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PPFAS Personal Loan Calculator

₹
%
Yr
Total amount₹ 11,73,960
Principal amount₹ 10,00,000
Total interest₹ 1,73,960
Monthly EMI₹ 19,566
Principal amountInterest amount

The PPFAS personal loan EMI calculator is an online tool that helps you figure out the monthly installment you will need to repay when you borrow a certain amount of money from the lender. The calculator simplifies complex financial calculations. This makes it easier for you to plan your finances and make informed decisions.

A personal loan is a loan that is provided with little to no documentation and without the need for security or collateral. You must pay back the loan according to the terms set forth by the bank, just like any other loan. Usually, the loan can be paid back in monthly installments over a period of a few months to a few years.

EMI i.e. Equated Monthly Installment is a fixed amount that has to be paid every month throughout the tenure of the loan. The EMI comprises the interest and the principal component. The EMIs, typically, tend to stay the same throughout the repayment period but if you choose a floating interest rate, your EMIs might change.

How Does The PPFAS Personal Loan EMI Calculator Work?

The PPFAS personal loan EMI calculator uses the below formula to calculate the EMI amount.

EMI = P x ( r x (1 + r)^n) / (( 1 + r)^n - 1)

Where,

P is the principal personal loan amount
r is the monthly interest rate
n is the loan tenure in months

Example:

You are planning to take a loan for your medical expenses and the loan amount is ₹6.2 lakhs. The interest rate of the loan is 16.05%. The tenure of the loan is 4 years. Here’s how you can calculate the EMI amount using a calculator formula.

EMI = 6,20,000 x 0.1605/12 x (1 + 0.1605/12)^48 / [(1 + 0.1605/12)^48 - 1]
EMI = 6,20,000 x 0.013375 x 1.89220 / 0.89220
EMI = 15,691.0685 / 0.89220
EMI = ₹17,587

So, if you take a loan for ₹6.2 lakhs at an interest rate of 16.05%, you will have to pay an EMI amount of ₹17,587 every month for four years.

How Should You Use The PPFAS Personal Loan EMI Calculator?

Using the PPFAS personal loan EMI calculator is a straightforward process. Here's how you can make the most of this tool.

  • Start by entering the total amount you intend to borrow as a personal loan.
  • Specify the annual interest rate offered by the lender. This rate will depend on your creditworthiness and the lender's policies.
  • Select the duration over which you plan to repay the loan.

Once the details are entered, the calculator will show you the monthly EMI amount in a matter of seconds.

Example:

Ms. Priya is looking to buy new furniture for her house and she needs a personal loan for ₹5.35 lakhs. The lender is offering the loan at an interest rate of 9%. The repayment tenure of the loan is 5 years. By putting the values in the calculator formula, we get:

EMI = 5,35,000 x 0.09/12 x (1 + 0.09/12)^60 / [(1 + 0.09/12)^60 - 1]
EMI = 5,35,000 x 0.0075 x 1.56568 / 0.56568
EMI = 6,282.291 / 0.56568
EMI = ₹11,106

So, if Ms. Priya takes a personal loan for ₹5.35 lakhs at an interest rate of 9%, she has to pay an EMI amount of ₹11,106 every month throughout the loan tenure of five years.

Benefits Of Using The PPFAS Personal Loan EMI Calculator

Using the PPFAS personal loan EMI calculator comes with multiple benefits. Here are a few of them.

  • The personal loan calculator gives an accurate estimate of your monthly EMI amount, helping you plan your budget effectively.
  • The calculator enables you to better plan your monthly finances, ensuring that you have sufficient funds to meet your loan obligations and other expenses.
  • The calculator simplifies complex financial calculations, eliminating the need to manually calculate EMIs using complicated formulas.

PPFAS Personal Loan Calculator - FAQs

What is the tenure of a personal loan?
Personal loan tenures typically range from one to five years, but they can be longer or shorter depending on the lender's policies and your repayment capacity.
Are the EMI calculations from the calculator accurate?
EMI calculations from an EMI calculator are accurate based on the data you provide. However, keep in mind that the actual EMI may vary slightly because of rounding methods and lender-specific policies.
What factors affect personal loan eligibility?
Personal loan eligibility is influenced by factors like your credit score, monthly income, employment history, and existing financial obligations. Lenders analyze these factors to figure out whether you qualify for a loan and the loan amount you are eligible for.