RBL Bank is known for disbursing personal loans quickly, making it a perfect alternative for obtaining funds quickly. The loan sum, which can go up to Rs. 20 lakh, can be utilized for a range of things, including house renovations, travel, marriage, and even medical expenses. However, before taking out any loan, you should always prepare your monthly budget ahead of time to avoid any financial difficulties down the road.
To help you plan better, we have included an easy-to-use online EMI calculator and also addressed essential issues such as factors that affect your monthly payout and how you may pay your EMIs online.
How Does the RBL Bank Personal Loan EMI Calculator Work?
Equated Monthly Installments, often known as EMIs, are the payments you must make on a monthly basis to repay your personal loan. These EMIs may account for a major percentage of your monthly budget, so it's critical to figure them out ahead of time. It not only helps you better arrange your monthly finances, but it also protects you from future financial issues. Using the RBL Bank personal loan EMI calculator 2021, you can now easily calculate your monthly EMIs. You may also use the Afinoz Personal Loan EMI Calculator to get an instant estimate of your monthly EMI payment. This user-friendly tool allows you to experiment with different loan parameters to get the best acceptable EMI amount for you.
The Three Variables that make up an EMI Calculator are as follows:
- Loan Amount: This is the amount of money you've requested as a personal loan from RBL Bank. It's worth noting that the bank offers personal loans ranging from Rs. 1 lakh to Rs. 20 lakh.
- The term "loan tenure" refers to the duration of time you have to repay the loan. When it comes to RBL Bank personal loans, it ranges from 12 to 60 months.
- The rate at which interest is levied on a loan is referred to as the interest rate.
The flat-rate approach or the declining balance method can both be used to calculate interest. RBL Bank calculates interest using the declining balance approach. RBL Bank offers interest rates ranging from 14 percent to 23 percent.
All of these factors must be entered into the RBL Bank EMI formula in order for the outcome, i.e. monthly EMI payout, to be displayed immediately.
The Formula for Calculating Personal Loan EMIs
The EMI calculation formula is mostly determined by the lender's interest calculation technique. Interest might be levied on the total loan amount or just the amount that is owed. Let's look at how the EMI computation differs in these scenarios:
When the Flat Rate Method is used to Calculate Interest
Interest is always levied on the total loan amount borrowed in this approach.
(Principal + Interest)/ Loan Tenure in Months = EMI via Flat Rate Method
For example, Shagun has asked for a personal loan of Rs. 20 lakh for a duration of 5 years at a fixed rate of 18 percent. Let's look at the EMI she has to pay each month.
Principal = Rs. 20 lakh
Loan Tenure = 5 years = 60 months
Interest for 1 year = 18% per annum of Principal = 18% of Rs. 20 lakh = Rs. 3.6 lakh
Thus, interest for the entire loan tenure of 5 years = Rs. 3.6 lakh x 5 = Rs. 18 lakh
Thus, monthly EMI payout for Shagun = (Rs. 20 lakh + Rs. 18 lakh )/60 = Rs. 63,333
When the Reducing Balance Method is Used to Calculate Interest
Interest is only levied on the outstanding loan amount in this technique, not on the total amount borrowed. As a result, when you adopt this strategy, you save a lot of money on interest.
EMI by reducing Balance Method = [P x (R/100) x {1+(R/100)}^N]/[{1+(R/100)}^(N-1)]
Where,
EMI refers to the Equated Monthly Installments;
- P refers to the principal/ loan amount;
- R refers to the interest rate on personal loan (annual interest rate/12)
- N refers to the Loan tenure in months.
For example, Amita has filed for a personal loan of Rs. 20 lakh for a period of 5 years at an 18 percent declining balance rate of interest. Let's look at the EMI she has to pay each month.
Principal = Rs. 20 lakh
Loan Tenure = 5 years = 60 months
Monthly Interest Rate = 18/12 = 1.5% per month
Thus, monthly EMI payout for Amita = [20 lakh x (1.5/100) x {1+(1.5/100)}^60]/[{1+(1.5/100)^(60-1)] = Rs. 50,787
How do I pay the EMI on my RBL Bank personal loan?
RBL Bank personal loan EMIs can be paid in the various ways:
- Postdated Cheques (PDCs): You can use PDCs to pay your monthly EMIs at the bank. On the due date, the amount on the check will be deducted from your account.
- NACH stands for National Automated Clearing House, and it is an online payment system. NACH allows you to pay your RBL Bank personal loan EMIs from any bank account on the due dates. You'll no longer have to worry about writing checks or remembering due dates.
- If you have an account with RBL Bank, you can utilize this method to pay your monthly EMIs, just like you can with NACH. On the due dates, the EMI amount will be automatically deducted from your account.
RBL Bank Personal Loan EMI Influencing Factors
The RBL Bank personal loan EMI is influenced by the following factors:
- The amount of money you want to borrow as a personal loan is referred to as the loan amount. Generally speaking, as the loan amount grows, so does the EMI.
- The amount of months/years available for loan repayment is referred to as the loan tenure. The EMI falls as the loan term lengthens. It may, however, result in higher interest payment. As a result, it's a good idea to strike a balance between the EMI and the total interest you'll pay on the loan.
- The rate at which interest is levied on the loan amount is referred to as the interest rate. In general, a high rate of interest correlates to a high EMI. As a result, you should constantly examine several loans offers before choosing one. To make an informed decision, you can utilize the Afinoz website to compare loan offers from 30+ lenders at the same time.
Conclusion:
Lastly, RBL Bank personal loan 2021 comes at low-interest rate with flexible repayment tenure and the best part is that you can know your EMI with RBL Bank personal loan EMI calculator 2021. You can also do the same with the Afinoz personal loan EMI calculator.
