If you are planning to take a personal loan, you can use a personal loan EMI calculator to determine the exact EMI you will have to pay at different interest rates.
If you are short on money and don’t have too many options, it is advisable to check whether you qualify for a personal loan. Normally, borrowers opt for personal loans for a number of purposes.
The reasons can be as diverse as a wedding, a home renovation, a plan to go on vacation, the purchase of a luxury item for a loved one, or an emergency – or anything else.
However, it is vital to note that taking out a loan involves a number of nuances such as choosing the right lender, accepting the interest rate you can afford to pay and repaying the loan within the correct period.
If you’re concerned about the calculations on this, help is available. You can use an EMI (equal monthly installment) calculator for personal loans.
Here are a few scenarios to explain how this can be done.
Scenario I: If you have a ₹A loan of Rs 10 lakh at 10 percent interest and plans to pay it back in five years. In this case the EMI will be ₹21,247. However, if you want a smaller EMI, you need to spread it over a longer period of time. Consider scenario II for this.
Scenario II: If you have a ₹10 lakh loan at 10 percent interest and plans to pay it back in six years. Here it will turn out to be EMI ₹18,525.
However, if you want to repay the loan quickly, you can repay it in, for example, three years. Check scenario III for this.
Scenario III: If you have a ₹10 lakh loan at 10 percent interest and planning to repay it within three years, the EMI will increase to ₹32,267.
Suppose you want to make quick repayments but cannot afford this high EMI, then the only other option is to reduce the loan amount. Consider scenario IV for this.
Scenario IV: If you have a ₹8 lakh loan at 10 percent interest and planning to repay it within three years, the EMI will come down to ₹25,813.
(Please note: Please note that taking out a personal loan comes with its own risks)
