Know How To Calculate EMI For A 3 Lakh Personal Loan
Calculating your EMI before taking any loan is one of the most important steps toward making any financial decision. Through digitalization, calculating EMI for personal loans has become an easy process. Within minutes you can create a plan that works best for you. Here are some steps of calculating a 3 lakh personal loan emi
Personal loans are instruments created to meet your financial demands by allowing you to borrow money as needed and repay it over time to your comfort level and repayment capacity. Getting a 3 lakh loan instantly for any emergency can be stressful. What can be more stressful is calculating a 3 lakh personal loan EMI. Calculating EMI can be difficult, but it can be done easily through different methods or an EMI calculator. There are several ways to get an easy 3 lakh loan.
Calculating, understanding all the terms and conditions of a personal loan might be tough sometimes. Still, with apps like Buddy Loan, easily available in the play store, you can be aware of everything finance.
What is an EMI?
A borrower makes a fixed monthly payment to a creditor on a certain day each month, known as an equated monthly instalment (EMI). The loan is repaid in full over the years, and each month’s EMI covers both interest and principal.
How to calculate a Rs 3 lakh personal loan?
Calculating an EMI can be confusing for a first-timer, but there are several steps that you can take to calculate a 3 lakh personal loan.
Formula to calculate Personal Loan EMI-
Here’s how to calculate your EMI-
The mathematical formula-
EMI = P x r x (1+r)n/ ((1+r)n-1)
P = Loan amount/Principal amount
r = Rate of Interest
n = Loan Tenure (No of months)
For calculating a 3 lakh loan for 5 years, with a 13% interest rate.
If your interest is 13%p.a (0.0108333), for a tenure of 5 years.
EMI = 3,00,000 x 0.0108333 x (1+0.0108333) 60 / ((1+0.0108333) 60 – 1) = 6,826
Note – All debts can be paid off using the universal EMI calculation formula. The three key variables that impact how much an EMI will fluctuate are loan amount, loan period, and interest rate. The principle and interest rate of the loan and the EMI payment are directly inversely associated, which means that when these two variables increase, so do the EMI payments. If the loan is repaid over a longer period, the EMI payments decrease even though the amount of interest paid increases with longer tenures. This is due to the EMI’s inverse relationship with loan tenure.
Knowing your EMI before getting a loan is a big positive leap; it will help you grab what is important and keep you informed about your financial journey. Even then, is it better if some apps or sites would help you calculate, pull out the best personal loan for you and help you in every step of getting a personal loan? Apps like Buddy loan come in handy; you can download the app from Play Store and, within seconds, get all the required information.