How to calculate EMI for Your Loans using Personal Loan Calculator

Personal loan is one of the most sought after loan advances in India because it helps people fulfil their urgent cash requirements quite easily. The best thing about such loans is that they come along with quick approval and processing. However, one thing that could bother you here is the high rate of interest charged by the different banking institutions in India. Despite this negative feature, these kinds of loans have proved to be the best choice for people who are planning to get some extra cash in less than 48 hours.

Calculating the personal loan eligibility can be a very tricky task to perform because it involves some of the most complicated calculations and assessments. This is the major reason why most of the banks tend to do all the calculations on their own which makes the work of the borrowers easier. However, if you’re willing to calculate your own EMI, you can easily do that by following some key steps. It is actually possible to calculate your monthly EMI without actually using a Personal loan calculator offered by the bank.

Hence, you can easily use your skills to become your own Personal Loan Calculator for determining the EMI which is to be paid on a monthly basis. The amount of money which you borrow depends entirely upon how much you can actually repay every month in the form of EMIs. This is why calculating these monthly instalments are very important for every personal loan borrower. 

The key steps involved to calculate your Personal Loan EMI

1. The first step usually involves the assessment of your salary slips, tax return forms and bank statements. Basically, you’ll have to first calculate your total monthly income by adding up all the sources. You could easily find all such details in your present bank statements.
2. Now, you’ll have to determine the total amount of money you save in different forms. The savings of an individual depend on various factors including your lifestyle and monthly budget. Therefore, you’ll have to take all such things into consideration while assessing the total savings.
3. All the outstanding debts and the EMIs will be deducted from your total income to get the amount of money available with you. This is the sum on which the EMI is calculated and, therefore, it is better to ensure that you get rid of all the other loans before applying for a new personal loan.
4. Once you’ve determined the required amount, you’ll have to carry out some backward calculation for finding out the total sum of the loan that would eventually result in an easy monthly instalment which is equal to the sum that you can actually save. The banking institution also uses of the current rate of interest for calculating this.

By following all the above mentioned steps, you’ll be able to calculate the EMI on your personal loan without actually using a personal loan calculator. So, you shouldn’t waste any more time and create some key strategies to calculate the total amount of personal loan right away. Take expert help, if required, to get the desired results accurately.