The Piramal Finance personal loan EMI calculator is a valuable and free tool that lets you figure out the EMI amount you will have to pay every month. It considers the principal amount, interest rate, and loan tenure to tell you how much you need to pay monthly. A useful tool to plan out the inflow and outflow of funds ensures that you never run out of cash to make EMI payments.

How to Calculate Personal Loan EMI

If you want to calculate the EMI of your personal loan, you should use the Piramal Finance Calculator. It is easy to use and provides results instantly. You will need to provide the necessary information to use our EMI calculator online for personal loan.Principal Component: Mention the amount you intend to borrow.

• Principal Component: Mention the amount you intend to borrow.
• Rate of interest: Specify the rate of interest charged by your lender.
• Loan tenure: Enter the duration over which you intend to repay the loan.

While you can always use the mathematical formulae to determine your personal loan EMIs, using the Personal Loan Calculator helps save time. Moreover, you will also be able to eliminate the scope of mistakes by using the calculator.

Formula to Determine Personal Loan EMI

The formula to calculate the EMI amount of personal loan is as follows:

EMI= [P x Rx (1 + R)^ N]/[(1 + R)^ N - 1]

Here, P refers to the principal component, R means the ROI, and N signifies the number of months you have to repay the loan.

These values are variable. Therefore, the EMI amount will change every time these values change.

Let us consider an example to understand how the formula helps with personal loan EMI calculation. For instance, you have borrowed a ₹ 10 lakh personal loan at an interest rate of 17%. The loan tenure is 3 years or 36 months. Since you will be paying the EMIs on a monthly basis, you need to calculate the duration in months.

In this case, P = ₹ 10 lakh, R = 17%, and N = 36 months. So, your EMI will be calculated as follows:
[10,00,000 x 17/ 100/ 12 x (1+ 17/ 100/ 12)^ 36] / [(1+ 17/ 100/ 12)^ 36- 1]

Therefore, the EMI will be Rs 35,653

Calculating personal loan interest manually is complex. You should use a Personal Loan Calculator.

Factors Affecting Personal Loan EMI

Following factors determine the loan EMI.

• Loan Amount: The higher the amount you borrow, the higher your EMIs will be. Similarly, your EMIs will be lower when you have borrowed a lower amount.
• Loan Tenure: While using the calculator, you will realize that the EMIs are lower when the tenure is longer.
• Interest Rate: The interest gets accumulated on the principal amount to determine how much you will have to repay. Therefore, a higher interest rate will increase your EMIs considerably.
• Credit score: The credit score shows whether you will struggle with loan repayment. A low credit score makes you a risky borrower, and lenders might not agree to lend you the personal loans at low-interest rates. Therefore, maintain a credit score of more than 700to keep your EMIs lower.
• Nature of employment: The lender will check whether you are a salaried professional or a self-employed individual before determining your personal loan EMI amount.
• Employer's record: Lenders will check the record of your employer before giving you a personal loan. For instance, they will check whether you work in a government institution or in the public or private sector.
• Monthly income: Lenders will assess your monthly income before providing you with a personal loan. You will be able to avail of loans with lower EMIs when you have a steady source of income. You should try adding all your income sources to receive a personal loan with lower EMIs.
• Age: Older people, especially the ones nearing or over retirement age, are more likely to default on EMI payments. Therefore, EMIs become costly as you grow older. After a certain age, it will become extremely difficult for you to qualify for loans because you don't have any steady income.