Personal Loan EMI
Compute the Equated Monthly Installment for personal or car loans.
Monthly EMI
₹ 10,624
An Equated Monthly Installment (EMI) is the fixed amount you pay to a lender at a specific date each month. It’s designed so that by the end of the tenure, you have repaid both the principal amount and the interest.
⚠️ The "Flat Rate" Trap
Car dealers and NBFCs often quote a "Flat Interest Rate" (e.g., 5%) to make the loan look cheap. Do not be fooled.
In a Flat Rate, interest is calculated on the original principal for the entire tenure, even as you keep repaying it. A Flat Rate of 5% is roughly equivalent to a Reducing Balance Rate of 9-10%.
Factors that Spike your EMI
Two hidden factors can significantly impact your monthly outflow:
- Credit Score (CIBIL): For unsecured loans like Personal Loans, your score is everything. A score below 700 can increase your interest rate by 2% to 5%.
- Processing Fees: While not part of the EMI, high processing fees (up to 2% of loan amount) increase the effective cost of borrowing. Always negotiate this.
Frequently Asked Questions
Is there a penalty for foreclosing a Personal Loan?
Yes. Unlike Home Loans, most banks charge a hefty foreclosure penalty (2% to 5% of outstanding principal) on Personal and Car loans. Always check the 'Foreclosure Charges' clause before signing.
Does checking EMI affect CIBIL score?
No. Using online calculators has zero impact. However, formally applying for a loan with a bank triggers a 'Hard Enquiry' which can dip your score slightly.