It is always advised have space for emergencies funds in your monthly budget to help yourself during the times of uncertainties. At times, it is easier said than done. Not everybody can plan for emergency funds before they need them. Banks have come forward to help the people in such scenarios by offering the personal loan. Why should you bother lending funds from friends and relatives or pledge something to provide a financial aid during the times of contingencies when the personal loan is easily available. Personal loan seekers are benefited with easy and quick approval. As these loans are unsecured in nature, you just need to showcase your repayment capability to avail a loan. When you think to fill the financial gap by taking the unsecured loan, you might want to figure out the EMI that you are going to pay towards the repayment of the loan. Keep reading to how your personal loan EMI would look like.
Guide For calculating Personal Loan EMI
Know loan amount
Once you have decided quick loan as your financial rescue, decide on the loan amount you want to avail and enter it online in EMI calculator. Though you have planned to avail a good deal of money though cash loan, banks will be ready to sanction the desired amount only based on your repayment capability. Your credit score is another important factor considered by them before approving the loan.
Tenure of the loan
Another factor that decides the EMI of your cash loan is tenure of the loan. In most of the bank’s maximum tenure of the repayment of the loan is 5 years. You can choose the tenure based on your repayment capacity. Longer the tenure, lower will be the EMI of the loan. Choose the tenure that does not create a crisis over the repayment period.
The third important factor that decides EMI of the loan amount is a rate of interest. As unsecured in nature, the rate of interest on these loans is high when compared to other types of loans. These interest rates vary for each lending institution and are also charged differently based on customer profile like salaried, self-employed, location and many other factors. Higher the credit score, good are the chances of fetching the loan at best interest rate.
This is a non-refundable fee charged by the banks on the personal loan process. They may stand somewhere between 0.5% to 2% which add significant cost to your loan amount.
After entering all this mandate information on the online calculator, it will show up the EMI that you are going to pay the lender every month towards the loan.