Personal Loan

 A Personal Loan EMI (Equated Monthly Installment) is the fixed amount you pay monthly to repay your loan. It includes both principal and interest and continues until the loan is fully settled.

Factors Affecting EMI

• Loan Amount: Higher loan = Higher EMI
• Interest Rate: Varies based on credit score and lender
• Loan Tenure: Longer tenure = Lower EMI but more interest
• Credit Score: A higher score gets lower interest rates

Example

Option A: 5-Year Loan

• Loan: ₹5 Lakh
• Interest: 12%
• EMI: ₹11,122
• Total Repayment: ₹6.67 Lakh

Option B: 3-Year Loan

• Loan: ₹5 Lakh
• Interest: 12%
• EMI: ₹16,607
• Total Repayment: ₹5.98 Lakh

Ways to Reduce EMI

✔ Maintain a high credit score for better rates
✔ Choose a longer tenure for lower EMI
✔ Compare loan offers from multiple banks
✔ Prepay when possible to reduce interest

Conclusion

A personal loan offers quick funds for various needs, but choosing the right EMI plan is crucial. Shorter tenures save interest, while longer ones provide flexibility. Plan smartly!