Several people end up missing their repayments of Personal loans because of one reason: they didn’t estimate the EMI amount before choosing the personal loan. When you opt for a personal loan that is way beyond your repayment capacity, this generally happens. When you miss your repayments, your credit score also dips drastically. So, how to know your EMI before going for a personal loan? Well, the answer is to use the Bank of India Personal Loan EMI Calculator. With this amazing tool, individuals can easily know their monthly installments.
Thinking about how to use this tool? Well, in this article, we will cover everything related to the same as well as the impact of Bank of India Personal Loan Interest Rates on EMI. So, let’s start!
Details to use Bank of India Personal Loan EMI Calculator
As you can see from its name, this is a Calculator. So, to use this you will be needing a few inputs. What are these inputs from which you will get the output? These details are Required Loan amount, Bank of India Personal Loan Interest Rates, and Tenure. Let’s talk about these inputs first.
The first thing is the Required Loan amount that can be as maximum as INR 10 lakh. You should choose this amount only according to your need and repayment capacity. A lot of times, people opt for a loan amount way over their needs and end up defaulting on their loan facilities.
After putting the loan amount, you will need to put Bank of India Personal Loan Interest Rates that range from 9.35% to 12.35% per annum. This also varies from one individual to another according to monthly income, employment type, city, Credit Score, etc.
The last thing you will need to fill in is the tenure that can be a maximum of 60 months. A longer tenure will make your EMIs lower but you will end up paying huge interest. While when you choose a shorter tenure, your EMI will be higher but interest outgo will be lower.
On putting these three details into the Bank of India Personal Loan EMI Calculator, you will get the EMI amount within seconds as well as the interest outgo and total amount payable. So, that’s how this tool works. Now, let’s understand it’s working in a personal loan prepayment.
Role of Bank of India Personal Loan EMI Calculator in Prepayment Facility
Prepayment of a loan is one of the finest ways to ensure maximum savings on a Personal loan. With the prepayment facility, individuals can pay off their principal outstanding balance before the fixed tenure. However, lenders ask for prepayment charges on it. Let’s understand how much money you can save with the prepayment facility with the Bank of India Personal Loan EMI Calculator.
Let’s say an individual has a 5-year personal loan of INR 6 lakh at a Bank of India Personal loan interest rates of 11.99% per annum.
For this amount, he must be paying an EMI of INR 13,344 while the interest outgo must be INR 2,00,618.
Now after paying 24 EMIs without any fail, he wants to make a part prepayment of INR 2 lakh. At this moment, his principal outstanding balance is INR 4,01,801 and he has paid the Total interest of INR 1,22,049 until now.
After making the prepayment of INR 2 lakh, the new outstanding balance would be INR 2,01,801
For this new amount, the EMI amount would be INR 6,702 for the next three years and you will be paying an interest amount of INR 39,461. However, if you choose to keep paying the same EMI, you would be able to pay the loan amount in the next 17 months which is almost 19 months earlier.
So, by choosing the prepayment facility, you can save around INR 6,642 on the EMI amount. We have done all of these calculations with the help of the Bank of India Personal Loan EMI Calculator.