Your home is constantly in need of a little extra love. Whether you have been residing in it for decades or may have just moved in, a home needs regular fixes or, in some cases, a massive overhaul. Financing such renovations or improvements may come at a huge cost which may not necessarily be available in your bank account.
Luckily, you can opt for a personal loan that can also work as a home renovation loan. Before you pay for your home renovation expenses through a personal loan, you would need to consider the overall cost you may have to bear. A personal loan calculator can be an excellent way to know how much you will need to pay as EMI every month towards your personal loan for home renovations.
The personal loan calculator from ICICI Securities is an online calculator that helps you know the total loan repayment amount and the payable EMI in seconds.
How to Use the Personal Loan Calculator
A personal loan calculator can help you evaluate the EMI amount you need to pay every month towards the personal loan to refurbish or renovate your home. It is a simple, intuitive and easy-to-use online tool.
All you need to do is enter the principal amount, the rate of interest and the loan and duration or tenure to instantly get an indicative amount of the EMI you need to pay every month.
When you take a personal loan to renovate your home, it has a fixed repayment loan duration, with monthly repayments known as EMI. on obtaining the loan, you would need to pay these equated monthly instalments or EMIs over the entire loan duration.
A personal loan calculator is a critical tool that can help you calculate your home renovation loan based on crucial data such as the amount you borrow, the interest rate applicable on the loan, and the loan tenure.
Calculating the Personal Loan EMI Amount
Personal loan EMIs and calculated with the help of the following formula:
EMI = [P x (R/100) x {1+(R/100)} ^N]/[{1+(R/100)} ^(N-1)]
Here,
P = Principal Loan Amount or Amount Borrowed
R = Rate of Interest Applicable
N = Loan Duration in Months
EMI = Equated Monthly Instalments
Let's understand the above formula with the help of an illustration.
Assuming Mr. A takes a loan of Rs 2.5 lakhs at an interest rate of 10.4% for five years. According to the formula, the EMI for this loan amount will be Rs 5361.
To calculate all kinds of personal loan EMIs, the above formula is employed. However, it can be tedious to calculate the EMI manually and could be prone to error. Hence, using the online personal loan EMI calculator is convenient and swift and error-free, no matter how many times you use it.
Allows you to see how much you may be able to borrow. If you have a specific number in mind to make home improvements or take care of household expenses involving renovation, the loan calculator can tell you how.
It shows you the exact figure you will have to repay every month over the loan tenure.
It is free of charge and can be used at any time of the day without a limit.
You can enter innumerable variables to arrive at a personal loan EMI amount that fits into your budget.
It can help you determine the real cost of making home improvements and avoiding costly and disruptive moves.
It can help you calculate how long it will take you to pay off a home improvement loan based on your monthly EMI.
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The calculator is a convenient and simple online tool that can estimate your EMI amount you need to pay each month. Enter the loan details into the personal loan EMI calculator to gauge your overall cost and monthly payment for the personal loan. Key in the principal amount, the loan duration, and the interest rate to instantly receive your EMI amount.
The calculator shows you how to calculate a new loan either in terms of loan duration or by EMI amounts. This gives you the choice of knowing how you want to handle the loan repayment. Depending on the EMI comfortable to you, you may want to opt for a short-term loan to pay it off as soon as possible or select a long tenure at a low EMI that fits into your budget.
A personal loan gives you the money you can use for various expenses, such as home improvement or renovation. Applying for a personal loan is straightforward with a swift approval process, allowing you to receive the money in a lump sum. However, before you enjoy these benefits, it is important to consider these factors:
A personal loan calculator is one of those essential financial tools that can help you determine how you can secure and pay for a loan.
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