BOI Personal Loan Calculator
The BOI personal loan calculator is an online tool to determine the payable interest based on the loan amount and tenure. The calculator makes use of factors like the actual loan amount, loan tenure, and the applicable rate of interest on the borrowed amount to calculate your EMI amount. The calculator helps you determine the amount of monthly installments you will be paying on your personal loan.
A personal loan is a loan that does not require any collateral or guarantor and can be availed with minimal documentation. You can avail of a personal loan to meet your current financial needs and use it to pay for your vacation, finance a wedding, renovate your home, consolidate other loans, buy your favorite gadget, or pay for any other unplanned expenses.
EMI stands for Equated Monthly Installment for the loan you avail from your bank. The EMI consists of the principal portion of the loan amount and the interest. Usually, the EMI remains fixed for the entire tenure of your loan and it has to be repaid over the term of the loan on a monthly basis.
How Does The BOI Personal Loan EMI Calculator Work?
The BOI personal loan EMI calculator works on the below formula to calculate your EMI amount.
Where,
P is the principal personal loan amount
r is the rate of interest per month
n is the loan tenure in months
Example:
You are planning to take a personal loan for ₹6 lakhs and the interest rate of the loan is 9%. You have to repay the loan over a period of 3.5 years. Let’s use the calculator formula to calculate the monthly EMI amount.
EMI = 6,00,000 x 0.09/12 x (1 + 0.09/12)^42 / [(1 + 0.09/12)^42 - 1]
EMI = 6,00,000 x 0.075 x 1.36864 / (0.36864)
EMI = 6,158.88 / 0.36864
EMI = ₹16,707 (approximately).
So, if you take a personal loan for ₹6 lakhs at an interest rate of 9% for a tenure of 3.5 years, your EMI amount will be ₹16,707 every month.
How Should You Use The BOI Personal Loan EMI Calculator?
The BOI personal loan EMI calculator can be used to determine the EMI amount for your personal loan. Using the calculator is a straightforward process.
- The first step is to enter the loan amount you wish to borrow from the lender.
- The next step is to enter the interest rate at which the loan will be availed to you.
- The final step is to type in the tenure of the loan.
When the details are entered, the calculator will compute the monthly installment amount in a few seconds.
Example:
Mr. Fahad is looking to take a personal loan of ₹2,80,000 at an interest rate of 11%. The tenure of the loan is one year. We will use the calculator formula to calculate the monthly EMI amount for Mr. Fahad.
EMI = 2,80,000 x 0.11/12 x (1 + 0.11/12)^12 / [(1 + 0.11/12)^12 - 1]
EMI = 2,80,000 x 0.00916 x 1.11563 / (0.11563)
EMI = 2,861.637824 / 0.11563
EMI = ₹24,746 (approximately).
So, if Mr. Fahad took a personal loan for ₹2,80,000 at an interest rate of 11% for a loan tenure of one year, he has to pay a monthly EMI of around ₹24,746.
Benefits Of Using The BOI Personal Loan EMI Calculator
The BOI personal loan EMI calculator comes with several benefits. Below are a few of the advantages.
- The personal loan EMI calculator makes it easy to estimate your monthly payments based on the amount you borrow and the loan duration.
- The calculator saves tedious calculations, time, and energy by calculating your EMI in seconds.
- Using the calculator is a quick, precise, and hassle-free way of determining the amount you need to pay over a fixed period of time.