Friday, March 24, 2023
  • About
  • Advertise
  • Careers
  • Contact
Top Market Usa
  • Home
  • News
  • Politics
  • Business
  • Culture
  • Opinion
  • Lifestyle
  • Login
No Result
View All Result
Top Market Usa
Home Business

What Is A Personal Loan EMI? And How Does It Work In India

perfect seo by perfect seo
February 28, 2023
in Business
0
Personal Loan

Personal Loan

0
SHARES
10
VIEWS
Share on FacebookShare on Twitter

Personal Loans are being offered by various banks, lending institutions, and non-banking financial companies (NBFCs) at attractive interest rates. These loans are unsecured, meaning lenders don’t require collateral to lend you funds. Personal Loan repayment works in the form of Equated Monthly Instalments (EMIs). You must pay Personal Loan EMIs every month over your loan tenure to repay the borrowed amount. 

Your Personal Loan EMI depends on three factors, your loan amount, your loan tenure, and the interest rate offered to you. The loan amount Is the first and foremost determinant of your EMI. If your loan amount is on the higher side, your EMI amount will also be higher. The interest charged on your loan also impacts your EMI in the same way. Similarly, if your loan amount is lower, the EMI amount will also be low. 

Related posts

GLOBAL LESSORS OF NONFINANCIAL INTANGIBLE ASSETS MARKET SIZE, STATUS AND FORECAST 2021-2030

March 3, 2023
add a solarium to your Toronto home

Bring Light to Your Home with a Sunroom or Solarium

March 2, 2023

However, your loan tenure impacts your Personal Loan EMIs in a different manner. The longer the loan tenure, the lower will be your EMIs as compared to a shorter loan tenure. In addition to this, the more interest you pay, the higher will be the EMI. 

How is Personal Loan EMI calculated?

Simply knowing about the factors considered while calculating your monthly EMIs is not enough. You also need to understand how Personal Loan EMI is calculated by the lenders. You might have wondered how lenders come up with a monthly figure for your payments and you might have wanted to recheck it. 

The principal figure of your monthly EMIs changes as you make payments every month. The interest rate is charged on it accordingly. Hence, the interest calculation works on the reducing balance method. Below is the mathematical formula used to calculate EMIs. 

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

Here, P= loan amount or principal 

R= interest rate per month 

N= number of monthly instalments 

In case you don’t want to calculate your EMIs manually, you can use the formula tab on Excel. The formula you need to put in is 

=PMT(rate,nper,PV, fv, type) 

where,

rate = interest rate that is applicable to the loan

nper = total number of payments 

PV = principal amount

Fv = optional field

Type = optional field. Set to 0 if the payment is due at the end of the period and set to 1 if the payment is due at the beginning of the period

In addition to this, there are numerous EMI calculators available online. You can use easily find a Personal Loan EMI calculator online. The tool is easy to access and gives out automated results. You just have to enter your loan amount, loan tenure, and the interest rate offered to you by your lending institution. The online EMI calculator will give out an approximation of your monthly EMI amount. 

Please note that the automated EMI amount is just an approximation of your monthly payments. Your EMI amount may vary as per your lender’s terms and conditions. 

How does Personal Loan EMI work in India? 

EMI is the most systematic way of repaying your loan. When lenders give you funds, they also charge interest on the amount. The interest is charged to safeguard the lender and compensate the lender for the risk involved in lending money. It also acts as remuneration to the lender for facilitating the lending process. 

The borrowed amount is paid through monthly payments over a pre-determined period, i.e., your loan tenure. The disbursal of the loan is done in one go, but the repayment happens every month in the form of monthly instalments. Your EMI contains the principal amount and the interest amount.  Each month, the pre-decided interest rate is charged on the reduced principal amount, which generates the interest amount.

To conclude

Personal Loans are unsecured credit products that are great for covering emergency expenses. When you borrow funds from a lender, you are supposed to repay the funds via equated monthly instalments (EMIs). 

Your monthly EMIs are calculated based on three factors, your loan amount, loan tenure, and the interest rate offered to you. You can also use an online Personal Loan EMI calculator to determine your EMIs before you apply for the loan. This will help you create a monthly plan for your finances so that you don’t miss out on any monthly payments. 

However, it is important to note that the online EMI calculator gives out an indicative amount. The amount given out by the tool will not be your exact EMI amount. Your actual EMI amount will depend on your lender’s terms and conditions and other factors. 

Tags: Personal LoanPersonal Loan EMIPersonal Loan EMI calculator online

POPULAR NEWS

  • A Look At The Fortitude Of The Nightborne Armor Set In Battle For Azeroth

    A Look At The Fortitude Of The Nightborne Armor Set In Battle For Azeroth

    0 shares
    Share 0 Tweet 0
  • What is all there is to Understand about Norstrat Consultancy?

    0 shares
    Share 0 Tweet 0
  • 100% Free – Convert Youtube Video To MP3 On Y2Mp3

    0 shares
    Share 0 Tweet 0
  • Various Methods to Maintain Your Health and Fitness

    0 shares
    Share 0 Tweet 0
  • Interesting Facts about Online Assignment Help That Every Student Know 

    0 shares
    Share 0 Tweet 0
Top Market Usa

We bring you the best Premium WordPress Themes that perfect for news, magazine, personal blog, etc.

Follow us on social media:

Recent News

  • GLOBAL LESSORS OF NONFINANCIAL INTANGIBLE ASSETS MARKET SIZE, STATUS AND FORECAST 2021-2030
  • GLOBAL INTERACTIVE TEACHING SOFTWARE MARKET SIZE, STATUS AND FORECAST 2023-2030
  • Bring Light to Your Home with a Sunroom or Solarium

Category

  • Business
  • Culture
  • Digital marketing
  • Food
  • Health
  • Lifestyle
  • National
  • News
  • Opinion
  • Politics
  • Sports
  • Technology
  • Travel
  • Uncategorized

Recent News

GLOBAL LESSORS OF NONFINANCIAL INTANGIBLE ASSETS MARKET SIZE, STATUS AND FORECAST 2021-2030

March 3, 2023

GLOBAL INTERACTIVE TEACHING SOFTWARE MARKET SIZE, STATUS AND FORECAST 2023-2030

March 3, 2023
  • About
  • Advertise
  • Careers
  • Contact

© 2022 Top Market Usa - Premium News Site & Site Create by eseostrategy.

No Result
View All Result
  • Home
  • Politics
  • News
  • Business
  • Culture
  • National
  • Sports
  • Lifestyle
  • Travel
  • Opinion

© 2022 Top Market Usa - Premium News Site & Site Create by eseostrategy.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In