Personal loan is generally an unsecured loan that people borrow in times where they need money for the shorter duration to meet some unforeseen expenses. As people require the money urgently many times they do not evaluate the decision to take the persona loan and go for the bank that gives them the personal loan the fastest or the first bank they spoke to. However the principles of lending apply to personal loan as well and you can end up SAVING a lot of money by choosing your loan wisely.
When you choose your loan it is important for you to focus on the interest and tenure of the loan. The cheaper interest rate you can get for your personal loan the better it is for you. Input all the offers of interest rates in the personal loan EMI calculator and see how much money you save for each option.
The time period for which you take the loan is the second most important factor for you to consider. This directly influences the amount of interest paid for the loan. If your personal loan for Rs. 10,000 at 16% is for one year or for three years the total interest paid will differ a lot. The one-year loan will have a lower total interest paid to the bank.
Therefore use the mymoneykarma.com personal EMI calculator to find the best personal loan option for you.
Equated Monthly Installment (EMI) is the amount that you pay every month to the bank or any other financial institution for a loan that you have taken from that institution.
EMI is made up of two components 1) The interest on loan 2) The portion of the principal amount to be repaid.
The EMI is paid monthly and is a constant amount for the duration of the loan. However the part of the amount of the EMI that goes to pay the interest and the principal changes over the tenure of the loan. As a rule of thumb, you will pay more principal with each subsequent EMI than what you paid in the previous EMI. Towards the last 25 % of the EMI you will pay a lot more principal than the interest.
EMI is calculated with the basic formula:
E is EMI
P is Principal Loan Amount
r is rate of interest calculated on monthly basis. (i.e., r = Rate of Annual interest/12/100. If rate of interest is 10.5% per annum, then r = 10.5/12/100=0.00875)
n is loan term / tenure / duration in number of months
This looks complicated! Doesn't it? Don’t worry. You can use our EMI calculator to get the same result automatically without any hard work from your side. Not only do we automate the calculation but we also show you graphs that help you understand your EMI better.
The mymoneykarma.com EMI calculator can help you in the following ways:
Calculate EMI in seconds – Our EMI calculator will help you calculate exactly the EMI you will need to pay for your loan every month.
Assist you to plan your finances - Compare various options of EMIs by varying loan criteria of tenure, principal amount and interest rate. Having the knowledge of all these options of EMI will help you choose the loan that is best suited for you.
Simplify calculations – As you have seen the formula for EMI calculation is extremely complex. However to make the best decision you might need to see the data in many different scenarios. Our calculator makes these calculations simple for you and helps you make an informed decision without getting into manual calculations.
With useful charts and automated results, mymoneykarma.com EMI Calculator is easy to use and very intuitive to understand. You can calculate EMI for any loan including home loan (or housing loan), car loan (or auto loan), personal loan or education loan.
To use the calculator complete the following information in the EMI Calculator:
You can either enter the values in the boxes or use the slider to input the values for all the parameters. Once you have entered the values the calculator will automatically calculate the EMI amount for you.
The calculator also displays a pie chart that breaks up the total payment for the loan into principal and interest components of the amount paid by displaying the percentage and amount paid for these components. This information will help you figure out the cost of the loan you are taking and choose the option where you pay the least interest.
MyMoneyKarma verifies your credit and profile to lender’s loan lending criteria, our algorithm matches and tends to shortlist the lenders based on your loan preferences. We upfront check your cibil score and your eligibility for personal loan, It becomes easy now to make your personal loan application gets approved is higher.
A personal loan is a loan approved to an individual to fund any personal expense like, for example, a wedding, to make renovations to the home or even for a family vacation. Unlike many other kinds of loan, there is no regulation on how the borrowed amount is finally used - the borrower has full freedom to use the money for any purpose they want.
Two attractive features in personal loans:
Complete flexibility of end-use. There are no restrictions on how you should spend the loan amount. This in contrast to a home loan or auto loan because when you apply for such loans you have to spend on the property or vehicle respectively. Personal loans have the freedom to use the money in any way you want.
A personal loan is an 'unsecured loan', meaning you are not at all required to provide any security to the lender in the form of cash or any other assets. This might make it more attractive to some customers who may not be able to raise the cash required as collateral.
There are various ways you can apply for a loan. You can login and apply directly online at the bank/ NBFC's website, or you can go in person to the branch to apply for a loan; go through online comparison websites; or you can contact a MyMoneyKarma.
If you want to apply for a loan and think your credit score might not be good enough, MyMoneyKarma can guide you on how to boost your score in the most efficient and effective way so that your loan application is approved. You will also be matched with the most suitable loan offer for you on the market. With a good score, you can have faster and hassle-free access to credit.
If you are in urgency for money and do not have any assets to use as collateral, then a personal loan might be the best option. However, it is important to keep in mind that you will be paying interest rate high on this kind of loan, so you should have a plan for being able to make all your payments on time. Also, make sure that you have a good credit score before you apply for a personal loan. Because low credit score can trouble you and your loan application gets rejected, your score will drop even further with each rejection, making it even more difficult to access credit in the future.
Identity Proof: Photocopy passport, voter ID card, and driving license.
Address Proof: Photocopy of ration card/telephone or electricity bill/rental agreement/passport.
3 months bank statement, updated bank passbook till 6 months
Current dated salary certificate with Form 16 latest.
There is no such guarantee that your loan will be approved at a particular score. But if you have higher score chances of getting loan approval is high, Suppose you need not to be worried if your credit score was below 750 there is nothing like your loan will not get approved. Find below outcomes for personal loan application process:
300-599: Your personal loan process will not get approved because of low credit score and also a warning sign to lenders that you don’t have a good credit history.
600-749: Though it’s not a high score but you may have chances to get your loan approved by lenders also some lenders tend to approve your loan based on your salary, consistency of employment and other liabilities.
750 Above: Great score! To apply for personal loans - The chances of obtaining loan are higher and also the loan approval process would go smoothly and faster.
Personal loan emi calculator Handy tool to check your eligibility, calculate your emi loan amount, rate of interest and loan tenure at MyMoneyKarma check now.