Personal loans are unsecured loans that can be used for any personal purpose such as vacations, weddings, gadgets or just about anything that you desire. You do not have to provide any mortgage or collateral for personal loans offered by banks and financial institutions in India. If you are planning to take a personal loan to meet any expense or desire, make sure that you calculate your personal loan EMI (instalments) in advance.
Here are the main features of a personal loan.
- Flexible repayment options of 12-60 months
- Interest rate for personal loans is slightly higher that standard rates
- Loan amount disbursement quickly, with many banks processing personal loans within a day
- The personal loan EMI instalment decreases with longer repayment tenure
Personal Loan EMI Calculator
Download the Personal Loan EMI Calculator in Excel for quickly calculating your EMI. All the formula has already been defined. .You just need to enter your actual loan amount, tenure and interest rate.
How to use the personal loan EMI calculator?
- Loan Amount – Enter your Personal Loan amount that you would like to borrow.
- Interest Rate – The Personal Loan Interest Rate offered by your bank. Make sure to add the % symbol after the value.
- Tenure/No. of Months – Select the tenure of your Personal loan and calculate your monthly EMI.
USING EXCEL
You can easily calculate your personal loan EMI using the Excel spreadsheet. In Excel, the function for calculating the EMI is called PMT. You need the following: monthly rate of interest (rate), number of periods in months (nper) and the loan amount or present value (pv).
The formula for calculating your personal loan EMI in Excel is:
=PMT(rate,nper,pv)
Let’s take an example. Suppose you are taking a loan of Rs 10 lakh at 12% interest per annum for 5 years. In such a case, divide the interest rate by 12 and multiply the number of years by 12. The equated quarterly instalment for the given figures will be =PMT(12%/12, 5*12, 1000000)