Cosmos Bank Personal Loan EMI Calculator

The EMI calculator helps calculate the amount of the EMI installment that is to be paid every month. It is based on three variables - the amount of loan availed or the Principal amount, the rate of interest and the duration for which the loan is availed.  

The formula used to calculate a personal loan EMI is [P x R x (1+R)^N] / [(1+R)^N-1]

Where;

• P = Principal loan amount
• R = Rate of interest
• N = Loan tenure in months

For Cosmos Bank Personal Loan the values for each are:

• P = Maximum up to  5 lakh
• R = 12.50% p.a.
• N = can be a maximum of 48 months or 4 years.

MyMoneyMantra is a one-of-its-kind online financial portal that is empowered with a personal loan calculator. The financial tool is extremely easy to use.

To use the Cosmos Bank Personal Loan EMI Calculator on MyMoneyMantra simply log on to the MyMoneyMantra website and use the EMI calculator in the following way:

• Log on to the MyMoneyMantra website
• From the header bar click on the link 'Financial Tools' and select EMI calculator from the drop-down menu. 
• On the EMI calculator page, enter the required parameters like principal amount, rate of interest, and tenure. 
• On submitting the information, the monthly payable EMI amount will flash on the screen. 
• To reach the ideal EMI, you may make amendments in the principal amount and loan tenure. 
• Once completed, check your loan eligibility and apply for a Cosmos Bank personal loan directly through MyMoneyMantra.

The main advantage of using the Cosmos Bank personal loan EMI calculator is that it makes the applicant aware of the amount of EMI he/she will be required to pay every month to repay the loan. The appropriate amount of EMI makes repayment easy with mounting financial stress.

The other benefits of using a personal loan EMI calculator are:

All-time Access: MyMoneyMantra's EMI Calculator can be used anytime. The access of the calculator is available online and thus the borrower can log in at any time as per convenience. Furthermore, the use of the EMI calculator is absolutely free of cost.

Save Time: MyMoneyMantra's EMI Calculator allows you to compare deals of different banks without visiting different bank branches or meeting loan representatives of different banks. Thus, the procedure of choosing the lender and applying of a personal loan is very easy and hassle-free.

No complex calculations involved: By using MyMoneyMantra's EMI Calculator the computation of EMI is very easy and without any manual errors. The results calculated by the personal loan EMI calculator are reliable and accurate.

Crucial for financial planning: MyMoneyMantra's EMI Calculator is an effective financial tool. It shows the monthly outflow of funds that the borrower is required to repay a personal loan. It also allows its users to try different combinations of the loan parameters until the best and most comfortable EMI figure is reached. This saves the borrower from undue financial stress. Thus, the EMI calculator allows the borrower to weigh his/her income and outflow and take a fully informed decision.

The value of EMI corresponding to the amount of personal loan is dependent upon various factors. These are:

Principal Loan Amount: The principal amount is the amount of personal loan that the borrower wishes to avail. The higher the principal amount, the higher will be the EMI. Cosmos Bank allows a personal loan up to 5 lakh.

Rate of Interest: The personal loan interest rate is the interest charged by Cosmos Bank on issuing a personal loan. The rate of interest is the income for the bank, but it is an expense for the borrower. The EMI amount is directly related to the rate of interest. A higher rate of interest will lead to a higher EMI. The rate of interest charged by Cosmos Bank on its personal loan is 12.50% p.a.

Applicant's occupation: Applicants with permanent jobs with government institutions or reputed private companies are more likely to get a lower rate of interest, which can scale down the EMI amount.

Loan tenure: The time period over which the personal loan is to be repaid is the loan tenure. EMI value is inversely linked to the loan term. The longer the loan tenure, the lower will be the EMI. Cosmos Bank sanctions personal loan for a maximum period of 4 years or 48 months.

Existing bank customers: Cosmos Bank may negotiate its terms for its loyal customers. Existing customers of Cosmos Bank enjoy a lower rate of interest on personal loans.

Credit Score: Credit Score reflects your financial discipline. Applicants who have a clean banking record and a healthy credit score are most likely to avail of a Cosmos Bank personal loan. The banking history shows details of the number and type of loans availed and the discipline in repaying the loans on the due date. All these factors are closely assessed to evaluate the borrower's commitment to repaying a loan. As personal loan comes without any collateral security, a high credit score becomes mandatory. Thus, the higher the score, the higher will be the eligibility and chances of getting the loan approval.  Applicants with high credit scores have the advantage of availing of higher loan limits along with concessions in the rate of interest and other charges.

Debt to Income Ratio: This Debt to Income ratio is paramount while ascertaining the eligibility of the personal loan. The required ratio varies between 30% and 50% depending on the lender. The ratio is calculated keeping in mind the existing commitments and EMIs of ongoing loans. The existing commitments include mandatory expenses like rent, utility bills, etc. The lender calculates the ratio to gauge if the proposed EMI can be comfortably repaid after taking into account the existing commitments.

EMI is a fixed value of money that the borrower will have to pay every month for the entire loan term in order to repay an availed personal loan. As the period of repayment is long, it is important that the EMI amount is carefully calculated.

The EMI value should not be too small as smaller values of EMI come with longer tenures. This makes personal loan expensive. On the other hand, a very high value of EMI is difficult to be paid continuously for over a year. This warrants unwanted financial stress. To ease the situation, the loan duration should be increased. Listed below are a few tips that help ascertain the right amount of EMI.

Check the principal amount: The principal amount of the personal loan has a direct impact on the EMI. Also, it's the principal value that attracts the interest charge. Thus, a lower principal amount will attract a lower interest. It is important to choose the personal loan wisely and make sufficient provision for using personal savings. Use EMI calculator to reach the ideal EMI amount beforehand.

Check your financial obligations: Personal loan should not be applied in haste. It is a high value liability and directly impacts the financial standing. Therefore, it is important to clearly assess and evaluate the need of personal loan and your current financial obligations before applying for the same. Your monthly budget should account for the additional EMI outflow without any undue stress.

Check Eligibility: Cosmos Bank approves personal loans only up to the amount the applicant is eligible for. Cosmos Bank personal loan eligibility of the applicant depends upon their repayment capacity, income, age, job profile, qualification, number of dependents, current financial standing, total assets and liabilities, applicant's saving history, job stability, work experience, etc.  The applicant can use the personal loan eligibility checker to know the maximum amount of loan allowed. Cosmos Bank, however, allows applicants to team up with other co-applicants to enhance the personal loan eligibility limit.

An EMI amount changes on two conditions:

• Change in EMI amount upon change in rate of interest
• Change in EMI amount on prepayment

Unlike home loans, personal loan comes with a fixed rate of interest. The rate of interest remains same over the entire course of the loan. Thus personal loan do not face a situation where in a change in EMI amount occurs due to change in rate of interest. Cosmos Bank Personal Loan is available at a fixed rate of interest of 12.50% p.a.