Are you planning to apply for a personal loan? Do you want to know personal loan EMI before applying? Determine the EMI and the optimum tenure for the personal loan with the help of the personal loan EMI calculator. The personal loan calculator will help to calculate the EMI, total payable amount, and interest rates in less time. Understanding EMI charges in advance will help you plan your finances before applying for a personal loan.
Make sure most of the lenders do not accept the personal loan application if the total EMI obligations consist of the proposed EMI for the new loan, more than half the net monthly income.
Charges applicable on missing the personal loan EMI
When you miss the personal loan EMI payments, you have to pay more charges than the actual EMI payable.
Penal interest charges: Penal interest charges are the overdue interest charges applicable on the overdue EMI until the repayment date.
- Cheque/ bounce charges:
These charges are applicable when the EMI payments of the personal loan fail because of the insufficient bank balance account or termination of the account used to repay the EMI payments. These are fixed charges every time an automated deduction on EMI fails or cheque bounces.
Factors that affect personal loan EMI
Here we will tell you the factors that affect the personal loan EMI payable amount. Let us tell you about such factors.
- Loan principal: If someone in a personal loan borrows a higher amount, they must pay the high EMI charges, but the interest rate remains constant.
- Interest rate: The high rate applicable on the personal loan possesses the high EMI payouts along with the total interest payable on the personal loan.
- Tenure: If you are applying for a personal loan with a long tenure, it leads to lower EMI and high-interest costs.
Can the EMI charges change during the loan tenure?
Yes, even the personal loan EMI possesses a fixed amount per the personal loan EMI calculator, but it can change during the loan tenure under the same conditions.
- Loan prepayment case: After the personal loan prepayment, you can reduce the EMI charges for the tenure of the loan tenure amount for the same EMI Charges. So, it is suggested to only reduce EMI if the existing EMI amounts cause financial strains. On the other hand, reducing tenure amounts is more beneficial in reducing the interest rate on a personal loan.
- Floating interest rate case: some lenders provide personal loans at the floating interest rate linked to the benchmark rates. And when the benchmark rate changes, the applicable interest rate on personal loans also changes. On the other hand, if the floating interest rate is raised, the lender must expand the loan tenure by keeping the EMI the same.
Conclusion
This article will deliver you the information on personal loan EMI. You will get the detail on the factors that affect the loan EMI.
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