This document provides information about Equated Monthly Installments (EMIs) for personal loans. It defines an EMI as a fixed monthly payment used to repay an outstanding loan amount over time. It introduces a personal loan EMI calculator tool that can calculate loan payments based on principal, interest rate, and tenure. It also discusses how the components of a loan (principal and interest) change over the tenure of the loan and whether EMI amounts can change depending on fixed or floating interest rate plans.

1. Welcome

2. EMI - Loans
Presentation by
• Primary Information Services
• www.primaryinfo.com
• mailto:primaryinfo@gmail.com

3. What is an
EMI?
An Equated Monthly Instalment
(EMI) is a fixed monthly
payment, part of the equally
divided repayments, used to
clear off your outstanding loan.
Your personal loan EMI depends
on the loan principal, the rate of
interest, and the loan tenure.

4. What is a Personal
Loan EMI
calculator?
A Personal Loan EMI
calculator is an online
tool that takes your
principal, rate of
interest, and tenure into
consideration to
calculate your EMI.

8. Though pre-closure of a personal loan will have a
positive impact on your credit score, it is
economically beneficial only if it is done earlier
during the tenure of the loan. Most personal loans
come at a pre-payment penalty of a certain
percentage of the outstanding amount.
DOES FORECLOSURE OF PERSONAL LOAN AFFECT CIBIL
SCORE?

9. During the initial stages of your loan tenure, most of
your EMI goes towards repaying the interest
component.
During the later stages, the EMI goes predominantly
towards repayment of the principal.
So if your loan tenure is 10 years, at the midway
point of 5 years you would have paid off most of the
interest component.
The EMIs over the remaining 5 years would mostly
be towards paying off the principal amount.
PRINCIPAL & INTEREST COMPONENTS
OF THE LOAN AMOUNT

10. Your EMI depends
on the kind of plan
you have taken.
Banks offer two
main types of
interest plans on
loans - Fixed Rate
or Floating Rate
plans.
Can the EMI amount
change?

12. Choose a fund suitable for short term
investing. Start an SIP in such a fund, one
that you would comfortably pay in an EMI.
Whenever you feel like buying something,
see if there’s enough money in your
reverse EMI fund. If there is, just
withdraw it and buy what you want.
Otherwise, wait. There’s no need to treat
this as savings. This is an expenditure
fund. From an interest expense of 17-
20%, you will end up with ..
‘REVERSE EMI’

13. Links to the
calculater
RESOURCES
https://homeloans.sbi/calculators
https://www.iifl.com/personal-loans/emi-calculator
https://www.hdfcbank.com/personal/tools-and-calculators/personal-
loan-calculator
https://emicalculator.net/

14. QUESTIONS?