Personal loan: This EMI calculator will help you calculate payments across tenures — a look at different scenarios | Mint

If you are planning to raise a personal loan, you may use a personal loan EMI calculator to ascertain the exact EMI you stand to pay across different interest rates.

If you are short on money and do not have many options, it is advisable to check your personal loan eligibility. Typically, most borrowers opt for personal loans for a number of purposes.

The reasons could be as varied as a wedding, a renovation at home, a vacation plan, buying a luxury item for a loved one, an emergency – or something else.

However, it is vital to note that raising a loan carries a number of nuances such as choosing the right lender, accepting the interest rate that you can afford to pay, and repayment of loan within the right tenure.

If you are worried about the calculations with respect to this, there is help at hand. You can use a personal loan EMI (equated monthly instalment) calculator.

Here are a few scenarios to explain how it can be done.

Scenario I: You take a ₹10 lakh loan for 10 per cent interest and plan to repay it in five years. In this case, the EMI will be ₹21,247. However, if you want a smaller EMI, then you need to stagger it over a longer period. Check scenario II for this.

Scenario II: You take a ₹10 lakh loan for 10 per cent interest and plan to repay it in six years. Here, the EMI will turn out to be ₹18,525.

However, if you want to repay the loan quickly, then you can do so in, say, three years. Check scenario III for this.

Scenario III: If you take a ₹10 lakh loan for 10 per cent interest and plan to repay it in three years, the EMI will increase to ₹32,267.

Suppose you want to repay quickly, but can’t afford to pay this high EMI, the only other option would then be to reduce the loan amount. Check scenario IV for this.

Scenario IV: If you take a ₹8 lakh loan for 10 per cent interest and plan to repay it in three years, the EMI will fall to ₹25,813.

(Note: Remember that raising a personal loan comes with its own risks)