Do you want to trim your personal loan EMI from Rs 22,753 to Rs 17,022 and save Rs 2 lakh on Rs 10 lakh loan? Know how it is possible
Personal Loan Calculator: Many times, when we are in need of money and can't arrange to take debt or help from some known person, we take a personal goal. We take such a loan to accomplish our goals such as home renovation, wedding, vacations, emergencies, medical expenses, or vacations. Since there is no collateral involved in personal loans, lenders disburse it at a higher interest rate. It can be more than 12 per cent. Here, we tell you how a prepayment of Rs 1 lakh on a Rs 10 lakh 5-year loan can slash your EMI by Rs 5,731 and duration by 13 months.
Photos: Unsplash/Pixabay
Personal loan conditions
Here, we are taking the example of a personal loan of Rs 10 lakh for 5 years (60 months). The interest rate for the loan is 13 per cent annually.
Personal loan EMI
At that rate, the estimated equated monthly instalment (EMI) for the loan will be Rs 22,753.
Personal loan Interest amount
For a Rs 10 lakh personal loan, your estimated interest amount in 5 years will be Rs 3,65,184.
Personal loan prepayment conditions
Here, you need to make 12 EMIs for the loan, and in the 13th month, you need to make a Rs 1 lakh prepayment. After the prepayment, your remaining principal will be Rs 7,48,125.
How it can impact your personal loan
After prepayment of Rs 1 lakh, your new estimated EMI will be Rs 17,022, and the tenure will be cut down to 47 months.
How much money will you save in a month?
Since you were paying a Rs 22,753 EMI earlier, the new personal loan EMI will help you save Rs 5,731 a month for the remaining 35 months.
How much money will you save overall?
In 35 months, you will save an estimated amount of Rs 2,00,585.