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How to check the monthly EMI on a Personal Loan before applying?

Taking out a personal loan can be a great way to manage big expenses, whether it’s for medical bills, education, or a major purchase. However, it’s essential to understand how much you would be paying back each month. The amount you repay in Equated Monthly Installments (EMI) affects your monthly budget significantly. In this article, we would break down the process of checking the EMI on a personal loan before applying, making it easy to understand and follow. We would also discuss how you can use the Airtel Thanks app to check EMI before applying for a personal loan.

What is EMI?

The Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date, each calendar month. EMIs are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full.

Why is it important to Check EMI Before Applying for a Personal Loan?

It is important to check EMI before applying for a personal loan and here’s why:

  • Budget Effectively: Knowing your EMI helps you plan your monthly expenses better.
  • Avoid Over-borrowing: It ensures you don’t take on more debt than you can handle.
  • Compare Loan Offers: It allows you to compare different loan offers from various lenders.
  • Financial Planning: Helps in long-term financial planning and management.

Factors Affecting Your EMI

Several factors influence the EMI you will need to pay on your personal loan:

  1. Loan Amount: This is the total amount of money you borrow from the lender.
  2. Interest Rate: The rate at which interest is charged on the borrowed amount.
  3. Loan Tenure: The duration over which you choose to repay the loan.

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Steps to calculate EMI Without Using Formulas

Understanding the Components

  1. Principal Amount: Decide how much money you need to borrow.
  2. Interest Rate: Understand the annual interest rate offered by the lender.
  3. Loan Tenure: Decide the period over which you want to repay the loan.

Also Read: Learn how Credit Card EMI is Calculated

Using Online EMI Calculators

If manual calculations seem complex, you can use online EMI calculators available on various financial websites and mobile apps. These tools are user-friendly and provide instant results. Here’s how you can use them:

  1. Enter Loan Amount: Input the principal amount you wish to borrow.
  2. Enter Interest Rate: Input the annual interest rate offered by the lender.
  3. Enter Loan Tenure: Select the loan tenure in months or years.
  4. Calculate EMI: Click on the ‘Calculate’ button to get your EMI amount instantly.

Checking EMI with the Airtel Personal Loan

Airtel offers personal loans through its Airtel Thanks app, providing an easy and quick way to access loans. Here’s how you can check the EMI for an Airtel personal loan:

  1. Download the Airtel Thanks App: Available on Google Play Store and Apple App Store.
  2. Login or Register: Use your Airtel number to log in or register on the app.
  3. Head to Personal Loans: Go to the financial services section and select personal loans.