Federal Bank Personal Loan EMI Calculator

In 1931 the bank was incorporated as Travancore Federal Bank Limited. It started as a small establishment with a small network and at present is spread over several states in the country. The bank was renamed Federal Bank Limited in 1949 and obtained a licence under Banking Regulations Act 1949 on July 11 1959. It then became a scheduled commercial bank. It is one of the first banks to be 100% computerised and leverages its operations using technology expertise.

Some of the products of Federal Bank are Retail and Corporate banking services, insurance, internet banking, mutual funds, merchant banking etc. Of the several loan products of the bank, personal loans have gained popularity. The technology-based operations of the bank have made the obtention of personal loans quick and easy. To enable the customers to evaluate the repayment capacity before applying for the loan, the bank provides Personal Loan EMI Calculator. The Federal Bank Personal Loan EMI Calculator can be accessed either on the website of the bank or on the mobile application of the bank.

Assessment of the loan requirement and the repayment capacity is essential if you have to make the loan journey stress-free. If you avail of a personal loan for a family holiday, the happy memories of the holiday will wipe out if you have to face a lot of stress while repaying the same in order to save yourself from a situation like that, you should evaluate the repayment capacity using the Personal Loan EMI Calculator Federal Bank. Steps to use the EMI calculator is given below.

• Access the Federal Bank Personal Loan EMI Calculator either on the website of the bank or on the Fed Mobile App.
• If you are accessing the website, then you will find the calculator on the homepage of the website.
• If you are accessing the calculator on the Fed Mobile App, then Go to the Loans Option on the Home Screen and click on the Calculator option in the Overview Section.
• Once you get access to the EMI Calculator, either way, you provide the loan amount, rate of interest and tenure, and the EMI will be calculated in seconds on hitting the Calculate button.
• You can use this calculator as many times till you get the result as per your requirement.

For proper planning of your current as well as future finances, it is highly essential to evaluate the EMI as well as the cost of the loan before applying for a loan. The mathematical formula that will help calculate the overall Interest for a Personal Loan is EMI = [P x R x (1+R)N] / [(1+R)(N-1)]. Here, 

P=Principal   
R=Interest and   
N=Tenure in months. 

With this formula, you will get not only the EMI value but also the total interest payable for a particular tenure. This will prompt you to borrow only as much as required for the purpose for which you are availing of the loan. The personal loan is available at such flexible terms that you will be tempted to borrow even when it is not absolutely necessary. It could just be a source of funding to fulfill all the wishes that are a part of your bucket list. Evaluation of your repayment capacity and the cost of the loan will refrain you from unnecessary borrowing. There will be items on the bucket list that can wait till your savings can provide for it. So, be cautious while going in for a loan and do not unnecessarily fall into a debt trap and do an estimate of the cost of the loan using the Federal Bank Personal Loan Interest Rate EMI Calculator.

For an astute decision, you will have to assess your repayment capacity before applying for a loan. You can use the Personal Loan EMI Calculator Federal Bank for the assessment. The other reasons why you should use the Federal Bank Personal Loan EMI Calculator are:

• There will be no scope for errors, and the result will be 100% accurate.
• It can be accessed anytime from anywhere at the ease of your home or workplace.
• You can plan your current and future finances if you know the forthcoming commitment beforehand.
• You will curtail the loan to the extent required instead of borrowing unnecessarily on understanding the overall cost of the loan.
• It will save you from burning a hole in the pocket with the evaluation of the EMI to fit your budget.
• It can be used to compare the various offers and choose the lender with the most lucrative offer.

Borrowing within your means is prudent financial management. Estimation of the outgo towards the proposed loan will help you reshuffle your finance allocation by eliminating unwanted expenses. It will also prompt you to close existing small loans to upgrade your eligibility. You can do the evaluation of the EMI to fit your budget using the Federal Bank Personal Loan Interest Rate Calculator. Your choice should be such that the loan is available at an EMI that fits your budget as well as is economical. Just enhancing the loan tenure to reduce the EMI is not a proper evaluation as it increases the cost of the loan. Compare the EMIs with other banks, estimate the EMI to fit your budget while being cost-effective to showcase your prudence in financial management.

Does the EMI remain constant throughout the loan tenure? This is a valid question. Most of the borrowers make a commitment believing that there will be no change in the EMI throughout the tenure, and so initial planning will help them to make prompt repayments. On the contrary, there are several reasons that impact the EMI of a loan. The three major factors that impact the EMI of a personal loan are tenure, the loan amount and interest. You would have estimated the EMI bearing these three factors in mind. How these factors affect the EMI will be explained, but there are other reasons as well that impact the EMI that can give you mild shocks during the loan tenure as it will dishevel your planning.

If you have availed the loan on a floating rate of interest, there will be periodical changes in the interest rate. This can either make the EMI lower or higher depending on the nature of the change. 

Prepayments made during the loan tenure can lower your EMI if you opt for a reschedule. 

If there are EMI missouts, a delayed penalty at 2% of the EMI amount along with charges for the dishonour of the Standing Instructions will be charged, and these charges will be added to the EMI of the subsequent month.

The three main factors that impact the Personal Loan EMI are:

Loan amount: The amount sanctioned to you as per your eligibility is the loan amount. The EMI will be fixed based on this amount along with the applicable interest. The higher the loan amount, the higher will be the EMI and vice versa.

Rate of Interest: This is the factor that can impact the EMI several times during the loan tenure. The EMI lowers when the interest rates decline and will increase when there is a hike in the interest rates.

Tenure: Tenure majorly helps you to plan the EMI as per your budget. You can scale up the tenure if you want to balance the EMI with your monthly budget. If you want to reduce the cost of the loan, you can choose a lower tenure with a higher EMI.

The Personal Loan EMI Calculator Federal Bank is beneficial in estimating the EMI to suit your pocket and understanding the cost of the loan as it gives an idea of the total interest payable for a chosen tenure. But there are other charges like processing charges, prepayment charges, delayed penalty and EMI dishonour charges that the personal loan EMI calculator will not tell you. You can get this information from the bank branch or by calling the customer care helpline of the bank.