When you plan to borrow some money from a bank for personal use, one of the most critical aspects that anyone would think of is the Equated Monthly Installment, commonly known as EMI. This is where Punjab National Bank (PNB) Personal Loan EMI Calculator comes to the rescue, providing accurate calculations to help you make a knowledgeable choice. 

What is the PNB Personal Loan EMI Calculator?

The PNB Personal Loan EMI Calculator can easily calculate the loan's monthly installments from a borrower's wage or salary. The calculator helps the user input and choose several vital details referring to the loan, including the amount of the loan, the interest rate, and the loan period, and get the figures on EMIs calculated within a few seconds. From this tool, one can learn a lot, especially about those applying for a loan who need to know the pros and cons.

However, EMI calculator are not only simple to apply but also helpful in avoiding calculative work(hand work) done frequently and, in return, provide the results with prematurity. This assists them in offering borrowers essential details regarding the repayment plan necessary to arrive at their decision on fulfilling the obligation on the loans granted.

How Does the PNB Personal Loan EMI Calculator Work?

 The PNB Personal Loan EMI Calculator uses a simple formula where one needs to input the aspects such as the loan amount, which represents the sum of money that has been borrowed by an individual, interest rate, which is further known as the cost of borrowing money for a certain period and tenure or period of the loan. Because these involve a lot of calculations, the tool provides the results immediately after the computation, which helps a lot in planning for the future.

PNB Personal Loan EMI Calculator Formula

The formula used to calculate the EMI for a personal loan is:

???=?×?×(1+?)?  / (1+?)?−1

Where:

• EMI = Equated Monthly Installment
• P = Principal loan amount
• r = Monthly interest rate (annual interest rate divided by 12 and then by 100)
• n = Loan tenure in months

This formula factors the principal and the interest rate, where every payment ensures the monthly interest and part of the principal amount are paid. The interest declines over the years, and the principal part rises to ensure the debt is fully paid on the loan's maturity date.

Example of PNB Personal Loan EMI Calculation

Let's consider an example to understand better how the EMI calculation works. Suppose you take a personal loan of ₹5,00,000 with an annual interest rate of 12% for a tenure of 5 years (60 months).

• Principal loan amount (P) = ₹5,00,000
• Annual interest rate = 12%
• Monthly interest rate (r) = 12 / (12 × 100) = 0.01
• Loan tenure (n) = 5 × 12 = 60 months

Plugging these values into the formula:

 EMI=(1+0.01)60−15,00,000×0.01×(1+0.01)60​

???≈5,000×(1.816)0.816/0.8165,000×(1.816)​

???≈9,0800.816/0.8169,080​

???≈₹11,129 

So, the monthly EMI would be approximately ₹11,129. This calculation illustrates how the EMI covers the interest and the principal repayment over the loan tenure.

How to Use the PNB Personal Loan EMI Calculator?

The steps to use the PNB Personal Loan EMI Calculator are straightforward. Here are the steps to use the calculator:

1. Visit the PNB Official Website: The Personal Loan EMI Calculator can be found on the official PNB portal.
2. Enter the Loan Amount: Enter the amount you want to borrow, which will be the loan amount you will get.
3. Input the Interest Rate: The interest rate that should be incorporated here is either the rate offered by the bank or the expected rate.
4. Select the Loan Tenure: Select the period through which you would like to complete the repayment of the amount borrowed. This can be in the form of months or even years.
5. Click on "Calculate." After inputting all the relevant information, click the Calculate icon to see the EMI amount.

Your monthly EMI will be calculated, and an amortisation table will be shown to you that breaks down each payment into its principal and interest portions. This segmentation analysis enables one to determine the proportion of the EMI that is applied to the capital amount and the amount that is the interest rate.

Features and Benefits of the PNB Personal Loan EMI Calculator

Features

1. User-Friendly Interface: The calculator has a minimal and straightforward interface, so it does not require any technical knowledge.
2. Quick Calculations: Ensures immediate query response, saving time and energy.
3. Amortisation Schedule: Provides an analysis of each EMI by outlining the principal and interest segments.
4. Comparison Tool: Enables the comparison of loan profiles generated from different loan data inputs like loan amount, interest rate, and loan tenure.
5. Accessibility: Access is not limited to the calculator as it can be accessed online at any time and location.

Benefits

1. Financial Planning: There are numerous benefits associated with preparing monthly obligations with the EMI calculator.
2. Transparency: It is evident how the loan must be repaid; no surprises or hidden charges are involved.
3. Time-Saving: Saves time and eliminates tedious calculations, offering the best and the fastest results.
4. Informed Decisions: Enables borrowers to select from several offers from different companies and choose the appropriate one.
5. Stress Reduction: Assists in managing the stress required in the repayment of loans by offering easy-to-understand details.

Amortization Schedule of PNB Personal Loan

An amortisation schedule is a tabular representation that depicts the payment of each instalment, in terms of the interest and the remaining principal amount, throughout the loan repayment period. This schedule assists the borrower in comprehending what portion of every payment goes towards interest and the rest towards the principal amount to monitor the loan's progress.

Example of an Amortization Schedule

In the case of the above example of ₹5,00,000 loan at 12% for 60 months, an amortisation schedule will indicate the EMI, interest component, principal component, and the outstanding loan amount for each of the instalment payments right from the first to the last instalment. Firstly, the interest charges are higher while the proportion of the principal is less; in the later stages, the interest charges decline as the principal reduces.

Here’s a brief look at what the initial months of the amortisation schedule might look like:

Based on the computation above, it is evident that the interest portion declines from the first month and is offset by the increase in the principal portion, which also progressively reduces the overall loan balance.

Conclusion

Every individual considering a personal loan should use the PNB Personal Loan EMI Calculator. The provision of practical EMI calculations assists borrowers in managing their cash flow and financial planning services. The additional facilities of the calculator, like the amortisation schedule and comparison tool, also provide the advantage of simplicity and accuracy.

Knowing about your EMI commitments is necessary, whether you are taking a considerable amount, planning to finance your marriage, or paying off your loans. The benefits of the PNB Personal Loan EMI Calculator are that you can come up with a better understanding of your monthly payments to ensure that you can effectively plan your finances and achieve all your goals.