Punjab and Sind Bank Personal Loan EMI Calculator

How the Punjab and Sind Bank Personal Loan EMI Calculator Works

The calculator applies a standard formula used across all lenders. It needs three inputs: the principal, the monthly interest rate and the number of instalments.

EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]

Where:

• EMI stands for Equated Monthly Instalment
• P stands for principal which is the money that has been borrowed
• R stands for the monthly interest rate which can be derived from the annual interest rate by dividing by 12 and then by 100
• N stands for the total number of monthly instalments in the tenure

Conversion of the annual rate to the monthly rate is significant. When there is 11% annual rate, dividing by 12 gives 0.11/12 = 0.00917 monthly rate.

Step to Calculate The Personal Loan EMI

Let’s consider Ravi borrows a personal loan amount of ₹5,00,000 from Punjab and Sind Bank for a period of 5 years at an interest rate of 11% per annum. As per that:

• Value assignment: The value assigned is principal ₹5,00,000, rate of interest 11% and tenure is 5 years.
• Convert into monthly terms: The monthly interest rate comes to 0.11/12=0.00917. Number of instalments is 5*12 = 60.
• Plugging into the formula: The formula becomes: EMI = 5,00,000 * 0.00917 * 1.00917 ^ 60 / (1.00917 ^ 60 - 1).
• Calculate EMI: It works out to be around ₹10,871.21 per month.
• Total repayment amount: The total repayment amount will be ₹10,871.21 * 60 = ₹6,52,272.69.
• Calculate total interest amount: The total interest amount is ₹6,52,272.69 - ₹5,00,000 = ₹1,52,272.69. 

Investment

Secure

Secure your child’s future with or without you

Start Investing

₹10,000/Month

& Get

₹1 Crore^*

VIEW PLANS

*Standard T & C Apply

Factors Influencing Your Punjab and Sind Bank Personal Loan EMI

EMI determination depends not only on the money borrowed but also on the following considerations:

• Loan Amount: The higher the amount of loan taken, the more will be the EMI, other things remaining constant.
• Interest Rate: Interest rate applicable shall be determined on the basis of borrower category and CIBIL Credit Vision Score. Punjab & Sind Bank has announced different rates of Personal Loan for different CIBIL Score bands.
• Tenure: Higher tenure leads to lower EMI and higher interest. 
• Credit Score: Punjab & Sind Bank uses CIBIL Credit Vision Score bands when pricing personal loans. Higher score bands generally attract lower interest rates. 
• Processing Fee: Punjab & Sind Bank currently charges 0.50% + GST for Government/PSU/Pensioner/Approved Educational Institute borrowers and 1.00% + GST for Private Institute/MNC borrowers. 
• Prepayment: Prepayment reduces the outstanding loan before the scheduled repayment date. Punjab & Sind Bank currently lists nil prepayment charges for its Personal Loan. 

Individuals can also consider different long-term instruments like PPF, mutual funds, child education plans and build a corpus to lower their loan and fit the EMIs in their financial strategy.

How to Use the Punjab and Sind Bank Personal Loan EMI Calculator

The calculator needs three inputs to produce a result.

• Loan Amount: Enter the amount to be borrowed.
• Interest Rate: Enter the interest rate that applies to your profile. Please confirm with the bank instead of relying on a published rate range.
• Tenure: Select the repayment period in months or years.

You can then view results and check the monthly EMI, total interest and total repayment. Running the same calculation at a slightly higher rate is worth doing. It shows how the EMI moves if the sanctioned rate differs from the expected one.

Conclusion

The Punjab and Sind Bank Personal Loan EMI Calculator shows the monthly outgo before a loan is taken, along with the total interest across the tenure. Investors can use this tool for structuring an investment strategy that fulfils their financial objectives.