Loan Calculator: How you can save over Rs 1.50 lakh in interest and 1 year in duration on Rs 20 lakh, 5-year personal loan
Personal Loan Calculation: Personal loans don't have collateral and often come at higher interest rates than home and car loans.
Personal Loan Calculation, EMI, Interest, Repayment: Borrowers take personal loan to fulfil their immediate requirements. They take a personal loan for a number of reasons such as emergency, medical requirement, home renovation. Personal loans don't have collateral and often come at higher interest rates than home and car loans. If you go for a higher EMI, not only you can save amount on interest you can also pay off that loan in lesser duration. Here's how you can save estimated over Rs 1.50 lakh in repayment and 1 year in duration on a Rs 20 lakh, 5-year personal loan.
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Personal loan conditions
Here, we are taking the example of Rs 20 lakh personal loan for 5 years at an annual interest rate of 13 per cent.
What will be EMI?
Given these conditions, the estimated equated monthly installment (EMI) will be Rs 45,506.
What will be interest amount and repayment amount?
The estimated interest on Rs 20 lakh loan will be Rs 7,30,369, and the repayment amount will be Rs 27,30,369.
How one can save on interest
If one goes for a higher EMI, they can save a lot on interest. In this case, if one goes for Rs 53,655 EMI, see what can happen
How it will impact your loan amount
An increase of Rs 8,149 in the EMI can reduce your total estimated interest to Rs 5,75, 440, and the estimated repayment amount to Rs 25,75,440.
What will be your new loan duration?
With an increase in EMI, you will be able to repay your loan in just 4 years.
How much money you will save?
You earlier estimated repayment amount was Rs 27,30,369, while the new estimated repayment amount is Rs 25,75,440, so you will save an estimated Rs 1,54,929 on the repayment.