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Personal Loan

The Importance of Knowing Your EMI Before Taking a Personal Loan

27 Feb 2025 by Team FinFIRST
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Taking a personal loan can be a smart way to meet financial needs such as weddings, travel, or medical emergencies. However, understanding the EMI for a personal loan is crucial to ensuring a smooth borrowing experience.

Knowing your Equated Monthly Instalments (EMIs) before committing to a loan helps you budget effectively, evaluate repayment capacity, and avoid financial stress. With tools like a personal loan calculator and offerings such as IDFC FIRST Bank’s FIRSTmoney smart personal loan easily available online, you can enjoy a more convenient and transparent borrowing process.

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Why should you know your EMI before taking a personal loan?
 


Here’s why it is essential to be aware of your personal loan EMIs:

1. Financial planning and budgeting

Knowing your loan EMIs allows you to plan your monthly finances effectively. It helps you allocate funds for essential expenses while setting aside the required amount for loan repayment, reducing the risk of default.

2. Avoiding over-borrowing

A clear understanding of your EMI payments ensures that you don't take a loan amount that stretches your finances too thin. This minimises the chances of financial strain over the loan tenure.

3. Comparing loan offers

By calculating the loan EMIs with different loan amounts, tenures, and interest rates, you can compare multiple loan offers. This enables you to choose the most cost-effective loan that aligns with your financial goals.

You can get different loan amounts based on your salary.

How to calculate your EMI for a personal loan
 

Using a loan calculator is the easiest way to determine your EMI. Here’s how it works:

  1. Enter the loan amount: Specify the loan amount you intend to borrow.
  2. Select the interest rate: Input the applicable personal loan interest rate offered by the lender.
  3. Choose the loan tenure: Specify the repayment tenure in months or years.

The EMI loan calculator instantly displays your monthly instalment amount, helping you assess affordability and plan your finances accordingly.

Example: EMI calculation made simple
 

Suppose you borrow ₹5 lakhs at an interest rate of 10.99% p.a. for a tenure of 3 years. Using an EMI calculator, you’ll find that your monthly instalment is approximately ₹16,383.

Knowing your loan EMIs beforehand is the foundation of smart financial planning — empowering you to borrow confidently and repay comfortably.

Why choose IDFC FIRST Bank’s FIRSTmoney smart personal loan?
 

IDFC FIRST Bank’s FIRSTmoney smart personal loan makes borrowing effortless with:

  • Quick EMI calculations:

    • Use the loan calculator to estimate your EMIs and choose a loan amount that fits your budget.

  • Flexible tenures:

    • Repayment periods ranging from 9 months to 60 months allow you to tailor your loan to your financial needs.

  • Competitive interest rates:

    • Starting from as low as 10.99% p.a., ensuring affordability.

  • Zero foreclosure charges:

    • Repay your loan early without incurring extra fees.

  • Fully digital process:

    • Apply online through a completely digital process and receive instant loan approvals, saving you time and effort.

Whether you’re planning a wedding, consolidating debt, or funding a dream vacation, a FIRSTmoney smart personal loan offers unmatched flexibility and convenience to meet your financial goals.

Conclusion

Understanding your EMI before taking a personal loan is an essential step toward financial security. By using an EMI loan calculator, you can make an informed decision, plan effectively, and choose a loan that aligns with your financial goals. IDFC FIRST Bank’s FIRSTmoney smart personal loan not only simplifies the borrowing process but also offers competitive rates and added benefits, ensuring a hassle-free loan experience. Apply for a FIRSTmoney smart personal loan today and enjoy the confidence of smarter financial planning.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

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