Tata Capital provides salaried and self-employed persons with personal loans up to Rs. 25 lakhs. The loan has a simple approval process and a rapid disbursement. In an emergency, a personal loan is a great alternative, but you should always manage your monthly budget ahead of time. So read this post to learn about many components of EMI calculation and to find out how much your monthly EMI payments will be for Tata Capital personal loan.
EMI Calculator for Tata Capital Personal Loans
Taking out a personal loan is a convenient alternative because you may borrow a large sum of money and pay it back to the lender in monthly installments. Equated Monthly Installments are the name for these monthly payments (EMIs). EMI payments must be managed as part of your monthly budget, therefore it is usually a good idea to figure out your EMIs ahead of time to avoid any problems later.
Using the Afinoz personal loan EMI calculator, you can simply calculate your monthly payments. Simply enter the loan details, such as the loan amount, term, and interest rate, to get an instantaneous estimate of your EMI. You may also use the EMI calculator to experiment with different combinations of these loan factors to find the best EMI.
What is an EMI Calculator and How Does It Work?
The monthly payout is calculated using the following three parameters, which are automatically given into the calculation by the calculator.
- The loan amount you intend to request as a personal loan from Tata Capital is referred to as the loan amount. In general, the EMI payment rises as the loan amount rises. Tata Capital personal loans in sums ranging from Rs. 75,000 to Rs. 25 lakhs.
- The term “loan tenure” refers to the length of time it takes to repay a loan. The term of a Tata Capital personal loan might range from one to six years, depending on the loan option selected. While a longer loan tenure results in reduced individual EMI payments, it may also result in higher interest payments. As a result, before taking out a loan, you should always try to strike a balance between the EMI amount and the overall interest payable.
- The rate at which interest is charged on the amount borrowed as a loan is referred to as the interest rate. In general, a high rate of interest corresponds to larger EMI payments. As a result, you should always examine different loan offers from various lenders before choosing one. Afinoz’s platform allows you to compare loan offers from 30+ lenders on a single platform.
The formula for Calculating Personal Loan EMIs
The EMI calculation formula is determined by the bank’s or NBFC’s interest computation procedure. The flat rate approach or the declining balance method can both be used to calculate interest. Let’s look at the formulas for calculating EMI using both of these interest calculation methods.
- Flat Rate Approach: This method calculates interest on the whole loan amount borrowed throughout the entire loan term.
(Principal + Interest)/ Loan Tenure in Months = EMI
For example, Mr. Prasad took out a personal loan of Rs. 10 lakh for a period of 24 months at a fixed interest rate of 15%. 1 year’s interest = 15% annual interest on principal = 15% of Rs. 10 lakhs = Rs. 1.5 lakh
2 years’ interest, i.e. the entire loan term = Rs. 3 lakhs
Mr. Prasad’s monthly EMI payments are therefore (Rs. 10 lakh + Rs. 3 lakh)/24 = Rs. 54,167.
- Reducing Balance Method: Interest is calculated on the outstanding loan amount rather than the whole amount initially borrowed under the Reducing Balance Method. As a result, when this strategy is applied, you save on the interest component.
Balance Method = [P x (R/100) x 1+(R/100)N]/[1+(R/100)(N-1)] EMI by lowering
Where,
EMI is for Equated Monthly Installments, and P stands for the loan principle.
R is the monthly interest rate, which is equal to the annual interest rate/12; N denotes the loan term in months.
Ms. Sharma, for example, accepted a personal loan of Rs. 15 lakh for 36 months at a declining balance interest rate of 12% p.a.
Monthly interest rate = Annual interest rate divided by 12 = 12/12 = 1% every month.
Ms. Sharma’s monthly EMI payment = [15 lakh x (1/100) x (1+1)36]/ 1+ (1+1)(36-1)] = Rs. 49,821
EMI Calculator for Tata Capital Personal Loans
Tata Capital, a non-banking financial company (NBFC), calculates interest using the declining balance approach. The EMI payments for a Tata Capital personal loan is shown in the table below for various combinations of loan parameters:
| Loan Amount (Rs.) | Interest Rate (p.a.) | Tenure (months) | EMI (Rs./month) |
| 2 lakh | 15% | 12 | 18,052 |
| 75,000 | 13% | 24 | 3,566 |
| 10 lakh | 18% | 36 | 36,152 |
| 24 lakh | 14% | 48 | 65,584 |
| 15 lakh | 15% | 60 | 35,685 |
| 20 lakh | 12% | 72 | 39,100 |
How to Make EMI Payments on a Tata Capital Personal Loan?
You can pay your Tata Capital personal loan EMIs in one of three ways:
- Auto debit/Standard Instructions: If you use this method, your account will be deducted automatically every month on the due date for EMI payment. As a result, you won’t have to worry about remembering the due date or writing checks every month. Fill out a form to activate the mandate if you prefer this approach.
- Post-dated cheques (PDCs): You can also use PDCs to pay your Tata Capital personal loan EMIs. On the due date specified on the check, the EMI amount is deducted from the account.
- Pay Your Loan EMIs Online: You can pay your loan EMIs online as well. This can be done via the online payment site utilizing internet banking, debit card, or UPI.
Conclusion:
Lastly, a personal loan EMI calculator is simple and free to use all you need is basic information as mentioned above. Apart from Tata Capital, you can also find other EMI calculators such as Afinoz personal loan EMI calculator.
