|Bank||Lowest EMI per lakh||Max Tenure|
|SBI Personal Loan||â‚¹ 1,919||72 months|
|HDFC Bank Personal Loan||â‚¹ 2,162||60 months|
|ICICI Bank Personal Loan||â‚¹ 2,187||60 months|
|Bajaj Finserv||â‚¹ 2,275||60 months|
|Citibank||â‚¹ 2,149||60 months|
|IDFC First Bank||â‚¹ 2,162||60 months|
|Axis Bank||â‚¹ 2,174||60 months|
|Tata Capital||â‚¹ 1,903||72 months|
|Fullerton India||â‚¹ 2,633||48 months|
|IndusInd Bank||â‚¹ 2,174||60 months|
|Kotak Bank||â‚¹ 2,174||60 months|
|RBL Bank||â‚¹ 2,326||60 months|
|IIFL||â‚¹ 2,275||60 months|
|HDB Financial||â‚¹ 2,326||60 months|
|Andhra Bank||â‚¹ 2,202||60 months|
|Yes Bank||â‚¹ 2,174||60 months|
|Muthoot||â‚¹ 2,327||60 months|
|Standard Chartered Bank||â‚¹ 2,174||60 months|
|Bank of Baroda||â‚¹ 2,149||60 months|
|Union Bank of India||â‚¹ 2,174||60 months|
|Canara Bank||â‚¹ 2,683||48 months|
|Bank of Maharashtra||â‚¹ 2,167||60 months|
|IDBI Bank||â‚¹ 2,224||60 months|
|Allahabad Bank||â‚¹ 2,232||60 months|
|Federal Bank||â‚¹ 2,608||48 months|
|Karur Vysya Bank||â‚¹ 3,321||36 months|
|Syndicate Bank||â‚¹ 2,296||60 months|
|Corporation Bank||â‚¹ 3,367||36 months|
|PNB||â‚¹ 2,199||60 months|
|Indian Overseas Bank||â‚¹ 2,199||60 months|
|Indian Bank||â‚¹ 3,276||36 months|
A personal loan is an accessible credit facility that many people borrow to fulfill credit requirements. These expenses could range from necessities to luxuries, and from a wedding or medical expenses to vacations. However, just like all borrowing, a personal loan needs to be paid back. A personal loan is paid back through personal loan EMIs, which are equated monthly installments paid every month to get rid of the personal loan.
A Personal loan has many benefits associated with it. However, if not paid back on time, it could become a liability and can even impact one’s credit score. Therefore, it is better to be pre-planned with finances to manage the EMIs. This could be done with personal loan EMI calculators. A personal loan EMI calculator calculates the monthly EMI that needs to be paid on a particular loan amount based on the interest rate and tenor of the loan.
Apart from an online personal loan calculator, you can also calculate your monthly EMI with a mathematical formula. The formula to calculate loan EMI is given below-
In the above formula, P is the loan amount that you want to borrow
r is the rate of interest per month
n is the tenure of loan repayment in months
Loan amount – This is the amount that a borrower decides to borrow from the bank in the form of a loan. Higher the personal loan amount, higher will be the EMI.
Rate of interest – This is the interest charged on the borrowed loan amount. Lower the personal loan interest rate, lower the EMI.
Loan Tenure – This is the period for which you take a loan. Longer the personal loan tenure, lower will be the EMI. Longest loan tenure available across banks in India is 5 years, subject to borrower’s current age and retirement age.
The following table provides a comparison of EMI for Rs. 1 lakh loan at different tenures:
|Loan Tenure||2 years||3 years||5 years|
|EMI amount for loan amount Rs. 1 lakh at 10.50%||â‚¹ 4,638||â‚¹ 3,250||â‚¹ 2,149|
|Total amount you pay back to the bank including principal and interest||â‚¹ 1.23 Lakh||â‚¹ 1.36 Lakh||â‚¹ 1.68 Lakh|
|Interest you have to pay over loan tenure||â‚¹ 23,034||â‚¹ 36,470||â‚¹ 67,905|
At the lowest interest rate of 10.50%, the lowest EMI for a tenure of 5 years is â‚¹ 2,149 per lakh. You need to pay an interest of â‚¹ 67,905 on your loan amount of Rs. 1 lakh over 5 years.
If you take a loan for 2 years at the same rate of interest, you will have to pay a higher EMI of â‚¹ 4,638 and total interest of â‚¹ 23,034 on your loan amount of Rs. 1 lakh for 2 years, which is much lesser than what you paid for a 5 years loan.