Whenever a personal loan is applied for, the applicant is required to repay the same in Equated Monthly Installments i.e. EMI. The EMIs that are to be paid depend upon several factors like loan amount, tenure, and interest rate.
An EMI is a fixed amount that is to be paid every month to repay any loan in which the lender predetermines the amount of EMI and the date of the payment at the time of sanctioning the loan.
A Personal Loan EMI Calculator is a simple tool that evaluates the EMI amount that is to be paid every month for the repayment of the personal loan. An online EMI calculator can also be used to assess the same within seconds as it is easy and quick to use.
To calculate EMIs using the Tata Capital Personal Loan EMI Calculator, enter the principal amount, loan tenure, and the rate of interest after which the EMI will be displayed on the screen. It helps in determining the potential monthly EMIs for a personal loan without straining the finances.
How to Use Tata Capital Personal Loan EMI Calculator?
The Tata Capital Personal Loan EMI Calculator has a pre-set formula, which is:
E = P x r x (1+r) ^ n / ((1+r) ^ n-1)
This formula stands for:
E = EMI amount
P = Principal
R = Rate of interest
N = Tenure of the loan
The above-mentioned formula can be explained with the help of an example of a Tata Capital Personal Loan:
Ms Ruma wants to borrow a loan of INR 20 lakh from TATA Capital in July 2022. She borrows the loan for a period of 10 years and an interest rate of 10%. Therefore the details of her loan are as follows:
Principal Amount = INR 20 lakhs
Tenure = 10 Years
Interest Rate = 10%
EMI = [20,00,000 x 10 x (1+10)120]/ [(1+10)120-1]
= INR 26,430 per month
How to use a Personal Loan EMI Calculator?
Below mentioned are the three main components of a Personal Loan EMI Calculator:
Principal Amount:
It is the total amount that is to be borrowed as a loan and to be repaid at the end of the loan tenure along with the interest.
Interest Rate:
It is the rate at which the interest will be charged on the principal loan amount for the loan tenure. It is expressed in percentage.
Loan Tenure:
It is a period within which one is liable to pay back the total loan amount along with the interest. It is expressed either in months or in years.
Easy Steps to Calculate Tata Capital Personal Loan EMI
Below-mentioned are some easy steps to calculate Personal loan EMI at Tata Capital:
Step 1: Set Loan Amount:
Using the first slider in the PL EMI Calculator, set the desired Loan Amount. One can even use the ‘+’ and ‘-‘symbols to increase or decrease the amount or enter the amount manually in the box.
Step 2: Set the Rate of Interest:
Use the second slider in the personal loan installment calculator to set the Rate of Interest. One can use the ‘+’ and ‘-‘symbols to increase or decrease the interest rate or manually enter it in the given box.
Step 3: Set up Loan tenure:
The third and final slider in the PL EMI Calculator will help to set the Loan Duration, in months or years. One can even use the ‘+’ or ‘-‘symbols to increase or decrease the loan duration or manually enter the same in the box while using the personal loan EMI calculator online.
Step 4: Result Display:
The personal loan rate of interest calculator will automatically show the EMI amount that one needs to pay every month.
Benefits of Personal Loan EMI Calculator
Below mentioned are the benefits of the Tata Capital Personal Loan EMI Calculator:
Know the EMI in Advance:
One can know the amount of EMI that is to be paid on a monthly basis well in advance using the Personal Loan EMI Calculator. Also, it allows better management of finances around the EMI and spending accordingly.
Budget Management:
As the EMI Calculator allows one to know the amount of EMI to be paid well in advance, it helps in better budget management and ascertaining the expenditure.
Find the Right Loan Tenure:
As it allows one to ascertain the total principal amount and the interest amount payable, the EMI Calculator helps in choosing the right loan tenure that is comfortable as per one’s budget.
Time-Saving & Accurate:
Calculating EMI via the traditional manual method is not only time-consuming but also a complex process, often prone to errors. A personal loan EMI calculator gives you an accurate answer within seconds. Moreover, a personal loan payment calculator will help you try different options before finalizing the loan amount.
Amortization Schedule
Loan Amortization is the process of reducing the debt by paying regular payments during loan periods. It is a table that shows the debt amount, principal amount, and interest component that is to be paid. EMI calculators give a fair understanding of the ratio of the principal amount to the interest due, based on the loan tenure and interest rates.
It is basically a table that specifies the below-mentioned items, namely:
- Equated Monthly Installments
- Interest Component of each EMI
- The Principal Component of EMI
- Outstanding Amount Prior to each EMI Payment
- Outstanding Amount post every EMI Payment
Let us understand this with the help of an example. For a principal loan amount of INR 5,00,000 borrowed at an interest rate of 16% for a tenure of 4 years, the Amortization schedule will be as mentioned below –
| Year | Principal | Interest | Total Payment | Closing Balance |
| 2023 | 96,947 | 73,094 | 1,70,042 | 4,03,053 |
| 2024 | 1,13,648 | 56,393 | 1,70,042 | 2,89,404 |
| 2025 | 1,33,227 | 36,815 | 1,70,042 | 1,56,178 |
| 2026 | 1,56,178 | 13,864 | 1,70,042 | – |
| Total | 5,00,000 | 1,80,167 | 6,80,167 |
Importance of Tata Capital Personal Loan EMI Calculator:
Tata Capital Personal Loan EMI Calculator will help customers in several ways but most importantly there will be no inaccuracy in the calculation of EMI as it can happen in manual calculation. It is a very simple and convenient online tool to calculate EMI, can be used several times, and can compare different values to choose the best one. Tata Capital Personal Loan EMI Calculator is a free tool that will tell whether you are applying for the right thing or not.
