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When you’re in need of quick funds—whether it’s for a home upgrade, a dream vacation, or a medical emergency—a personal loan can be your go-to solution. But taking a loan isn’t just about getting the money. It’s about borrowing smart. That means choosing a low interest personal loan and using a personal loan EMI calculator to plan your repayments with ease.
So, how do you find the best interest rate and figure out your monthly EMIs without getting lost in numbers? Let’s break it down.
Why interest rates matter when choosing a personal loan
The interest rate directly affects how much you’ll repay over the loan tenure. Even a small difference in percentage can lead to significant savings (or extra costs) over time.
For example:
- Loan amount: Rs. 3,00,000
- Tenure: 24
- Interest rate at 11%: EMI ~ Rs. 14,029
- Interest rate at 15%: EMI ~ Rs. 14,568
That’s a difference of over Rs. 13,000 across the loan tenure—money you could use for investments, travel, or savings.
That’s why finding a low interest personal loan is crucial.
What determines your personal loan interest rate?
Lenders don’t offer the same rate to everyone. Your personal loan interest rate depends on several factors:
- Credit score: A score above 750 can unlock better offers
- Income level: Higher income = lower risk for lenders
- Employment type: Salaried professionals in stable jobs often get better rates
- Loan amount and tenure: Shorter tenures may fetch lower rates
- Existing debt: Lower existing liabilities usually work in your favour
The key is to present yourself as a low-risk borrower.
What is a personal loan EMI calculator?
A personal loan EMI calculator is an online tool that helps you estimate your monthly repayments. Instead of doing complex maths, you just need to input a few basic details:
- Loan amount (e.g., Rs. 2,00,000)
- Interest rate (e.g., 13.5% per annum)
- Tenure (e.g., 24 months)
And just like that, the calculator shows your monthly EMI, total interest payable, and total repayment amount.
Why use a personal loan EMI calculator?
Using a personal loanEMI calculator before applying for a loan can help you:
1. Understand your monthly outflow
You’ll know exactly how much money will leave your account each month, helping you budget better and avoid financial stress.
2. Choose the right tenure
Prefer lower EMIs? Go for a longer tenure. Want to pay less interest overall? Opt for a shorter term. A calculator helps you strike the right balance.
3. Compare loan offers
If you’re deciding between two different loan options, use the EMI calculator to compare how each affects your monthly outflow and total repayment.
4. Plan for prepayment or part-payment
Want to close your loan early? The calculator can show how prepaying a portion of the loan could reduce your EMIs or shorten the tenure.
Steps to Use a Personal Loan EMI Calculator
Using the calculator is super simple:
1. Enter the loan amount you want to borrow—say, Rs. 1,50,000
2. Input the interest rate offered—say, 12% per annum
3. Choose the tenure—maybe 18 months
4. Click calculate to see:
- EMI: Rs. 8,908 (approx.)
- Total interest: Rs. 10,351
- Total payment: Rs. 1,60,351
Play around with the numbers until you find a repayment plan that feels just right.
Tips to find a low interest personal loan
If your goal is affordability, keep these smart tips in mind to find a low interest personal loan:
1. Check your credit score
Improve your score before applying. A small jump could unlock a better interest rate.
2. Compare offers from multiple lenders
Never settle for the first offer you receive. Use comparison websites or financial apps to browse options.
3. Go for shorter tenure (if you can afford it)
Shorter loans may mean higher EMIs, but you’ll save on interest in the long run.
4. Avoid hidden charges
Processing fees, prepayment penalties, and late charges can add up. Always read the fine print before signing.
5. Maintain a low credit utilisation ratio
If you’re already using a big chunk of your credit limit, lenders might offer higher interest rates. Try to stay below 30% of your total credit limit.
Beyond EMI: Don’t forget other loan aspects
While the personal loan EMI calculator focuses on monthly payments, don’t ignore the overall borrowing cost. Some lenders may attract you with low interest but add hefty processing charges. Others might have flexible prepayment options that could save you money down the line.
A good loan is more than just a low EMI—it’s about overall transparency and flexibility.
Conclusion
A personal loan can be your financial bridge during important moments. But it pays—quite literally—to do your homework. Finding a low interest personal loan and using a personal loan EMI calculator to map out your repayment plan can help you stay financially confident and stress-free.
So, before you sign that application, take a few minutes to calculate, compare, and choose wisely. After all, financial freedom begins with informed decisions.
“This article is part of the sponsored content programme.”
Published on May 2, 2025
This article first appeared on The Hindu Business Line
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