A Personal loan is one of the most important and popular banking products that empowers people by fulfilling their urgent needs. With this facility, individuals can borrow a certain loan amount from a lender, and they can repay it within a fixed tenure. In the case of a personal loan from YES Bank, this tenure can be a maximum of 60 months. This means that an individual can repay his/her loan amount within this period. But do you know about the role of YES Bank Personal Loan EMI Calculator in choosing the right tenure for you?
Well, if you don’t know about it, you don’t need to worry. In this article, we will be telling you about how you can choose the right tenure for yourself when you are going for a YES Bank Personal Loan. Other than this, we will also be telling how this tool works and what are the details you will need. So, without any further delay, let’s start!
Choose Suitable Tenure with YES Bank Personal Loan EMI Calculator
Let’s understand the thing in a simple way first. When you take a personal loan, you can repay the loan amount plus interest on it via monthly installments. This is known as the EMI amount which consists of a part of both principal and interest amount. An individual needs to pay this EMI amount every month towards repayment of the loan.
So, let’s say you choose a tenure of 36 months, you will need to pay 36 monthly installments towards the loan. So, how can you choose the right tenure? The answer is YES Bank Personal Loan EMI Calculator.
With this tool, you can have an estimate about the EMI amount for the given tenure. So, suppose that an individual who is earning INR 40,000 per month wants to borrow INR 4 lakh at an YES Bank Personal Loan Interest Rates of 13.50% per annum. But he is confused about whether to choose a 5-year tenure or 3-year tenure.
Well, if he were to take a 5-year tenure, the EMI amount for this loan amount will be INR 9,204 along with the interest outgo of INR 1,52,236.
On the other hand, when he would take a 3-year tenure to repay his loan, the EMI amount would be INR 13,574, and an interest amount of INR 88,668.
So, you can see that choosing a longer tenure (5 years), an individual will have to pay a lower EMI amount as compared to a shorter tenure of 3 years; the difference is almost INR 4,000 per month. On the other hand, he would have to pay a lower interest outgo on choosing the 3-year tenure.
So, you can see that with the help of YES Bank Personal Loan EMI Calculator, an individual can choose the suitable tenure for himself or herself. Each has its own perks. If you want to pay a lower interest but higher EMIs, choose a shorter tenure and vice versa.
Must be thinking about the details you will need to use this amazing tool? Well, you will only need three details — Required Loan Amount, YES Bank Personal Loan Interest Rates, and Tenure. On putting these details, you will get the results within a flash. Apart from EMI amount, you will also get Interest Outgo, and Amortization Table. Other than choosing the suitable loan tenure, you can also use this calculator for different purposes.
For example, if you are going to opt for a personal loan balance transfer facility, you could have an estimate of the savings in this process. Other purposes are prepayment of your personal loan and understanding the impact of personal loan interest rates on the EMI amount.