Calculating the payable interest amount before applying for any type of personal loan is a wise move. By doing so, you will be helping yourself with a better repayment strategy. You can easily find out personal loan interest regardless of applying online or visiting your lender.
Let us see how to find out personal loan interest: Before we start, let us learn about some of the standard terms that you will need to know before calculating the interest amount. CIBIL credit score This score proves your creditworthiness which is highly influenced by your past repayment activities. Having a credit score above 750 is considered suitable for any type of personal loan like wedding loan, business expansion loan, etc. Loan amount For any type of personal loan, the principal amount defines the interest rate for repayment. Repayment Tenor When you opt for a lower tenor, your interest amount decreases, it is valid for all kinds of personal loans, including the wedding loan. How to calculate the interest loan amount Here we will be using the following formula: Formula: The formula for finding the interest rate: I/Pt = r Here, "I" refers to the amount of interest that you need to pay within a predefined term. "P" refers to the principal amount of the loan. "t" refers to the free defined term duration in the loan agreement. "r" refers to the value of interest rate in the decimal form. Multiply the result by 100. Also, the formula for specific period interest amount: I = Prt Using the above formula, you can quickly determine the interest rate for any type of personal loan. However, it would be more feasible to use an online loan calculator. You can find the calculator on the official website of your lender and use it free of cost. Check out with one of the leading NBFCs like Bajaj Finserv to get access to hassle-free personal loans and get funds up to Rs.25 lakh with minimal paperwork. This NBFC also provide pre-approved loan offers to make the processing faster and easier for their customers.
0 Comments
Leave a Reply. |
AuthorAman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management. |