When any lender, whether it’s a bank or Non Banking Financial Company (NBFC), offers a personal loan to a borrower, it gives them a definite period within which they need to repay the loan amount. So, how does an individual repay the loan amount? Well, you can choose to repay the personal loan via Equated Monthly Installments (EMI). This EMI amount is made up of two important things: a part of principal amount and a part of interest amount charged on it by the lender. But do you know that you can know your EMI amount with the help of Standard Chartered Personal Loan EMI Calculator?
Well, if you don’t know this fact yet, you should know it now. With this amazing tool, an individual can easily get to know the exact monthly installments he or she needs to pay towards the loan repayment. A fair percentage of individuals don’t use Personal Loan EMI Calculator before going for a personal loan. These types of people generally end up defaulting on their loan. So, in this article, we will talk about the usage of Standard Chartered Personal Loan EMI Calculator along with the impact of Standard Chartered Personal Loan Interest Rate on your monthly installments.
Details to use Standard Chartered Personal Loan EMI Calculator
There are only a handful of details that you will need at the time when you want to know your EMI amount with the Standard Chartered Personal Loan EMI Calculator. You only need Required Loan Amount, Standard Chartered Personal Loan Interest Rate, and Required Tenure (number of months) up to a maximum of 60 months. Put up these details into the tool, and you will get to know the exact monthly installments along with interest outgo and total amount you will pay during your loan period.
Let’s take an example. Suppose an individual wants to opt for a Standard Chartered Personal Loan of INR 7 lakh for a period of 5 years i.e. 60 months. The interest rate on this loan facility is 12.50% per annum. He wants to know the EMI amount for his loan amount so that he can manage his finances accordingly.
On putting these details into the EMI Calculator, the EMI amount will be INR 15,749. For the loan amount of INR 7 lakh, he would have to pay an interest amount of INR 2,44,913 over 5-year of his loan, that will make the overall amount payable as INR 9,44,913.
Now, let’s suppose the monthly income of this individual is INR 30,000, and he decided to take the personal loan of INR 7 lakh without using the EMI Calculator. As you can see the EMI amount of INR 15,749 is more than half of his monthly income. This is not a feasible situation both for borrower and lender. It may be possible that he won’t be able to get this loan amount. On the other hand, if he has a monthly income of INR 50,000 and zero existing obligations, he would easily get the required loan amount.
That’s why, always use the Standard Chartered Personal Loan EMI Calculator before making a final decision. If you choose a higher loan amount with an insufficient repayment capacity, you may end up missing your repayments and your credit score may affect negatively. So, choose a loan amount according to your need, so that you can repay it on time.