Indian Bank is one of the public sector banks established during the Swadeshi Movement in 1907. The Bank has several customised deposit and loan products. The Bank caters to the Corporate, Industrial as well as Retail Sectors.
The Bank has a PAN India presence with over 6000 branches. The popular retail loan products of the Bank are home loans, vehicle loans, education loans etc. Under each of these products, there are various schemes to suit the requirements of the customers.
Indian Bank offers personal loans at an interest as low as 9,20% p.a. with a flexible repayment period of up to 84 months. To avail of the loan at an affordable EMI, use the Indian Bank Personal Loan EMI Calculator and arrive at the EMI to suit your budget. With a repayment period as long as 84 months, it will not be difficult to obtain the desired amount at an EMI that does not burn a hole in your pocket.
Before applying for a personal loan, you will have to arrive at the funds available to repay the loan in EMIs that have to be consistently done during the entire loan term. While consolidating your debts and expenses, you should also keep in mind that the debt to income ratio is one of the eligibility criteria for a personal loan.
The debt to income ratio stipulated by Indian Bank is 40% of the gross salary after providing for all your existing liabilities and other obligations, including the proposed EMI. To make this calculation, you can use the Indian Bank EMI Calculator for Personal Loan. How to use the calculator is explained below.
Knowing the interest that you pay for the amount you are about to borrow is essential to understanding the cost of the loan. This will prompt you to look for other options to reduce the cost of the loan. The mathematical formula applied to calculate the interest is EMI = [P x R x (1+R)^N]/[(1+R)^N-1] Here
EMI = Equated Monthly Installment.
P = Principal amount
R = Rate of Interest
N = Loan Repayment Tenure in months
Along with the EMI, this formula provides the total interest payable for certain tenure. You can reduce the cost of the loan by either going in for a personal loan at an economical interest rate or by reducing the tenure by paying a higher EMI. For the choice of the interest rate, you will have to make a comparison of the current interest rates running in the market.
Know in detail: Simple Interest Formula Calculation.
You have two options to calculate the EMI applying the mathematical formula mentioned above. If you are a mathematical wizard, you will opt for a manual calculation. But if you opt for an easy method, then you will prefer using the Indian Bank Personal Loan Interest Rate EMI Calculator that will give you the EMI as well as the total interest payable in a jiffy. The other benefits of using the Indian Bank Personal Loan EMI Calculator are:
Easy to use: There is no special skill required to use the calculator. All you need to know is to access the calculator and provide the required input in the relevant box. The result will be given in a matter of seconds.
Round the clock availability: The calculator is available 24x7, 365 days and can be accessed from anywhere across the globe.
Helps Finance Management: Knowing the affordable EMI beforehand helps you to manage your funds in such a way that you will be left with enough funds for sustenance till the next payday after providing for all your existing liabilities and other obligations, including the proposed personal loan EMI.
Eliminates the scope for errors: There will be no scope for errors, and the result will be 100% accurate.
The ordeal of calculating the EMI that fits your pocket will be beneficial only if the value is accurate and reliable. You cannot risk errors when you are planning your finances for the long term. You should use the Indian Bank Personal Loan EMI Calculator for the following reasons.
Planning a personal loan to suit your budget is as important as cutting the cloth to fit the size. Calculate the EMI to suit your budget using the Indian Bank Personal Loan EMI Calculator. With the calculation, you will also be aware of the loan amount you will be eligible for before applying for the loan. By applying for a loan that you are eligible for, you can be assured of the loan approval provided you satisfy the other eligibility criteria stipulated by the Bank.
This exercise is recommended to ensure that you do not make a commitment that you cannot sustain for the long term. You can choose a plan that is convenient for you by changing the loan amount and the tenure. The Indian Bank EMI Calculator for Personal Loan will facilitate the calculation of EMI multiple times without consuming much time.
The three major factors that affect the Indian Bank Personal Loan EMI are the loan amount, rate of interest and tenure. There are yet some more factors besides these basic factors that affect the EMI of the personal loan. Read further to understand how the various factors impact the EMI.
Loan amount: The amount that is sanctioned as per your eligibility is the loan amount that you are going to borrow. The EMI largely depends on the quantum of the loan. If the loan amount is higher, the EMI will be higher, and if the loan amount is lower, the EMI will be lower. While you are calculating the EMI to suit your pocket, you can change the loan amount till you arrive at the desired result.
Rate of Interest: The rate of interest charged by the Bank depends on the benchmark rate fixed by the RBI. The banks have individual rights to charge interest above the benchmark rate fixed by RBI. The rate of interest fixation is solely at the discretion of the lender you choose. You can get a better rate if you have a good credit score, high income and share a good relationship with the lender. The higher the rate of interest, the higher will be the EMI and the lower the interest rate, the lower will be the EMI.
Repayment tenure: The period provided to repay the loan in instalments is the repayment tenure. This has a great impact on the EMI as well as the total cost of the loan. Though the cost of the loan is determined by the rate of interest charged, the period for which you pay the interest is also of great importance and will impact the total cost of the loan. A longer-term means a lower EMI, and a shorter-term means a lower EMI.
Repayment Plan: There are various repayment plans provided by lenders. Most of them have a fixed repayment plan where the EMI will be fixed for the entire tenure at the same level. But some of them provide Step-up as well as Step-down EMI. A Step-up EMI is beneficial for youngsters who have just begun their career and cannot afford a higher EMI in the initial stages. The EMI will be fixed at a lower level during the initial repayment term and will increase subsequently as the income increases.
The Step-down EMI will be beneficial for borrowers who are at the fag end of their careers. They will be able to afford higher EMI when they are in service, whereas after retirement, their income depletes, and they will not be able to manage higher EMI. For such borrowers, the EMI will be higher during the initial term of repayment and will decrease subsequently to suit their income level.
The Personal Loan EMI Calculator will give us an idea of the EMI for a certain loan amount for a certain period at a certain rate of interest. It also tells us how much interest we will be paying for the amount borrowed. It even gives the interest and principal break-up of the EMI month on month for the entire tenure. Besides this, there are certain details that have to be collected to rate the exact cost of the loan. These details will not be given by the EMI Calculator but have to be obtained from the Bank either by visiting the bank branch or by calling the customer care helpline of the Bank. The additional details that the Personal Loan EMI Calculator will not tell you are:
Processing charges: The processing charges at 0.50% to 3% of the loan amount will be collected at the time of handing over the application or at the time of disbursal of the loan.
Prepayment/foreclosure charges: In order to discourage closure of the loan account before maturity, the banks charge prepayment/preclosure charges at 2% to 5% of the outstanding loan amount. Some of the banks do not collect prepayment/foreclosure charges if the loan is availed by individuals at a floating rate of interest.
Penalty: If you miss out on EMI on the due date but make payment subsequently, you will be charged with a penalty of 2% of the EMI amount for the delayed period.
The rate of interest options provided for a personal loan is a fixed rate of interest and a floating rate of interest. At a fixed rate, the rate of interest will not vary with the market rate fluctuations, and so the EMI will remain constant. Whereas in a floating rate, the interest rate varies as per the fluctuations in the RBI rate. Here the EMI will vary as per the variation. EMI will be lower if the interest rate is lower and higher if the rate is higher.
You can opt for EMI payment via ECS, automated debit to the bank account or depositing the EMI cheque at the Bank on or before the EMI due date. Cash payment for the EMI is also allowed if the EMI is less than Rs. 50000/- but with handling charges.
The factors that affect the Personal Loan EMI are the rate of interest, loan amount and tenure.
The maximum tenure permitted for Indian Bank Personal Loan is 84 months.
No. The Personal Loan EMI Calculator will not tell you about the processing charges. You will have to collect the information from the Bank.