EMI is the abbreviated form for “Equated Monthly Installment” or the sum that is payable each month if you practice a personal loan of a specific amount for a specified period. The prediction of EMI is conditional on 3 main factors:
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Personal Loan Sum– The value of the loan that you choose.
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Personal Loan Interest Rate – The interest rate that the lender will accredit for the Loan.
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Duration of Personal Loan – The duration for which you receive the Personal Loan.
EMIs in a loan is Equated Monthly Installments. It is completely the monthly owed sum on your loan until the completion of the tenure.
Personal Loan EMI Calculator in Excel
In MS Excel, EMI is determined by the use of PMT. This use in Excel performs its easy use of the equivalent three variables as outlined above with somewhat different figures. These numbers incorporate NPER, RATE & PV. The method that you’d need to enter in Excel would be =PMT(rate, nper, PV) Let us imagine this with an example. Think Rahul gets a personal loan of Rs. 5 Lakh at an interest of 12% per annum to be repaid in EMIs of 5 years.
In this situation, the PV should be 5 Lakh, the repeated RATE should be 12% for 12 (months) = 0.01, and the NPER would be 5*12 (months) = 60 months.
Hence, the specifications that you will enter in Excel would be =PMT(0.01, 60, 500000) = INR 11,122.22
The outcome will emerge in red and negative recommending the total outgo for the borrower.
Assessing Loan EMI Manually
For determining EMI on personal loan manually, you will require to insert the formula
EMI formula [P x R x (1+R)^N]/[(1+R)^N-1]
Hence, P is the Principal Value or the Loan Sum, R is the Rate of Interest monthly, and N is the duration or the term.
Loan EMI Calculator Online
Whilst, you can certainly calculate the EMIs on a loan manually and utilizing excel, there is a yet simpler way to solve it practicing the online Personal loan EMI calculator of the supposed lender. This will serve you to calculate the number you need to repay each month in line to fully pay the acquired loan quantity inside the chosen term. With the online calculator, you can enter the sum of loan you are watching for and then scrutinize the options possible based on the repeated EMI value that would be suitable for you to pay. Utilizing app and web programs, you can implement profitable personal loans online of up to INR 3 Lakh inside a few moments from the solace of your office or home. In merely three clear measures, your loan would be approved and distributed inside a few hours right within your bank account. With prompt consumer support and no concealed charges, Allahabad Bank Personal Loan is your best option for easy, instant, and hassle-free personal loans.
