What does the calculator talk about?
The personal loan calculator can help a potential borrower by calculating EMIs, i.e. Equated monthly instalment which is required to be paid to the bank by the borrower on a monthly basis until the full loan amount is paid.
EMI is based on a personal loan amount, duration, and interest rate. For a personal loan amount, interest rate and for a period of time, the calculator will inform you how much EMI should pay.
How to use
To access EMI, one must enter:
Loan amount – Must be between Rs 50,000 and Rs 30 lakh
Tenure – The period must be between one and five years.
Interest rate – Must be between one and 50 percent.
Interest rates may vary from lenders as different lenders may offer loans at different rates. For the interest rate, enter the rate at which your lender gives you a loan.
Use the slider to enter different personal loan rates and working hours to get to EMI where you are comfortable.
The results will show three things –
a. EMI – This amount will be paid monthly until the loan is repaid in full.
b. Diversification – Indicates the interest rate on the EMI of each month. The rest is the principal who is reinstated each month.
c. Billing system – The billing system shows the division of interest paid and the head paid by EMI each month until the end of the period. The balance after payment of the monthly EMI is also reflected in the discount method.
How the result came
The formula used to reach EMI is:
EMI = [P x R x (1 + R) ^ n] / [(1 + R) ^ n-1]
Here, P = Primary loan amount, R = Interest rate, n = Total monthly installment amount.
Thinking, P = Rs 3 lakh, R = 15 percent per year = 15/12 = 1.250 per month, N = 60 months
EMI = = ((300000 * 1.250 / 100 * (1 + 1.250 / 100) ^ 60 / ((1 + 1.250 / 100) ^ 60-1))) = Rs 7,137
Why take the hassle? Just call Dialabank at 9878981166 to get your loan from any Bank according to your preference.