A personal loan is one of the best components that is used to get rid of the cash crunch, especially to accomplish some distinct function, to purchase some necessary items for the home, or to manage unexpected expenses that cannot easily be solved with your salary or income whatever you have. In that case, you need to go for a personal loan and at that time, many people are worried about the rate of interest and other fees that directly affect their repayment. At that time, you need to know the details, especially how to calculate your personal loan EMI and interest rate. Hereafter, some steps have been explained to accomplish the calculations.
Get assured about the personal loan rate of interest
If you are willing to apply for a personal loan and want to convert the loan amount in different EMIs, you need to fix your loan amount and tenure in which you are comfortable to repay the loan amount. The loan amount in proportion to your salary and credit score can be chosen from your side, whereas the rate of interest for a personal loan is fixed by the lenders which is applied on a per annum basis. So, after getting ensured about the loan amount, tenure, rate of interest and interest, you can proceed with the calculation part, and these are the following.
Calculation of EMIs
Once we get all the components related to the personal loan we need to use the formula to calculate the EMIs and understand the calculation process for the same. The EMI calculator formula is as follows,
P is the personal loan Amount
R is the Rate of Interest
N is the number of EMI or tenure which is calculated every month.
So if we are calculating the loan amount RS. 10,00,000, for the tenure of five years i.e., the number of EMIs 60, and the rate of interest is 11% then, you need to calculate the EMIs by inserting the values like that
EMI Amount = [P x R x (1+R)^N]/[(1+R)^N-1]
[10,00,000x 11/12/100 x (1+11/12/100)^60]/[(1+11/12/100)^60-1]
Calculating all these carefully helps you get the EMI amount that must be paid on a monthly basis. And it’s not so difficult. To accomplish the calculation, you need to get the rate of interest and divide the interest rate by twelve and a hundred as the rate is applied on a per-annum basis and you need to get the EMIs per month. Therefore, after the calculation, your monthly EMIs will be RS. 21742.
If you are willing to apply for personal loan and want to acquaint yourself with all its factors, especially the amount of interest that must be paid from your side, you can calculate the EMIs and be assured about the total cost. However, every lender provides a loan EMI calculator for the convenience of their customers where you need to enter the loan amount, tenure and rate. So, once you get confirmation about the rate of interest, you will get an explicit idea of the total cost. Get a personal loan in Delhi NCR with an online application process that makes your borrowing easy and comfortable. We are providing an instant loan for instant financial support so that you can solve your requirements easily.