage the Personal Loan EMI

While availing a personal loan, it is equally important to manage the EMIs well. At times, it gets difficult to manage the paying of EMI’s which may adversely affect the credit score. Here are some tips which may help you in managing your loan EMI:

• Ascertain the repayment capability: You should always acquire only that much personal loan as much you can afford the paying off every month. An online personal loan EMI calculator helps to calculate the personal loan EMIs better. By doing this you would know in advance about the EMI and you can make a better and informed decision.
• Manage personal expenses: If you have an existing loan, and applying for another personal loan, you should first check the amount you would require to pay as EMIs for all the loans. The sum of the total requires amount should not be more than 50 % of your monthly income. And also look for another source of income. As then only you can manage your expenses for daily necessities and other personal expenses smoothly.
• Never miss on an EMI: The regular payment of the EMI can help you to have a good credit score. As this would lead to getting personal Loan from HDFC bank personal loans at comparatively lower Personal Loan interest rates. Therefore, always try to maintain a good credit score by paying off all debts like credit card bills, existing loans, etc. on time so that you can get a good personal loan deal. Timely payment of the EMIs is important.
• Go for a longer repayment tenure: Your loan repayment tenure has a direct impact on the EMI amount of your loan. Opting for a longer repayment tenure will enable you to repay the total amount over a longer time, which will reduce the EMI amount.

The procedure of using a Personal Loan EMI Calculator

Various personal loan lenders offer free of cost online EMI calculators. The features or usage of an EMI calculator may differ from lender to lender. Generally, three things are required to calculate the monthly EMI on a personal loan EMI calculator. Those are:

• Loan Amount
• Rate of Interest
• Repayment Tenure

After deciding the required loan amount, you can use an EMI calculator to determine the appropriate EMI as per his/her monthly income. The process of using an EMI calculator may differ but the most used and generic steps of using a personal loan EMI calculator is given below:

• Step 1: Visit any online EMI calculator.
• Step 2: Enter the required Loan amount.
• Step 3: Input the rate of interest on the loan amount.
• Step 4: Enter the loan repayment tenure.
• Step 5: Click on the submit button and you will get the result instantly.

Lastly, a personal loan EMI calculator is a handy tool that facilitates the EMI calculation. As earlier in the absence of this online tool, the calculation process used to be long-drawn and complex. But now when you are getting something with such ease at free of cost so why should not make the most of it. As for calculating EMI is one of the important steps towards getting the best suited personal loan deal.