News India Live, Digital Desk: Personal Loan Emi Guide: Nowadays money can be required at any time – whether there is marriage in the house, an emergency comes, or the expenditure of children’s education. In such a situation, personal loan seems an easy way. But, before taking a loan, it is most important to understand how much your every month’s installment (EMI) will be made, so that later your pocket does not get unnecessarily burdened. If you are also making up your mind to take a personal loan, then this news is for you! Let’s know how much your monthly installment will be made for different periods on loans ranging from 1 lakh to 5 lakhs.
Personal Loan and EMI: What is their mathematics?
EMI (Equated Monthly Installment) is the amount that you give to the bank or financial institution to repay the loan every month. Your EMI depends on three main things:
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Loan Amount: How much loan you have taken
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Interest rate: How much the bank is taking interest from you.
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Loan Tenure: In how many months or years you will repay the loan.
The shorter the interest rate and the loan duration, the higher your EMI will be, but you will have to pay the total interest. At the same time, the more the loan duration is, the less your EMI will be, but you will have to pay more interest.
Understand how much will be your EMI (suppose the interest rate is 10% per year):
1. EMI on personal loan of 1 lakh rupees:
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For 1 year (12 months): Around ₹ 8,792 per month
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For 2 years (24 months): Around ₹ 4,614 per month
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For 3 years (36 months): Around ₹ 3,227 per month
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For 5 years (60 months): Around ₹ 2,125 per month
2. EMI on personal loan of Rs 2 lakh:
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For 1 year (12 months): Around ₹ 17,584 per month
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For 2 years (24 months): Around ₹ 9,228 per month
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For 3 years (36 months): Around ₹ 6,454 per month
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For 5 years (60 months): Around ₹ 4,250 per month
3. EMI on personal loan of Rs 5 lakh:
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For 1 year (12 months): Around ₹ 43,960 per month
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For 2 years (24 months): Around ₹ 23,070 per month
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For 3 years (36 months): Around ₹ 16,135 per month
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For 5 years (60 months): Around ₹ 10,625 per month
Things to take care before taking a loan:
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EMI repayment ability: Take the loan as much as you can easily pay. Make sure to calculate your monthly income and expenses.
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Comparison of interest rates: Make sure to compare the interest rates of different banks and financial institutions.
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Hidden fees: Take information about hidden fees like processing fees, pre-payment charges.
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Cibil score: A good cibil score can give you better interest rates.
The perfect planning and wise personal loan can meet your needs and help you move forward without any financial stress.
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