Personal loan: EMI calculator helps you streamline your finances; check how | Mint

Are you planning to raise a personal loan and struggling to streamline your finances at the same time? Are you unsure as to how much tenure you should opt for to make a commitment for an EMI that you can afford to pay.

Well, you are not alone in this dilemma. In such a scenario, you should use the Personal Loan EMI Calculator that can help you compute the monthly instalment. For this, you only need to enter three key details: loan amount, tenure and rate of interest.

Loan amount: This is the amount of loan that you want to raise. If you plan to raise a total of ₹5 lakh, you need to enter this in the section for loan amount.  

Tenure of loan: The loan tenure refers to the time period for which loan has been taken. For example, if you have a loan for 5 years, the tenure would be 5 years. 

Rate of interest: This is the annual interest charged by the bank from the borrower. If the bank is charging 10 percent per annum from the borrower, the interest rate would be 10 percent. 

For example, if you raised a personal loan worth ₹5 lakh over a period of five years at an interest of 10 percent. You can enter the following details in the EMI calculator.

Interest rate: 10 percent

The personal loan EMI calculator will give this output in this scenario: 10,623.

EMI calculator: These are some of the key advantages 

1. Planning: It helps plan your monthly budget. You can know this in advance how much you need to spend every month to service the loan. 

2. Impact on instalment: By changing the tenure and interest rate, you can ascertain the impact on the monthly instalment.

3. Total interest: It also tells you the total outstanding interest over the loan tenure.

4. Hit and trial: You can carry out a set of calculations to find the optimum tenure and interest at which  you will get the EMI that you can afford to pay.