|Loan Amount (Rs.)||2 Years||3 Years||5 Years|
|1 Lakh||₹ 4,714||₹ 3,329||₹ 2,232|
|3 Lakh||₹ 14,143||₹ 9,986||₹ 6,696|
|5 Lakh||₹ 23,572||₹ 16,643||₹ 11,160|
|10 Lakh||₹ 47,144||₹ 33,286||₹ 22,320|
It can be interpreted that with different loan rates taken at the lowest interest rate, EMI varies with loans taken from different areas. Your EMI is higher if you take out a short loan for a short period of 2 years and higher with a long-term employment loan.
Each EMI includes the interest and principal payment component. Even if the EMIs are regular, monthly, there is a change in the interest rate and principal returns. With every EMI payment, the amount of the principal payment in EMI continues to increase, and the interest rate continues to decrease.
Personal Loan EMI offered by Allahabad Bank for the different tenures
|Calculated Results For Allahabad Bank EMI||2 Years||3 Years||5 Years|
|For the loan amount of Rs. 1 lakh at 12.15%||₹ 4,714||₹ 3,329||₹ 2,232|
|The total amount that you pay back to the bank||₹ 1.13 Lakh||₹ 1.20 Lakh||₹ 1.34 Lakh|
|The interest that you have to pay during the loan time period||₹ 13,136||₹ 19,844||₹ 33,920|
The table above shows that EMI paid on loans will decrease with long-term loans. However, your total interest rate is much higher on long-term loans. In the example above, if you take a ₹ 1 Lakh loan from Allahabad Bank for 60 years, you pay the lowest EMI of 2 2,232. However, he pays interest of 33,920 on a loan of L 1 Lakh.
Conversely, if you take out ₹ 1 Lakh loan from Allahabad Bank for a meager 2-year loan, you pay a higher EMI of 4,714 and pay interest of only ₹ 13,136 less than half of your 60-year loan repayment. Hence, it is always recommended that you choose your loan wisely because staying longer means higher interest costs.
Allahabad Bank Personal Loan EMI formula:
P * r * (1 + r) ^ n / ([(1 + r) ^ n] -1)
In the above formula,
- P = Loan amount. This can range from ₹ 50,000 to ₹ 7.50 Lakh
- r = Interest rate per month. The current rate is 12.15%
- n = monthly stay. At Allahabad Bank, this can be up to 60 months
Understood how the interest rates are calculated? Still don’t get it? No worries, we’ll do it for you. Just call Dialabank at 9878981166 to get your Allahabad Bank Personal Loan.