Fullerton India is one of the most reliable lenders when it comes to fuelling urgent cash requirements. Personal loans are unsecured loans without any end-usage restrictions, i.e. you can take a loan at any time for any cause. Fullerton India offers you instant personal loans that are disbursed directly to your bank account. These loans help you achieve your dreams in a budget friendly manner.
Since a personal loan is unsecured, the interest rates are on the higher end. Therefore, you must take into account your repayment capacity and choose the loan term carefully. But how do you decide? Use the Fullerton India personal loan EMI calculator to analyze all the factors before applying for a personal loan.
What is EMI?
An EMI or equated monthly installment is an amount you pay every month to repay the loan. When you choose your tenure, the interest is added to your principal amount based on the interest rate and compounded over the months of your term for convenience. The interest is always calculated on the principal amount outstanding, so it is maximum in the initial period and reduces gradually according to the payments you make during the tenure.
Now, calculating your EMI, even with an EMI calculator can be a tad confusing. In this blog, we go over each component of an EMI calculator and show you how to use it before you borrow a personal loan from Fullerton India.
What is a Personal Loan EMI Calculator?
With an EMI calculator, you can calculate the monthly amount you need to pay off your loan. Fullerton India’s personal loan calculator is available on the website for your ease. The EMI calculator also doubles as a loan interest calculator. You can find out about the total interest you pay if you apply for a certain amount or the interest due if your loan is ongoing.
There are three factors which are used by the personal loan calculator to calculate your EMI:
- Principal amount: The principal amount refers to the amount you require as a loan. It is the primary factor on which your EMIs are based. If you apply for a lower amount as a loan, your EMIs will be lower. If you apply for a higher amount, your EMIs will be higher. Especially when it comes to personal loans, it is crucial that you only apply for a necessary amount or else you will be paying interest on the money you don’t need.
- Tenure: The loan tenure is the period by which you should pay off the loan. EMIs and loan tenures are inversely proportional. In other words, a shorter tenure increases your EMI amount while a longer tenure reduces the EMI amount making it easier on your budget. But a longer tenure accrues more interest, making your loan more expensive. So, choose accordingly.
- Interest rate: The interest is the charge a lender levies for lending you the money. It is based on a rate which is directly proportionate to your amount. If the amount is higher, the interest rate will rise as it poses a higher risk for the lender. Your repayment capacity and credit score also help determine the interest rate for a personal loan. A lower credit score and repayment capacity will increase your interest rate. However, the personal loan EMI calculator is based on the standard rate mentioned on the website.
Personal loan EMI calculator uses the formula mentioned below to calculate your EMI:
EMI = P × r × (1 + r)n/((1 + r)n – 1)
E is EMI
P is the Principal Loan Amount.
R refers to the rate of interest per month. If the interest rate is per annum, then the rate of interest = interest / (12 x 100).
N refers to the loan tenure period or the duration to repay the loan (in months).
For example, if you are seeking a loan of Rs. 5,00,000 for a repayment tenure of three years at an interest rate of 12 per cent per annum, your EMI will be Rs. 16,607.
Steps to Use Fullerton India’s Personal Loan Calculator
- Log on to Fullerton India personal loan EMI calculator.
- Select the loan amount you need. The maximum limit for Fullerton India personal loan is 25 lakhs.
- Choose a repayment tenure of up to five years or 60 months for a personal loan.
- Finally, set the ‘Rate of Interest’.
You can use the slider for each of these components to decide the most suitable amount for you.
This Personal Loan EMI Calculator will help you arrive at an amount you can comfortably pay every month towards your loan and decide the tenure accordingly.