|
0
|
10L
|
20L
|
30L
|
40L
%
|
5
|
7.5
|
10
|
12.5
|
15
|
17.5
|
20
|
0
|
1
|
2
|
3
|
4
|
5

49,919

69,80,559

#### Total Payments

1,19,80,559

Break-up of Loan Amount
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## IDFC First Personal Loan EMI Calculator

EMI or equated monthly instalment is the fixed amount that a borrower pays over the tenure of a loan in order to service the loan. The EMI gets deducted from your bank account every month at a decided date till the entire loan is repaid. Calculation of a loan EMI helps you determine the monthly amount that you should keep aside to service the loan every month and plan cash flows and budgets accordingly.

IDFC First is the country's leading NBFC (Non-Banking Financial Corporation) that offers Personal Loan at attractive interest rates and attractive terms and conditions. IDFC First offers Personal loans with EMIs as low as 2,327 per Lakh for a 60 months tenure. The lowest rate of interest on Personal Loans as of now is 14% per annum.

## IDFC First Personal Loan EMI at different tenures

Here is a tabular representation of IDFC First Personal Loan EMI according to different loan tenures and amounts calculated at 14% interest rate.

 Loan Amount in 2 Years 3 Years 5 Years 1 Lakh 4,801 3,418 2,327 3 Lakh 14,404 10,253 6,980 5 Lakh 24,006 17,089 11,634 10 Lakh 48,013 34,178 23,268

The above table indicates that higher the loan amount, higher is the EMI. However, the EMI is also influenced by the tenure of the loan. Higher the loan tenure, lower is the EMI for a fixed loan amount.

For e.g. - A 2-year Personal Loan of 1 Lak has an EMI of 4,801 while the same amount borrowed over 3 years reduces the EMI to 3,418. However, it must be noted that in absolute terms the total interest you pay over three years is higher than that paid over two years.

EMI is made up of two components - Principal and interest. While the value of EMI is fixed throughout the tenure of the loan, the individual components vary every month.

During the initial months of loan servicing, the interest component is higher and the principal repayment component is less. As you service the loan, slowly the interest component reduces while the principal repayment amount reduces keeping the EMI constant throughout.

## Formula to Calculate Monthly EMI & Interest Amount

The formula used to calculate Personal Loan EMI is as follows -

P*r* (1+r)^n/([(1+r)^n]-1)

Where,

P = Loan amount to be borrowed and can range from a minimum of 50,000 to a maximum of 25 Lakhs

r = Rate of interest/month. The going rate of interest for IDFC First Personal Loan is 14.00%

n = tenure in months. For IDFC First, this can be 6 to 60 months

## How to calculate IDFC First Personal Loan EMI Calculator

MyMoneyMantra has developed a convenient and easy Personal Loan EMI calculator that is user-friendly and delivers fast results. To use the EMI calculator at MyMoneyMantra, you have to follow the following steps:

• Click on the financial tools tab on the MyMoneyMantra website and select the EMI calculator option.
• Enter parameters necessary for calculating the EMI - The loan amount, interest rate and the tenure of the Personal Loan.
• As soon as you enter the loan parameters, you will instantly get a monthly payable EMI amount.
• You can change the loan amount and tenure to compute EMIs for different combinations so that you can decide which option best suits your need.
• After deciding which combination of the loan amount, tenure and EMI you are comfortable with, you have the option to check your loan eligibility, get the best loan quotes online, an option to apply for IDFC First Personal Loan online through the MyMoneyMantra.

## Benefits of Using IDFC First Personal Loan EMI Calculator

MyMoneyMantra's EMI calculator performs the complex EMI calculations instantaneously so that borrowers can try various combinations of loans and decide on the best option that suits their monthly cash flows and budgets. This ensures that a borrower is not overburdened with an excessive EMI amount.

MyMoneyMantra has a very convenient and easy to use EMI calculator. A person who is not very tech savvy or mathematically oriented can also easily compute EMIs for different combinations. Some advantages that the MyMoneyMantra EMI calculator offers are:

• Anytime Access: Since the MyMoneyMantra Personal Loan EMI calculator is available online, you can access it at any time 24x7. There is no requirement to visit a bank or an agent. You can use the calculator for multiple combinations till you arrive at a combination that best serves your purpose.
• Accurate Results: Manual EMI calculation requires solving complex polynomials that are tedious and time-consuming. Since manual calculations of a polynomial equation are tough, there is a scope for error. Hence, EMI computation is best done using a computer program. The EMI calculator on MyMoneyMantra offers accurate calculation instantaneously and hence is extremely convenient.
• Saves You from Time-consuming and Complex Calculations: Generally, calculating the roots of a polynomial equation manually takes a very long time. MyMoneyMantra EMI calculator makes your task easier since it has an inbuilt formula that is programmed to perform time-consuming complex polynomial calculations of EMI instantly. You get instant results as soon as you enter the loan parameters.
• Aids the Financial Planning Process: Since deciding at the EMI is an iterative process, the MyMoneyMantra EMI calculator helps you consider all the permutations and combinations depending on your monthly budget and planned cash flows. EMI calculator is very convenient in financial planning.
• You Can Use This EMI Calculator for Every Loan: The MyMoneyMantra EMI calculator is designed so that you can calculate EMIs on all types of loans. The calculator is not restricted only to Personal Loans. You can evaluate Home Loans, Education Loans and other types of loans in the same EMI calculator.

## Quick Highlights of the IDFC First Personal Loan

Purpose of Loan: IDFC First provides multi-purpose Personal Loans to all eligible applicants. The Personal Loans can be used by the borrower when there is a lump sum cash need for medical emergencies, children's education, marriage, paying off old loans, foreign vacation, and other personal needs.

Key Features of IDFC First Personal Loan

• Salaried individuals or self-employed professionals are both eligible for this loan.
• A Personal Loan is offered to borrowers between the age of 23 and 58 years (if they are salaried) and 28 to 68 years (for self-employed individuals).
• The minimum Personal Loan amount is 1 Lakh while the maximum Personal Loan amount offered by IDFC First is 25 Lakhs provided the applicant is eligible.
• The tenure of the Personal Loan is between 1 and 5 years.
• The current Personal Loan interest rates are in the range of 14% to 18%.
• Based on current interest rates, the lowest EMI is 2,327 per Lakh.

Processing Fees: IDFC First charges a processing fee of 1% of the loan amount payable at the time of loan application.

Special Schemes: IDFC First offers customised Personal Loans to special categories of borrowers who work for the government or reputed organisations. IDFC First offers discounted interest rates of favorable terms and conditions to these special category borrowers.

## Factors Affecting IDFC First Personal Loan EMI

The EMI on a Personal Loan is decided by three parameters - Loan Amount, Interest Rate and the Tenure of the loan. A change in any of the parameter affects the EMI.

• Loan Amount: The amount of loan taken by a borrower is called the loan amount. Intuitively, higher the loan amount, higher is the EMI. At IDFC First, the minimum loan amount is 1 Lakhs while the maximum Personal Loan amount is 25 Lakhs.
• Interest Rate: Interest rate refers to the cost of borrowing. Higher the interest rate more is your loan EMI. At IDFC First, for salary account holders, they offer attractive and affordable interest rates which can reduce the overall cost of the loan and the EMI. Based on current rates, the lowest interest rate offered is 14%. You can compare the interest rates by other lenders on MyMoneyMantra before choosing the IDFC First for a Personal Loan.
• Loan Tenure: This refers to the total duration over which you have to service the loan. You need to pay monthly EMI for the entire loan tenure. Higher the tenure, lower is the EMI. However, at IDFC First, we provide a Personal Loan for a maximum tenure of 5 years.

## How Does Personal Loan EMI Change with Pre-payment

IDFC First provides you an option of pre-payment where you can pay a lump sum amount so that your outstanding loan amount reduces. Post prepayment, the calculations of EMI changes. You can choose from the following two options after pre-payment:

• Keep EMI the same while reducing the loan tenure: This option helps you close the entire loan earlier and so your total interest outgo reduces. This is suitable for borrowers who have cash flows to service the same level of EMIs comfortably.
• Lower the EMI and keep the loan tenure the same: This option helps you to lower your EMI while keeping the loan duration the same as that before prepayment. This option allows the borrower to get a higher monthly surplus, which can be used, for investment purposes. In case the borrower anticipates higher expenses in the coming months, this option is preferable.

## Tips to Decide the Right Amount of EMI

• Decide the loan amount: It is important that you approach a bank only after you have an estimate of the amount that you need to borrow based on your need. A Personal Loan is an unsecured loan and hence the processing charges and the interest rates are quite high. Just because you are eligible for a higher loan amount doesn't mean you need to borrow a higher amount since this will require higher interest payment. You need to choose a loan that has an EMI that you can service comfortably after accounting for all your cash flow needs.
• Review your current obligations: It is advisable that you review your monthly take home income and the monthly expenses including the EMIs on existing loans, Credit Card outstanding amount and other one-time expenses before taking a loan. This review shall help you compute the monthly surplus amount that you have. Based on this, you can decide on a comfortable EMI.
• Calculate your IDFC First Personal Loan eligibility: IDFC First thoroughly accesses your monthly cash flows and your financial position before arriving at the amount of loan that can be sanctioned to you. Loan amount eligibility entails computation of your repayment capacity. The following two methods are used to calculate the loan amount eligibility.
• Multiplier based loan amount eligibility: Based on multiple factors, IDFC First calculates your loan amount eligibility by applying a multiplier to your net take home salary. The multiplier is generally between 9 and 18. It is decided based on the city of residence, the reputation of your employer, the stability, size, turnover, and growth of the organisation that you work for. The formula used in the loan amount eligibility calculation is Loan Eligibility = (Your Net Salary) x (multiplier of 9 to 18).
• FOIR based loan amount eligibility: FOIR stands for Fixed Obligation to Income Ratio. This ratio can be used to evaluate the maximum EMI you can service based on your current monthly income and monthly expenses including EMIs on existing loans, Credit Card bills and other expenses. Based on the city of residence, the bank applies a certain ratio to your income to estimate your monthly expenses and then adds your other EMI obligations to calculate your fixed obligations. Your monthly fixed obligations divided by the monthly take home salary gives your FOIR. IDFC First lends to applicants that have FOIR of up to a maximum of 0.45. The FOIR gives an idea of the maximum amount of EMI that a borrower can comfortably service.

IDFC First will calculate your Personal Loan amount eligibility using the above two methods and sanction you a lower loan amount arrived at, by the above two methods.

A lot of qualitative factors are also used by IDFC First to calculate your loan eligibility and hence your assessment of loan amount could be different than what you anticipated. Pre-paying the existing loans will help you be eligible for higher loan amounts.

## FAQs on IDFC First EMI Calculator

### Question - What factors are used by IDFC First EMI Calculator to compute EMI on a Personal Loan?

Answer - IDFC First computes EMI based on three parameters - Interest Rate, Loan Amount and the Loan Tenure.

### Question - Should I calculate EMI before taking a loan from IDFC First?

Answer - It is advised to calculate Personal Loan EMI using EMI calculators before applying for a Personal Loan. Knowing your EMI prior to taking up a loan helps in multiple ways as:

• Check whether the EMI matches your monthly budget and whether you have an adequate monthly surplus to service the Personal Loan. If the EMI is higher, you can increase the loan tenure.
• Plan monthly expenses according to EMI
• Opt for prepayment in case of surplus amount

### Question - What is the lowest EMI per Lakh offered by IDFC First on a Personal Loan?

Answer - Based on current interest rates, IDFC First offers Personal Loan at attractive interest rates starting at 14%. Based on this rate, the lowest EMI on loan amount of 1 Lakh is 2,327. However, IDFC First offers attractive interest rates for salary account holders or existing customers on the case to case basis.

### Question - Does IDFC First offer prepayment options? If so, what are the charges?

Answer - Yes, IDFC First offers prepayment option after 6 months. The charges for foreclosure of a Personal Loan are 5%.

### Question - What are the processing fees on a Personal Loan from IDFC First?

Answer - IDFC First charges a processing fee of 1% of the Personal Loan amount payable at the time of loan disbursement.

### Question - What is the minimum credit score necessary to be eligible for a Personal Loan from IDFC First?

Answer - IDFC First generally prefers a loan applicant to have a good credit score. An applicant with a CIBIL score of less than 700 is generally not sanctioned a Personal Loan. The minimum CIBIL score necessary is 700.

### Question - How does a Personal Loan repayment happen?

Answer - Repayment of a Personal Loan happens in the form of an EMI (Equated Monthly Instalment) directly from the customer's bank account. Every month a fixed amount is deducted from the borrower's bank account through ECS. Initially, one has to also offer post-dated cheques.

### Question - Does IDFC First allow a co-applicant for a Personal Loan?

Answer - Yes, co-applicant is allowed while taking a Personal Loan. Having a co-applicant can increase the loan amount since the income of both the applicant is considered while evaluating Personal Loan eligibility.