The 3 Easy Steps to Calculate EMI on Personal Loan?

01 Nov 2019

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A personal loan does not require the borrower to provide collateral and so it is an unsecured loan. Since these are unsecured loans, the rate of interest on these loans are believed to be quite higher than all other types of loans. The purpose or intention of a personal loan is to fund immediate financial contingencies. It could either be for business capital, marriage, education or even foreign trips, though the end use of the loan really depends on the borrower, as long as it is for a legitimate financial need.

Before you apply for a Personal Loan, you may want to get down to the basics, to shop for the best offers on personal loans in the market. Among the most popular ones is the Bank of Baroda’s Personal loan product which apart from having the pedigree of belonging to one of the oldest and largest Indian banks, comes replete with some amazing features like flexible repayment options, affordable EMIs (Equated Monthly Instalments) that sit easy on your pocket and sizable loan amount among others in the category of personal loans.

Calculating the EMI on personal loans

The EMI calculations mainly rely on three variables- the loan term or the tenure of the loan, the loan value and the rate of interest. The rate of interest is one of the aspects that comes determined by the bank.

Calculating using the PMT formula

This is a longer, tedious and round about approach to calculating the EMI on your personal loan. Here, you can run the PMT formula on Microsoft Excel to calculate the EMI, where

  • PMT is your EMI,
  • NPER or number of periods is the total number of payments for the loan
  • PV is the loan value or the principal
  • Rate is the rate of interest/12
  • The formula is
  • PMT (Rate, NPER, pv).

You can keep trying the formula for various combinations and then choose the one with the lowest EMI, though this is a roundabout approach that could be prone to human error.

Online EMI Calculator

Or a far easier option to calculate the affordable EMI, is using, for example, Bank of Baroda’s online personal loan EMI calculator.

Here, you will find a slider on the range of each of the three basic variables on your screen- the loan amount you are likely to need, the tenure or the repayment period of the loan that suits your finances and the rate of interest.

Now, the rate of interest is what you get from the bank, while the other two aspects, i.e., the loan amount and the tenure of the loan are the ones you can play around with here.

When you place the cursor on a particular value of the loan term, rate of interest and loan amount, the calculator throws up a monthly payment value, which is your EMI. You can move the cursor horizontally along the range provided to pick the various values.

Here’s why using a Bank of Baroda personal loan EMI calculator works.

If EMI is too high

  • You can pick a longer loan term or
  • You can make the loan amount smaller.

If you find the EMI is affordable or even lower than ideal then you can plan to repay faster by either

  • Taking a larger loan value or
  • A shorter loan term.

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  • Haresh
    29 October, 2021


  • khemchand
    23 October, 2021

    I have applied personal lone ID :- DILPLWI 10157714 is not approved of digital. site says pleae contect you nearest branch bank of baroda plase tell me what can my application approved

  • Anant rajendra kadam
    17 September, 2021


Reasons to Consider a Home Loan Balance Transfer

Reasons to Consider a Home Loan Balance Transfer
Home Loans make it possible for you to invest in a property of your choice. The property could be a ready-to-move-in home or an under-construction property, or a plot of land on which construction will be carried later on. You may also avail loan from any bank/NBFC. Even though you may have started repaying the loan availed from other bank/NBFC, there could be times when you may not want to continue with that lender. Fortunately, you can change your lender and move to another, offering a better deal, by opting for a Home Loan Balance transfer. Let's know more about it in this article.
What Is a Home Loan Balance Transfer And How To Transfer My Home Loan?
A Home Loan balance transfer is a unique facility that enables you to transfer your existing Home Loan to another lender. If you are unhappy with your current Home Loan provider or paying a higher interest rate, you can opt for a Balance Transfer. You can now complete the Home Loan balance transfer process online through the Bank of Baroda website. The entire process is streamlined for your convenience. You need to provide us with the details of your existing Home Loan, lender's name, and the loan amount you intend to transfer. Yes, a Home Loan balance transfer can prove incredibly beneficial. Let's understand when you should opt for it and the benefits of transferring the loan.
When to Opt for Home Loan Balance Transfer Process?
Having explained what is balance transfer loan, let's understand when you should opt for it.
When there's a chance to reduce the overall cost of your Home Loan
The most obvious reason to consider a Home Loan balance transfer is to reduce your Home Loan's overall cost. A Home Loan can work out to be quite expensive in the long run as it involves interest in each installment. So, if there is a chance to save money by transferring the loan to a new lender, you should consider it. However, it would help if you remembered calculating the cost of transferring the loan, the processing fees, etc., and then deciding to move the loan.
When there's a chance of getting a reduced interest rate on your Home Loan
You can consider opting for a Home Loan balance transfer if you come across a lender offering an interest rate lower than that provided by your original lender. When it comes to Home Loans, a lower interest rate can result in significant savings in the long run even by a few decimals. If your calculations show that a reduced interest rate can result in savings, you can opt for the balance transfer loan.
When there's a chance of changing your EMI amount or loan tenure
If you are struggling to pay your loan EMIs, and want to reduce the EMI amount, you can check for a lender who can offer a chance to modify the EMI amount. A lower EMI can make the loan more affordable but may increase the loan tenure. Alternatively, you can increase your EMI amount and reduce the loan tenure as well.
When you need additional loan amount for extension/repair/renovation
Benefits of Home Loan Balance Transfer
Now that we know what is balance transfer loan, let's look at its many benefits:

As mentioned above, opting for a Home Loan balance transfer from one lender to another can reduce your EMI amount to quite an extent.
A balance transfer loan can also result in a reduced interest rate on your Home Loan, which, in turn, promotes higher savings.
Opting for the Home Loan balance transfer process can also help enhance your CIBIL scores, proving beneficial when you need other loans in the future.
When you've paid all EMIs on time, opting for a balance transfer gives you the upper hand in negotiating the loan's interest rate and terms with the new lender.
Opting for a balance transfer is especially beneficial if you are not satisfied with your original lender's facilities and services.

To be eligible for a Home Loan balance transfer, you should ensure that you've paid all EMIs on time, without defaulting. The bank considers your credit repayment behaviour and your current credit score before approving your request. Indeed, a Home Loan balance transfer can result in significant savings. So, get the best Home Loan services with Bank of Baroda. Click here to transfer your existing loan from another lender to ours!

Types of Car Loans

Types of Car Loans
Car Loans are for those looking to finance their car purchase at relatively attractive interest rates.
At Bank of Baroda, you can get financing of up to 90% of the on-road price of a brand new car of your choice if you opt for a Car Loan. Anyone can avail of a Bank of Baroda Car Loan, subject to their eligibility. These are available for a maximum loan tenure of 7 years, and the loan amount can be as much as Rs 1 crore. The bank gives a 0.25% concession on the interest rate to its existing home loan customers with a clean credit history. What's more, Concession of 0.50% in rate of interest on Car Loans to those applicant/s who offer minimum 50% of Loan limit as liquid collateral security e.g. Fixed Deposit of our Bank, NSC, KVP or LIC Policy.
The cars are hypothecated with Bank of Baroda until the full and final repayment of the entire loan amount.
Types of Car Loans in India
While there are generally three types of Car Loans available in India, there may be lender-specific customised options on offer. Most banks and financial institutions in the country offer new car loans, old car loans or Electric Car . Let's understand in brief these different types of car loans.
New Car Loan
As the name suggests, such loans are offered by banks to fund the purchase of new cars. You can get a car right out of the showroom without worrying about where to arrange the funds from. Banks will come to your rescue and offer loan options to choose from. You can compare interest rates and other charges being levied, along with some benefits associated with the loan product, and accordingly select your lender and loan option.
To promote Electic Vehicle Bank Bank of Baroda is offering concession in ROI.
Pre- owned Car Loan
Some banks also help you buy second-hand cars or used vehicles, although the financing available for the same would generally be lower than that available in the care of new vehicles.
Bank of Baroda offers Car Loans to purchase a new hatchback, sedan, MUV or SUV for private use. The documentation is minimal, and the interest rates and processing fee are among the best.

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