How to calculate personal loan EMI instantly?

Personal loans are one of the convenient credit facilities to avail and are a great help during financial emergencies. These loans can be even availed instantly with the advent of the digital lending process. Before availing a personal loan, it’s important to consider various aspects including the interest rate and repayment schedule.

Repaying a personal loan is similar to that of other loans and calculating the Equated Monthly Instalments (EMIs) is important to determine your monthly expenditure plan. Calculating EMI amount in advance helps you to adjust your monthly budget and to avoid unnecessary financial burden.

Manual calculation of EMI could be erroneous and taking help of an online EMI calculator is advisable.

What is a personal loan?

Before understanding how to calculate a personal loan EMI instantly, let's first know different aspects of a personal loan. A personal loan is an unsecured loan, which means that it doesn't require any collateral or guarantor. However, the lender can initiate a credit check to keep their risks under check. One can avail the loan in less than a day and it serves as a great option when funds are needed urgently. The loan repayment tenure for personal loans is less compared to secured loans and the amount provided is also lower compared to other loans.

How to calculate personal loan EMI instantly?

There are several websites that offer the facility to calculate personal loan EMIs instantly. Many banks, such as HDFC Bank and Axis Bank among others, offer this service. In addition, several trading platforms as well as non-banking finance companies (NBFCs) also offer online EMI calculators. It just needs you to enter a few details and the accurate EMI amount would be displayed. The formula used by these websites for EMI calculation is:

Also, you can use an instant EMI calculator to ascertain your monthly repayments before applying for a loan. You can estimate the rate of interest and the tenure according to industry standards to get an estimate of the EMIs that would be due every month after availing the loan. This can be helpful in pre-planning your monthly expenditures to avoid any default in loan repayment.