Personal Loan EMI Calculator

MybankingTips Personal Loan EMI Calculator helps you figure out the best tenure and EMI for your personal loan. It quickly calculates EMI, interest costs, and the total amount payable for different loan amounts, interest rates, and tenures. Knowing your EMI beforehand helps you plan your finances before getting a personal loan. Keep in mind that most lenders may not approve a personal loan if your total EMI payments, including the new loan's EMI, are more than 50% to 55% of your monthly income.

Note: Interest rates as of December 2024

If you miss your personal loan EMI(s) payments, you may incur additional charges on top of the actual EMI amount:

1. Penal Interest Charges:

• Also known as overdue interest charges.
• Levied on the overdue EMIs until they are repaid.

2. Cheque/NACH/SI Bounce Charges:

• These charges are Applicable when a personal loan EMI payment fails due to insufficient account balance or the closure of the account used for payments.
• Typically a fixed charge imposed each time an automated EMI deduction fails or a post-dated cheque bounces.

Yes, even though your personal loan EMI is typically a fixed amount, it can change during the loan tenure under certain circumstances:

• In case of loan prepayment: After prepaying your personal loan, you have two options: either decrease your monthly payments for the remaining period or reduce the overall loan duration while keeping the same monthly payments. If your current monthly payments are putting a strain on your finances, you can opt to lower them. However, choosing to shorten the loan duration is generally better as it reduces the total interest you'll pay over the life of the loan.
• In case of rate change in the floating interest rate: Certain lenders provide personal loans with a floating interest rate, connected to their external benchmark rates. When these benchmark rates change, the applicable interest rate also changes. If the floating interest rate rises and the borrower agrees, the lender might extend the loan tenure while maintaining the same EMIs. However, if the new tenure surpasses the maximum allowed period, the lender may opt to increase your EMI.

The main things that impact the total EMI you pay are:

1. Loan Amount: If you borrow more for your personal loan, your monthly payment (EMI) will be higher, assuming the interest rate and loan duration stay the same.

2. Interest Rate: A higher interest rate means higher monthly payments (EMI) and a greater total interest cost over the loan period.

3. Loan Duration: Choosing a longer repayment period results in lower monthly payments (EMI), but it increases the total interest you pay.

To decrease your personal loan EMI payments, you can:

1. Make Prepayments: Whenever you have the opportunity, consider making partial prepayments. This involves paying off a portion of the outstanding loan amount early. You then have the option to either reduce your monthly EMI or shorten the loan tenure. Opt for lower EMIs only if you find it challenging to meet your current payments. Otherwise, reducing the tenure is a wiser choice as it helps you save more on the overall interest cost of the loan.

2. Transferring your personal loan: Another option is to transfer your personal loan to a different lender that offers lower interest rates. Some lenders might also provide a longer tenure for personal loan balance transfers. Before deciding on a balance transfer, conduct a thorough cost-benefit analysis to ensure that the amount saved on interest is significantly more than the costs associated with the loan transfer. You can use an online EMI calculator for a personal loan to assess potential savings on your EMIs before opting for a balance transfer.